With Windows XP Now Complete, Industry Excitement Continues to Build As General Availability Date of Oct. 25 Nears

REDMOND, Wash. -- Aug. 24, 2001 - Microsoft Corp. today announced the release of Microsoft® Windows® XP, the highly anticipated next major version of the Windows operating system, to computer manufacturers around the world. With development of the software now complete, Windows XP is on schedule for widespread availability on Oct. 25. Industry partners, computer manufacturers and customers greeted the news with excitement about the opportunities Windows XP will offer for creating, connecting and communicating in new ways.

"Simply put, Windows XP is the best operating system Microsoft has ever built," said Bill Gates, chairman and chief software architect at Microsoft. "The performance improvements and advanced features of Windows XP are the culmination of more than 15 years of research, development and customer feedback. For customers, computer manufacturers and industry partners, Windows XP truly underscores the excitement and potential of the digital decade ahead."

Windows XP, the new Windows with a new look, builds on the momentum of the Internet and digital media with improvements that increase productivity and provide both business and home users with an easy-to-use and exciting PC experience. Windows XP extends the personal computing experience by uniting PCs, devices and services, and brings the solid foundation of Windows 2000 to home PC users, enhancing reliability, security and performance.

"Windows XP rocks!" said Jim Allchin, group vice president of Windows at Microsoft. "Windows XP is the PC experience both home and business users have been looking for with the reliability and stability they have always wanted as well as end-to-end experiences with digital photos, digital music and communication. This is the operating system I have always wanted to build."

"At Siemens, we've been waiting a long time for an operating system like Windows XP and it's finally here," said John Minnick, principle corporate IT at Siemens, one of Microsoft's Global Account customers. "We can now realize our global Any4 Vision -- Anyone, Anywhere, Anytime, Any Resource. Whether your business deploys Windows XP Professional on a single computer or throughout a worldwide network like us, this new operating system is built on a common code base. That will lower the total cost of ownership. Windows XP is very feature rich for businesses. It's amazing how much new capability has been added since Windows 2000."

"I have helped many people begin to use a new system on their machines over the years, and this one is the tops," said Mark Ferguson, retired construction supervisor and Associate Expert for Windows XP (http://www.microsoft.com/windowsxp/expertzone/default.asp). "The home user finally has the chance to experience Windows in the way business has for years -- as a secure and reliable platform that will make the home computer a secure way to shop, play and learn. From automating the time sync on the clock to telling me when I need updates to protect my system, Windows XP 'just works.'"

Microsoft is continuing to work with industry participants to ensure their readiness for the biggest Windows event in Microsoft history. Hardware and software manufacturers can enroll their products in the Windows Catalog and the Designed for Windows XP Logo Program (http://www.microsoft.com/winlogo/default.asp). With manufacturers' products in the Windows Catalog and carrying the Designed for Windows XP logo, customers will be able to easily identify those products that will work great with Windows XP.

Microsoft is also continuing to work closely with PC manufacturers to ensure their most advanced hardware solutions will fully complement the new operating system. Customers can purchase a new "Windows XP Ready PC" today that meets the system requirements for Windows XP, allowing them to upgrade to Windows XP the day it ships. The complete list of Windows XP Ready PCs worldwide can be viewed online at http://www.microsoft.com/windowsxp/ready/.

In an event today on the Microsoft main campus, Bill Gates and Jim Allchin presented the final Windows XP "gold code" to representatives from six major PC manufacturers. Commemorative CDs containing the final Windows XP software were placed into six gold ZERO Halliburton P5 attach� cases, and the representatives immediately departed via helicopters to begin the final stages of incorporating the new operating system into their computer manufacturing systems.

Windows XP Home Edition and Professional

Windows XP unlocks the full potential of the personal computer and enables users to do amazing things with their PCs, such as acquire, organize and share their digital photos; have an all-in-one place to download, store and play back the highest-quality digital music; enjoy instant messaging, voice and video capabilities for communicating with friends and family; and make easy connections to enable sharing of computers and devices within a home or business.

Windows XP Home Edition is designed for individuals or families at home and includes experiences for digital media, home networking and communications. Windows XP Professional is the operating system of choice for businesses of all sizes and for people who demand the most out of their computing experience. Windows XP Professional adds remote access, security, performance, manageability and multilingual features to help users improve productivity and connectivity and work even smarter. Both editions of Windows XP will be available at retail in upgrade and standard versions.

Pricing

Windows XP Home Edition will be available in an upgrade version for $99 ERP and in a standard version for $199. Windows XP Professional will be available in an upgrade version for $199 and in a standard version for $299.

Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software - any time, any place and on any device.

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