REDMOND, Wash. - July 17, 2012 - Under a December 2009 decision of the European Commission, Microsoft is required to display a “Browser Choice Screen” (BCS) on Windows PCs in Europe where Internet Explorer is the default browser.

We have fallen short in our responsibility to do this. Due to a technical error, we missed delivering the BCS software to PCs that came with the service pack 1 update to Windows 7. The BCS software has been delivered as it should have been to PCs running the original version of Windows 7, as well as the relevant versions of Windows XP and Windows Vista. However, while we believed when we filed our most recent compliance report in December 2011 that we were distributing the BCS software to all relevant PCs as required, we learned recently that we’ve missed serving the BCS software to the roughly 28 million PCs running Windows 7 SP1.

While we have taken immediate steps to remedy this problem, we deeply regret that this error occurred and we apologize for it.

The Commission recently told us that it had received reports that the BCS was not being displayed on some PCs. Upon investigating the matter, we learned of the error. We promptly notified the Commission of what we had found and took the following steps:

• Distributed the BCS: Within one business day of discovering the problem we developed a software fix and began testing it. This was on July 2. The next day we began distributing the BCS software to the PCs running Windows 7 SP1 which we had missed, and we ensured it is available for all new PCs with Windows 7 SP1. We expect to substantially complete distribution of the BCS software to the PCs we initially missed by the end of the week.

• Outside Investigation: We retained experienced outside counsel to conduct a formal investigation of precisely how the technical error occurred and to make suggestions to avoid any such compliance problems in the future. They have already interviewed Microsoft employees and are now following up with document review. They will continue to have access to all of our employees and documents and we have asked them to prepare a full report when their work is complete. They will provide this report to the European Commission.

• Offered to Extend our Compliance Period: Since we have fallen short in our responsibility to display the BCS, we have offered to extend the time during which we are obliged to do so by an additional 15 months. We understand that the Commission will review this matter and determine whether this is an appropriate step for Microsoft to take. We understand that the Commission may decide to impose other sanctions.

The BCS provides an easy way for users to choose any browser. As agreed with the Commission in 2009, Microsoft uses our Windows Update service to send the BCS software to Windows-based PCs. Once installed, the BCS software checks to see if Internet Explorer is the default browser and, if it is, the BCS is displayed to the user. The Windows Update system uses “detection logic” to determine which software updates (such as the BCS) to distribute to which PCs. The detection logic for the BCS software was accurate when we began to distribute it in early 2010, and the BCS software was delivered as it should have been. Unfortunately, the engineering team responsible for maintenance of this code did not realize that it needed to update the detection logic for the BCS software when Windows 7 SP1 was released last year. As a result of this error, new PCs with Windows 7 SP1 did not receive the BCS software as they should have.

Since most computer users run earlier versions of Windows, we estimate that the BCS software was properly distributed to about 90% of the PCs that should have received it. We recognize, however, that our obligation was to distribute the BCS to every PC that should have received it. Therefore, we have moved as quickly as we can to address the error and to provide a full accounting of it to the Commission.

REDMOND, Wash. — July 17, 2012 — Nobody wants to spend more money than necessary to fill the gas tank, and drivers want to get the most out of each gallon. Making efficient, customized travel plans is now easier than ever with today’s launch of Microsoft Streets & Trips 2013, the new edition of the popular trip-planning software.

Current users of Streets & Trips will find the new 2013 version offers a sleek and clean look in high contrast designed for easier viewing, updated maps of the United States and Canada — including 150,000 new miles of roads since the 2011 version was released — and more than 2.5 million points of interest. Longtime fans will also find they can now turn all pushpin names on or off with a single click, and they can create larger drive times for more flexibility in trip planning.

“A new feature people are really going to love is the online ratings and reviews. Customer ratings and reviews on restaurants, hotels and more take the guesswork out of deciding where to go,” said Larry Petersen, software design engineer at Microsoft Corp. “Streets & Trips 2013 adds upgrades our customers have asked for, including 600,000 more points of interest than the previous version.”

The 2013 version of Streets & Trips is designed to help travelers plan the perfect trip start to finish — generate maps and directions, customize with start and stop times, and add notes such as reservation numbers or operating hours — all without an Internet connection.

For many truckers, RVers, family vacationers and other motorists, laptops have become an essential travel accessory. Microsoft Streets & Trips helps them efficiently plan and customize their travel before they hit the road. Whether the day calls for visiting an amusement park, winery, casino, national park or museum, there is a stop along the way for everyone when using Streets & Trips. One-click route optimization provides the most efficient route, and a fuel consumption manager helps consumers budget gasoline costs. Then, while on the road, Streets & Trips on a laptop helps travelers find necessities such as ATMs, hotels, auto services, restaurants and more, with no Internet connection required, helping plan for — or discover — plenty of fun and useful stops along the way.

“Microsoft Streets & Trips helps travelers tailor personalized itineraries with as much or as little detail as they prefer,” said Lori Stock, group product marketing manager for Streets & Trips at Microsoft. “It’s a great travel companion and easy-to-use laptop tool that really helps our customers’ travel inspirations become a reality. Everyone will appreciate how the software takes so many hassles and headaches out of the road trip while providing personalized options for creating memorable experiences.”

Availability

Microsoft Streets & Trips is available for purchase today, online at the Microsoft Store (http://www.microsoftstore.com) for an estimated retail price of US$39.99. Microsoft Streets & Trips with GPS Locator is available for US$69.99.** Consumers can give Streets & Trips a test drive by downloading a free 14-day trial version at http://www.microsoft.com/streets/travel.

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

* The NPD Group/U.S. Retail Tracking May 1999–March 2012.

