Microsoft Press Release

Getting in Touch with PC Entertainment is Now Easier, More Convenient and More Fun

REDMOND, Wash., July 12 /PRNewswire-FirstCall/—Microsoft Corp. (Nasdaq: MSFT) today announced that it will unveil two new hardware devices with innovative, easy-to-use features and sophisticated designs that will make accessing PC entertainment more enjoyable. The devices are an expression of Microsoft’s continuing commitment to enhancing consumers’ digital experiences
anywhere.

Microsoft Hardware has developed the first three-in-one control center for a Windows(R) XP-based Media Center PC with remote, keyboard and mouse capabilities in one sleek device, designed exclusively for the living room. For digital camera owners, Microsoft will also introduce a mouse, keyboard and digital image software suite for everyday use that turns any desktop into a virtual darkroom.

“We create hardware for how and where people use their PC,” said Tom Gibbons, general manager of the Hardware Group at Microsoft. “With this in mind, we designed two new devices to enhance the digital entertainment activities people are now enjoying, such as playing movies on their Media Center and editing digital photos.”

More Control, Less Complexity
New Microsoft(R) Remote Keyboard for Windows XP Media Center Edition enables greater interaction and control of a Media Center PC compared with a regular remote. This three-in-one device, the first of its kind, makes it easy to turn up the volume, type a message, or point and click with the fully integrated remote, keyboard and mouse capabilities—all without ever having to leave the couch.
Remote Keyboard for Windows XP Media Center Edition features a sleek design to match the living room, and its compact size enables it to be easily stowed when not in use to help get rid of clutter. With smart features including a Media Center green button and backlit buttons, this device makes using a Media Center PC easier and more fun than ever.

Cut, Crop, Click
Wireless Optical Desktop 5000 includes a wireless keyboard, mouse and photo-editing software that makes it a snap to access, edit and share digital photos on a PC. The keyboard comes equipped with PhotoCenter, featuring one-touch access to most-used photo-editing functions and Zoom Slider to zoom into and out of photos. The sleek wireless optical mouse is a picture-perfect companion to the keyboard with its new Magnifier tool, which enlarges any section of the screen for easy viewing and editing. With the inclusion of new Digital Image Standard 2006 software, this integrated hardware and software solution delivers all the tools needed to customize photos while reducing the number of editing steps.

Pricing and Availability
The new products introduced today will be widely available by September 2005 for the following estimated retail prices (1):
—Remote Keyboard for Windows XP Media Center Edition: $104.95 (U.S.)
—Wireless Optical Desktop 5000: $104.95 (U.S.)

About Microsoft Hardware
For more than two decades, the Hardware Group has employed innovative engineering, cutting-edge industrial design and extensive usability testing to create products of exceptional quality and durability that enhance the software experience and strengthen the connection between consumers and their PC. Microsoft Hardware leads the industry in ergonomic engineering, industrial design and hardware/software compatibility, offering consumers an easier, more convenient and more enjoyable computing experience.

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

(1) Prices are U.S. estimated retail prices. Actual prices may vary.

NOTE:  Microsoft and Windows are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.