2007 Microsoft Office Demo and Opportunities Presented by: Rita Alexandrou

169M Consumer and SMB PCs forecasted to ship in % 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

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

Introducing Office Home & Student 2007 and Office Ultimate 2007 New second chance revenue opportunity with single Microsoft Office business image Increase hardware sales with Windows Vista and Microsoft Office capabilities Drive growth with new Microsoft Office offerings 4 * Office Professional Plus 2007 is only available through Volume Licensing.

Volume Licenses 2007 Office Segment SKU Plan NEW

2007 Office OEM SKU Line-Up Office Home and Student Office Basic* Office Small Business Office Professional Office Ultimate Word 2007   Excel® 2007   PowerPoint® 2007  OneNote® 2007  Outlook® 2007  Outlook® 2007 with Business Contact Manager  Publisher 2007  Access 2007  Groove® 2007  InfoPath® 2007  Communicator 2007**  ** Communicator will be available at a later date. NEW

Driving Demand Enabling Greater Profitability New PC and installed base opportunity Breakthrough Products New Programs Market Changes Investing In OEM

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. MICROSOFT OFFICE READY PARTNER BENEFITS Improve your ability to compete with unified licensing and offers Capture missed revenue opportunity with free 60-day 2007 Microsoft Office trial Single Business master image creates operational simplicity Capturing Unmet Demand for Microsoft Office on a new PC 8 * Source: Microsoft Research 2006

Step 1 Get the Microsoft Office Preinstallation Kit from your Disti Step 2 Order 2007 Microsoft Office DSP medialess licenses Step 3 Sell the licenses at point of sale Step 4 If no sale, capture after-market revenue by offering ‘Office Ready’ PCs Post-PC Sale Trial Reseller /SBC OEM PC Sale Distributor How to Sell 2007 Microsoft Office Here’s how it works 9

System Builders must obtain the pre-installation kit separately from the license Through the end of March, we will have a promotional price of $0* After the promotional period, the price for the kit 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 Pre-Installation Kit to start selling 2007 Microsoft Office 10

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. Pre-installation Kit Components 11

Product Packaging For support options for this product, please see This package contains a product key that will allow you to activate the full version of one of the following three Office 2007 suites: Professional, Small Business or Basic, that has been pre-installed on your Office Ready PC. Ask a sales representative if your computer has Microsoft Office Ready 2007 preinstalled and can use this product. The key will not activate volume license or other boxed copies of 2007 Microsoft Office suites. This product does not contain any discs that can be used to install software on a PC. Important: You must accept the terms for this license before you use the software. To read the license terms, go to Activation by phone or Internet is required (toll charges may apply). If you do not accept the license terms, you should promptly return this media-less license kit to your place of purchase for a refund or credit before opening. * License must be purchased within 90 days of PC. For use only with a new* PC with Microsoft Office Ready preinstalled. Certificate of Authenticity This label indicates that this packaging contains a genuine Microsoft license. If the label is missing, or appears tampered with visit Microsoft Office Professional 2007 Microsoft Corporation One Microsoft Way Redmond, WA 98052, USA Copyright notice: © 2006 Microsoft Corporation. Trademark notice: Microsoft is a registered trademark of Microsoft Corporation in the United States and/or other countries. *If you purchased your PC and this media-less license kit within 90 days of each other, you are eligible for backup recovery discs. You have one year from the purchase of this 2007 Microsoft Office media-less license kit to redeem the backup discs. To acquire backup discs, you will need to pay for shipping and handling costs and provide copies of the dated receipts for the new PC and this license. Costs for shipping and handling may vary by country. See for details. Recovery discs are available but not included in this package.* Recovery discs are available but not included in this package NO MEDIA Recovery media available Office Ready PCs Only

To activate your copy of Microsoft Office Professional 2007, please use the product key located on the certificate of authenticity below To acquire backup discs, follow instructions on Product Key Place your separately acquired backup discs here DO NOT DISCARD THIS CASE! The Certificate of Authenticity contains the product key needed to activate your preinstalled copy of Microsoft Office Professional 2007

Customers can go to to receive their recovery media directly from Microsofthttp:// 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 pre-installation kit Recovery Media 14

How customers redeem backup media First NameLast Name Address City, State ZIP (Please select your country) v PC Purchase Date (from receipt) Microsoft Office Purchase Date (from receipt) Product Key XXXXX-XXXXX )We check to see if the Product Key is valid and has not been used 2)The PC Purchase Date and Office Purchase date are within 90 days If Both are OK, the user gets the next page, otherwise, a rejection page At “NEXT,” we do all the checking and validation 15

What’s on the Pricelist? Microsoft Office OPK Master Kit Microsoft Office Ready OPK Master Kit Microsoft Office 2007 Ultimate OPK Master Kit 2007 Office Medialess License Kit Microsoft Office 2007 Basic* Microsoft Office 2007 Small Business* Microsoft Office 2007 Professional* Microsoft Office 2007 Home & Student Microsoft Office 2007 Ultimate Microsoft Office 2003 (with media) Microsoft Office 2003 Basic Microsoft Office 2003 Small Business Microsoft Office 2003 Professional *Expect top 2-3 OEMs to have branded media-less 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. *Expect top 2-3 OEMs to have branded media-less 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.