** Estimated retail price. Actual retail price may vary.

For more information on Microsoft Streets & Trips:

http://www.microsoft.com/streets/travel

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers and titles were correct at time of publication, but may 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/news/contactpr.mspx.

SAN FRANCISCO — July 16, 2012 — Today, Microsoft Corp. CEO Steve Ballmer unveiled the customer preview of the new Microsoft Office, available at office.com/preview. The next release features an intuitive design that works beautifully with touch, stylus, mouse or keyboard across new Windows devices, including tablets. The new Office is social and unlocks modern scenarios in reading, note-taking, meetings and communications and will be delivered to subscribers through a cloud service that is always up to date.

“We are taking bold steps at Microsoft,” Ballmer said at the press conference in San Francisco. “The new, modern Office will deliver unparalleled productivity and flexibility for both consumers and business customers. It is a cloud service and will fully light-up when paired with Windows 8.”

Office at Its Best on Windows 8

• Touch everywhere. Office responds to touch as naturally as it does to keyboard and mouse. Swipe your finger across the screen or pinch and zoom to read your documents and presentations. Author new content and access features with the touch of a finger.

• Inking. Use a stylus to create content, take notes and access features. Handwrite email responses and convert them automatically to text. Use your stylus as a laser pointer when presenting. Color your content and erase your mistakes with ease.

• New Windows 8 applications. OneNote and Lync represent the first new Windows 8 style applications for Office. These applications are designed to deliver touch-first experiences on a tablet. A new radial menu in OneNote makes it easy to access features with your finger.

• Included in Windows RT. Office Home and Student 2013 RT, which contains new versions of Word, Excel, PowerPoint and OneNote applications, will be included on ARM-based Windows 8 devices, including Microsoft Surface.

Office I s in the C loud

• SkyDrive. Office saves documents to SkyDrive by default, so your content is always available across your tablet, PC and phone. Your documents are also available offline and sync when you reconnect.

• Roaming. Once signed in to Office, your personalized settings, including your most recently used files, templates and even your custom dictionary, roam with you across virtually all of your devices. Office even remembers where you last left off and brings you right back to that spot in a single click.

• Office on Demand. With a subscription, you can access Office even when you are away from your PC by streaming full-featured applications to an Internet-connected Windows-based PC.

• New subscription services. The new Office is available as a cloud-based subscription service. As subscribers, consumers automatically get future upgrades in addition to exciting cloud services including Skype world minutes and extra SkyDrive storage. Subscribers receive multiple installs for everyone in the family and across their devices.

Office I s S ocial

• Yammer. Yammer delivers a secure, private social network for businesses. You can sign up for free and begin using social networking instantly. Yammer offers integration with SharePoint and Microsoft Dynamics.

• Stay connected. Follow people, teams, documents and sites in SharePoint. View and embed pictures, videos and Office content in your activity feeds to stay current and update your colleagues.

• People Card. Have an integrated view of your contacts everywhere in Office. The People Card includes presence information complete with pictures, status updates, contact information and activity feeds from Facebook and LinkedIn accounts.

• Skype. The new Office comes with Skype. When you subscribe, you get 60 minutes of Skype world minutes every month. Integrate Skype contacts into Lync and call or instant message anyone on Skype.

Office U nlocks N ew S cenarios

• Digital note-taking. Keep your notes handy in the cloud and across multiple devices with OneNote. Use what feels most natural to you — take notes with touch, pen or keyboard, or use them together and switch easily back and forth.

• Reading and markup. The Read Mode in Word provides a modern and easy-to-navigate reading experience that automatically adjusts for large and small screens. Zoom in and out of content, stream videos within documents, view revision marks and use touch to turn pages.

• Meetings. PowerPoint features a new Presenter View that privately shows your current and upcoming slides, presentation time, and speaker notes in a single glance. While presenting, you can zoom, mark up and navigate your slides with touch and stylus. Lync includes multiparty HD video with presentations, shared OneNote notebooks and a virtual whiteboard for collaborative brainstorming.

• Eighty-two-inch touch-enabled displays. Conduct more engaging meetings, presentations and lessons, whether in person or virtually, with these multitouch and stylus-enabled displays from Perceptive Pixel.

While the full lineup of offerings and pricing plans will be announced in the fall, Ballmer discussed three new Office 365 subscription services. When available, each new subscription offer will include the new 2013 editions of the Office applications — Word, Excel, PowerPoint, OneNote, Outlook, Publisher and Access. In addition, subscribers will receive future rights to version upgrades as well as per-use rights across up to five PCs or Macs and mobile devices. The three new editions will be the following:

• Office 365 Home Premium — designed for families and consumers. This service also includes an additional 20 GB of SkyDrive storage and 60 minutes of Skype world minutes per month.

• Office 365 Small Business Premium — designed for small businesses. This service also includes business-grade email, shared calendars, website tools and HD webconferencing.

• Office 365 ProPlus — designed for enterprise customers who want advanced business capabilities and the flexibility to deploy and manage in the cloud.

The customer preview is available at office.com/preview.

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

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers and titles were correct at time of publication, but may 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/news/contactpr.mspx.

SAN FRANCISCO — July 16 , 2012 — Microsoft Corp. will announce news live from San Francisco via webcast on July 16 at noon PDT:

Microsoft Announcement

When : Monday, July 16, at noon PDT

What: News from Microsoft

Who: Microsoft CEO Steve Ballmer will share the news.

Where: Live via webcast at http://www.microsoft.com/en-us/news (available for

viewing in the following languages):

• Chinese (Mandarin)

• English

• French

• German

• Italian

• Korean

• Portuguese (Brazilian)

• Russian

• Spanish (Latin American)

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers and titles were correct at time of publication, but may 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/news/contactpr.mspx.