Microsoft Commits to New Versions of Office for Mac

Formalized Commitment Underscores Mac BU, Apple Long-Term Relationship

SAN FRANCISCO, Jan. 10 /PRNewswire-FirstCall/ -- Microsoft Corp.'s
(Nasdaq: MSFT) Macintosh Business Unit (Mac BU) today announced at
Macworld Conference & Expo 2006 a formal five-year agreement that
reinforces Microsoft's plans to develop Microsoft(R) Office for Mac
software for both PowerPC- and Intel-based Macs. The Mac BU outlined
several upcoming improvements to Entourage(R) 2004 for Mac and said it
plans to build converters to read the new Microsoft Office Open XML
Formats. The commitment agreement and product announcements emphasize
the cooperation between the two companies and serve as significant
indicators of Microsoft's ongoing commitment to the Mac platform.

(Logo: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO )

"Microsoft has a history of successful collaboration with Apple, and
this agreement underscores our commitment to the Mac platform," said
Tom Gibbons, vice president of the Consumer Productivity eXperiences
Business at Microsoft. "We've had many years of success with Office
for Mac, and this formal commitment confirms that we're in the Mac
business for the long haul."

For more than 20 years, the Mac BU has collaborated with customers,
other Microsoft teams and Apple Computer Inc. to deliver leading-edge
productivity software. The agreement paves the way for the two
companies to combine talents to meet the needs of Mac customers now
and in the future.

"Microsoft's Mac BU continues to be a great Mac developer, bringing
innovative and compatible versions of Microsoft Office to Mac
customers," said Philip Schiller, senior vice president of worldwide
product marketing at Apple. "The Mac platform has never been stronger,
and we're pleased that Microsoft is committed to delivering great Mac
products for many years to come."

Entourage 2004 Delivers on Customer Requests

Microsoft is putting the final touches on a number of Entourage 2004
enhancements scheduled for delivery in March 2006. Since the release
of Mac OS X 10.4 (Tiger), the Mac BU has worked with Apple to enable
Sync Services integration with Entourage information and data.
Customers will soon be able to sync their Entourage calendar, address
book, notes and tasks with handheld devices that also work with Sync
Services. Support for Spotlight, another Tiger feature, will allow
customers to more effectively search Entourage e-mail messages, as
they are already able to do with their Office 2004 for Mac Word,
PowerPoint(R) and Excel(R) files. The Mac BU has enhanced Smart Card
technology for customers who need to send digitally signed and
encrypted e-mail messages.

Messenger for Mac Meets Enterprise Needs

The Mac BU will release new features that continue to make Messenger
for Mac an ideal messaging application for Mac enterprise customers.
While the current version of Messenger for Mac provides more secure
messaging and file transfers within the firewall, Messenger for Mac
5.1 will allow users to send files more securely to external contacts.
The updated version also will be better able to determine a user's
location and where to send the message if the user is logged into
Microsoft Office Live Communications Server on more than one machine.
In addition, IT managers will have improved control over how they save
chats at an organizational level. Messenger 5.1 is expected to be
released in March.

Mac BU Focuses on Cross-Platform Compatibility

Seamless cross-platform compatibility is of prime importance to Mac
users and remains a key focus of the Mac BU. To ensure that Office for
Mac customers receive the highest level of compatibility, the Mac BU
will issue converters that let Office for Mac users read the new
Microsoft Office Open XML Format. These downloadable converters will
be released for current versions of Office for Mac following the
availability of the next version of Office for Windows(R). The Mac BU
partners daily with many groups at Microsoft to help ensure that its
software operates smoothly with software on the Windows platform.
Through this ongoing collaboration, the team is well positioned to
continue identifying new and creative ways to help Mac users work
smarter.

About Microsoft Macintosh Business Unit

The Macintosh Business Unit at Microsoft is a leading developer of
software and online products for the Macintosh platform. The group
comprises more than 180 full-time Mac product experts and is dedicated
to creating innovative software for Mac customers worldwide. For more
than 20 years, Microsoft has developed award-winning software for the
Mac. Current products include Microsoft Office 2004 for Mac, a
productivity suite that includes the e-mail application and personal
information manager Entourage 2004, Word 2004, Excel 2004, PowerPoint
2004 and Messenger for Mac 5.0, and Virtual PC for Mac Version 7.0.
More information about the Mac BU and Microsoft Macintosh products is
available at http://www.microsoft.com/mac .

About Microsoft

Founded in 1975, Microsoft is the worldwide leader in software,
services and solutions that help people and businesses realize their
full potential.

NOTE: Microsoft, Entourage, PowerPoint, Excel and Windows are either
registered trademarks or trademarks of Microsoft Corp. in the United
States and/or other countries.

Apple, Mac and Macintosh are registered trademarks of Apple Computer Inc.

The names of actual companies and products mentioned herein may be the
trademarks of their respective owners. SOURCE Microsoft Corp.