Top 7 Things to Know about Activation and Genuine Software with Windows 7 For computers with perpetual licensing obtained through Microsoft volume licensing program, Windows Activation Technologies provides assurance that the software is reliable, is fully supported by Microsoft and its partners, and is more easily managed with volume activation tools and services which assist in license compliance. Using genuine software also helps protect against the security threats and increased costs of ownership that can be introduced by counterfeit software. Activation, an integral and required aspect, is an authentication process that helps conform use of genuine software Multiple activation methods; online, offline and customer-hosted Basics 1 Experience 4 Transparent - requires no end-user action Notification experience for non-genuine systems Persistent desktop reminders Black desktop Security 5 Policies 2 Helps protect from the risks associated with counterfeit software, such as spyware, malware and viruses Use of non-genuine could result in financial penalties and reputational risk Privacy 6 Activation is designed to help protect user privacy Data sent to Microsoft is not traceable back to the computer or user Value 3 Helps ensure that the software is reliable Supported by Microsoft and its partners Improved management and protection Assists with license compliance No adverse impact to gov’t functions, critical infrastructure, national security or public safety No reduced functionality that limits user access to the Internet, applications, data or security updates Technology 7 Secure and flexible IT Pro-managed activations No dedicated resources required Integrated into deployment ©2009 Microsoft Corporation. All rights reserved.

How Genuine Software Can Impact Your Business Perception that risk is low with non-genuine software Notion that product activation doesn’t matter Inconsistent asset management and policy enforcement Insufficient understanding of licensing policies terms Perception that genuine costs more Source: Studies conducted by IDC and sponsored by MSFT ₁ Source: Studies conducted by IDC and sponsored by MSFT ₂ Source: SoftSummit – 2008 Key Trend Survey ₃ Business Impacts IDC puts your odds at 1 in 4 of getting malware from the same place you get unlicensed software ₁ Cost to recover from malicious software on a single workstation may be over $1000 per occurrence ₂ Midsize companies with non-genuine software are 73% more likely to have loss or damage of sensitive data and computer failures lasting 24+ hours ₃ Supportability  Requires low deployment/ management effort  Ensures full Microsoft / partner technical assistance Manageability  Avoids key leakage and the need to reactivate deployed systems  Integrated into deployment process and tools License Compliance and Management  Provides access to upgrades (Enterprise Edition) and contract options  Helps avoid penalties, reputation damage, business interruption Assurance  Helps protect against counterfeit  Provides confidence software is genuine Reduced TCO Assurance Supportability Manageability LicenseCompliance Reasons Why Customers May Use Unlicensed Or Non-Genuine Software