1. Growing your business with the 2007 Microsoft Office system

2. 169M Consumer and SMB PCs forecasted to ship in 2007 10% year-over-year growth of Consumer and Small Business PCs Untapped opportunity to sell more Microsoft Office on a new PC Breakthrough Products New Offerings Combined Launch Driving Demand and excitement Enabling Greater Profitability New PC and installed base opportunity The 2007 Office release delivers new selling opportunities 2

3. Work more efficiently Manage customer information in one place Promote your business Analyze your business information Create great looking documents Easily find commands Work with confidence and security Manage information Stay Safer, More secure, and Connected The “Better Together” story Microsoft Office and Windows Vista™ 3

4. Introducing Office Home & Student 2007 and Office Ultimate 2007 Announcing the NEW Microsoft Office Ready program Increase hardware sales with Windows Vista and Microsoft Office capabilities More value for midsized businesses with new Office Professional Plus 2007* Drive growth with new Microsoft Office offerings 4 * Office Professional Plus 2007 is only available through Volume Licensing.

5. VOLUME LICENSING best better good 5 Microsoft Office Segment SKU Plan For Consumer For Small Businesses For Medium and Large Businesses Office Ready is for small businesses

6. Office Home and Student 2007 Office Basic 2007 Office Small Business 2007 Office Professional 2007 Word 2007 ●●●● Excel® 2007 ●●●● PowerPoint® 2007 ●●● OneNote® 2007 ● Outlook® 2007 ● Outlook® 2007 with Business Contact Manager ●● Publisher 2007 ●● Access 2007 ● 2007 Microsoft Office OEM SKUs 6

7. CHALLENGE 2006 research shows that 45% of new Small Business PCs are purchased without Microsoft Office* Half of those customers install more expensive FPP within 2 weeksOPPORTUNITY Small Businesses are more satisfied with both their PC purchase decision and with their PC reseller when Microsoft Office is pre-installed Customers want Windows Vista and 2007 Office preinstalled on a new PC Over 50% of Small Businesses who did not purchase Microsoft Office preinstalled would prefer a free 60-day trial of Microsoft Office offered to them. Capturing Unmet Demand for Microsoft Office on a new PC 7 * Source: Microsoft Research 2006

8. What’s the SameWhat’s NewPartner Benefits Distributor buys Microsoft Office license from Authorized Replicator Reseller/SBC buys Microsoft Office from Distributor Reseller/SBC sells Microsoft Office with new PC and makes profit SBC preinstalls from master image(s) License no longer includes media Branded OEMs to preinstall Microsoft Office Single business image Microsoft Supports Microsoft Office Operational simplicity with common licensing and single business image Second chance revenue opportunity with free 60 day trial Microsoft supports Microsoft Office Post-PC Sale Trial Reseller /SBC OEM PC Sale Distributor Microsoft Office Ready Overview 8

9. Step 1 Order 2007 Microsoft Office medialess license kits Step 2 Sell the licenses at point of sale Step 3 If no sale, capture after-market revenue by offering Office Ready PCs Post-PC Sale Trial PC Sale Reseller Multinational Manufacturer Distributor Microsoft Office Ready for Resellers Here’s how it works 9

10. Step 1 Order the Microsoft Office OPK Master Kit (OPK) Step 2 Order 2007 Microsoft Office medialess license kits Step 3 Install the Microsoft Office OPK Master Kit onto the PC’s you are building Step 4 Sell the licenses at point of sale Step 5 If no sale, capture after-market revenue by offering Office Ready PCs Post-PC Sale Trial PC Sale Microsoft Office Ready for System Builders Here’s how it works 10 System Builder White Box PC Multinational PC Distributor Microsoft Office OPK Master Kit

11. System Builders must obtain the OPK Master Kit separately from the license Through the end of March we will have a promotional price to AR of $0* After the promotional period, the price for the OPK goes to $250+ COGS The pre-installation kit is now available. Order today. * Cost of the Microsoft Office OPK Master Kits will be royalty-free, but will include COGS Get a Microsoft Office OPK Master Kit to start selling 2007 Microsoft Office 11

