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Microsoft Expands Consumer Reach of Windows Mobile Phones with Sony Ericsson

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Microsoft<R> Corp.
1 Microsoft Way
Redmond, WA, 98052-6399
USA



Press release date: February 10, 2008

First Windows Mobile phone from Sony Ericsson offers a premium consumer and business experience.

BARCELONA, Spain, Feb. 10 -- Today at Mobile World Congress 2008, Microsoft Corp. announced that Sony Ericsson will deliver a new Windows Mobile phone, the XPERIA(TM)X1, which blends mobile Web communication and multimedia entertainment, to meet consumer demand for a premium mobile experience for work and play.

"People should be able to have phones that deliver what they need throughout the day and stay connected with today's broad array of on-demand information and entertainment no matter where they are," said Pieter Knook, senior vice president, Mobile Communications Business, Microsoft. "Our shared vision with Sony Ericsson is to make the concept of 'One Phone for Your Life' a reality and finally give consumers the freedom of true mobility."

The XPERIA X1 from Sony Ericsson lets users choose from a dynamic range of activities for work and play backed by the familiarity of Microsoft Windows and extensive availability of Windows Mobile applications and services. To be introduced in the second half of 2008, XPERIA X1 is the first phone to realize the vision of XPERIA, a new Sony Ericsson sub-brand that reflects a premium experience of energized communication.

"XPERIA is our promise to think foremost about user experience and to deliver on our goal of providing a true premium experience - anytime, anywhere, anything, with anyone," said Rikko Sakaguchi, head of Portfolio and Proposition at Sony Ericsson. "By working with Microsoft on the XPERIA X1, we have been able to couple our excellence in creating compelling consumer propositions with the productivity capabilities of Windows Mobile to deliver a seamless blend of mobile Web communication and multimedia entertainment within a distinctive design."

Sony Ericsson is the latest leading device manufacturer to design and market mobile phones based on the Windows Mobile platform. The company sold more than 100 million handsets in 2007 and excelled in sales of imaging and music-enabled devices, such as Cyber-shot and Walkman phones. In fiscal year 2007, Microsoft sold 11 million Windows Mobile licenses and expects to sell more than 20 million licenses in fiscal year 2008, making Windows Mobile a leading smartphone platform globally. With the addition of the XPERIA X1 from Sony Ericsson, four of the world's top five makers of mobile phones will ship Windows Mobile devices in 2008.

"The agreement between Microsoft and Sony Ericsson is undoubtedly a win- win for both companies," said Lars Vestergaard, research director, European Wireless and Mobile Communications at IDC. "Marrying the power and ease of use of the Windows Mobile platform with the advanced consumer features Sony Ericsson is known for has the potential to reach the 'sweet spot' for mobile phones."

The XPERIA X1 features include the following:

o Unique arc slider with wide-pitch, easy-to-use QWERTY keyboard, 3-inch clear wide VGA display and high-quality high-finish metal body

o Windows Mobile, HSDPA/HSUPA and Wi-Fi(TM) support so customers can enjoy their favorite entertainment and work efficiently on the move

o XPERIA(TM) panels to navigate Web, multimedia and other applications with the tip of a finger

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

Source: Microsoft Corp.

CONTACT: Weber Shandwick, +1-425-452-5400, usmcb@webershandwick.com, for Microsoft Corp. Web site: http://www.microsoft.com/

If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass on Microsoft's corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft's Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/presspass/contactpr.mspx.
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