12. Two OPK Master Kits, including the following components: Microsoft Office Ready OPK Master Kit  Office Ready 2007 master image (2 CDs)  Office Home and Student 2007 master image  OPK Tools CD  Getting Started Pre-Installation Flyer Microsoft Office Ultimate 2007 OPK Master Kit (available Spring 2007)  Office Ultimate 2007 master image DVD  OPK Tools CD Please note: The two consumer images, Office Home and Student 2007 and Office Ultimate 2007, do not convert to trial mode. OPK Master Kit Components 12

13. Microsoft Office Price List Microsoft Office OPK Master Kit Microsoft Office 2007 OPK Master Kit 2007 Microsoft Office Medialess License Kit (MLK) Microsoft Office Basic* 2007 Microsoft Office Small Business* 2007 Microsoft Office Professional* 2007 Microsoft Office Home & Student 2007 Microsoft Office Ultimate 2007 Microsoft Office 2003 (with media) Microsoft Office Basic Edition 2003 Microsoft Office Small Business Edition 2003 Microsoft Office Professional Edition 2003 *Expect top 2-3 OEMs to have branded medialess license kits. These kits will not be technologically tied to the PC. **2003 BIOS Lock will remain in channel through FY2007. There will be no 2007 Office BIOS Lock product. 13

14. Product Packaging for the 2007 Microsoft Office Medialess License Kit 14

15. REMOVE THIS CARD Product key is behind this card Thank you for licensing this 2007 Microsoft Office suite Your 2007 Microsoft Office software includes technological measures for copy protection. You will have limited use of the software if you do not fully comply with the product activation procedures. Product activation procedures and Microsoft's privacy policy will be detailed during initial launch of the software and may be completed by Internet or telephone (toll charges may apply). To activate, follow the onscreen instructions displayed when you launch the software. If you do not activate within 25 launches, the software will revert to reduced functionality mode. In reduced functionality mode you will, for example, be able to view existing documents, but you will no longer be able to create new or edit existing documents. The 25-character product key required to activate your preinstalled software is found on the Certificate of Authenticity located behind this card. REMOVE THIS CARD Example only. Real product key is behind this card. Redeeming Back up Media If you would like to acquire a backup copy of the 2007 Microsoft Office suite you purchased, please go the following website for media redemption information: http://www.microsoft.com/office/backup. You will need receipts from both your PC purchase and your purchase of this license. The receipts must be dated within 90 days of each other to be eligible for backup media. You will also need to fill out the appropriate forms on the web site and pay shipping and handling costs as specified on the site.

17. Customers can go to http://www.microsoft.com/office/backup to receive their recovery media directly from Microsoft, ~$9.00 in the North America for S&Hhttp://www.microsoft.com/office/backup Beginning in the Spring, customers will be able to download a copy of their media from microsoft.com Customers can use the Windows Vista Business backup feature to create a system backup Local OEM can reinstall Microsoft Office onto the machine with the OPK kit Recovery Media 17

18. Improve your ability to compete with unified Microsoft Office licensing and offers Recover lost revenue with free 60-day trial Increase customer satisfaction by preinstalling product New Partner Opportunities Microsoft Office Ready Summary Maximize Microsoft Office sales opportunity on new business PCs Give customers an opportunity to try and buy premium 2007 Microsoft Office SKUs Better alignment between channel offerings Key Program Details License only includes key, no media Master image required for pre-installation One Microsoft Office Ready image for 3 business SKUs Microsoft provides support for Microsoft Office 18

19. Five Great Reasons to Sell the 2007 Microsoft Office System Compelling new features and capabilities help drive Microsoft Office sales on new PCs Office Home and Student 2007 helps you compete better with improved consumer/business differentiation Office Ready delivers better customer experiences out-of- the-box and helps you recapture lost revenue through trial Simplified licensing and inventory management across both branded OEM and whitebox Office Ready PCs Engage with customers to drive new hardware sales through compelling capabilities and solutions 1 1 2 2 3 3 4 4 5 5 19

20. © 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION. 20