Increase customer satisfaction by pre-installing Microsoft Office Improve your ability to compete with unified Microsoft Office licensing and offers Recover lost revenue with free 60-day trial New Partner Opportunities Key Takeaways: 2007 Microsoft Office 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 Pre-installation kit required to sell One Microsoft Office Ready image for 3 business SKUs Microsoft provides support for Microsoft Office 17

Driving Demand Enabling Greater Profitability New PC and installed base opportunity Breakthrough Products New Programs Market Changes Investing In OEM

Office Genuine Advantage OGA makes customers aware of the value and benefits of using genuine Microsoft Office software. A part of Microsoft’s Genuine Software Initiative, OGA is a program for creating preference for genuine Microsoft Office software. OGA helps customers more easily validate the authenticity of their Office software.

Pilot to Worldwide Rollout Rollout – End of 2006 Languages: English becomes mandatory Offers: Link to authorized partners or Microsoft for purchase at regular prices Discounted legalization offer Complimentary offer continued Value Added Genuine Content: OCTOBER Identified Download Center content JANUARY Office Update Office Online Templates Calendar Print Application for Outlook Pilot – April, 2006 Languages: Seven English is by opt-in Offers: Complimentary offer Link to authorized partners or Microsoft for purchase at regular prices Value Added Genuine Only Content: Identified Office downloads gated on Download Center Local offer via Download Center

The OGA Experience Customers will experience OGA in the following ways: Microsoft Genuine Web site ( This site provides information on Microsoft’s Genuine Advantage program and on OGA. It is also a portal for validating the authenticity of Office software. Microsoft Office 2007 suites These suites require successful OGA validation when the customer tries to access Office Online templates in Access, Excel, PowerPoint, Publisher, or Word. Microsoft Download Center Specially identified downloads such as Office Add- ins require successful OGA validation. Office Update Successful OGA validation is necessary to use this quick and convenient service.

Legalization Options Customer choices for obtaining genuine Microsoft Office: Contact the reseller. OGA provides a report with reason for validation failure and directs customer to reseller to seek redress. Take advantage of the genuine Office legalization offer directly from Microsoft. Professional; Small Business; Student & Teacher Edition: File for a complimentary replacement. Available free of cost to customers who provide high-quality counterfeit media and proof of purchase and who file a counterfeit report. Purchase preinstalled with new hardware. Purchase via Microsoft Volume Licensing Program. Buy the retail finished package product.

Makes it easier to identify and avoid counterfeit copies Gives them confidence and peace of mind that the software is authentic and properly licensed Makes it possible to download ongoing enhancements and updates Gives them access to hundreds of document templates to deliver better results faster Supports honest partners; makes it easier to compete Enhances your image and reputation as a reputable reseller Gives them convenient access to updates Genuine Office Advantage Benefits

Academic Reseller Program Products: All Vista and Office Academic Products to be included Participation: Registration is available to all Enforcement: Heavy weight enforcement program via mystery shopping Full details to be released soon: to be implemented with the release of 2007 Microsoft Office System and Vista

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

Top 5 Reasons to Buy Microsoft Office For Small Business New User Interface with task-based toolbars and menus Find and use the features you need with ease 1 1 Microsoft Office Outlook 2007 To-Do bar with integrated task and calendaring New search functionality, integrated with Windows Vista Microsoft Office Outlook 2007 To-Do bar with integrated task and calendaring New search functionality, integrated with Windows Vista Manage time and tasks more efficiently 2 2 Office Outlook 2007 with Business Contact Manager – track, view, and access customer information in one place Manage customer and prospect information in one place 3 3 Microsoft Office Publisher 2007 walks you through the process of creating and publishing materials for print, , and Web sites Create, publish, and manage designer-quality publications in-house 4 4 Microsoft Office Word 2007, including the new QuickFormats and Live Preview Office PowerPoint 2007 with extensive library of slide layouts and new tools helps create powerful charts, diagrams, and tables Microsoft Office Word 2007, including the new QuickFormats and Live Preview Office PowerPoint 2007 with extensive library of slide layouts and new tools helps create powerful charts, diagrams, and tables Create professional- looking documents and presentations in less time

Top 5 Reasons to Buy Microsoft Office For Consumers New user interface with task-based toolbars and menus Find and use the features you need with ease 1 1 Improved Help functions and tool tips New search functionality, integrated with Windows Vista Improved Help functions and tool tips New search functionality, integrated with Windows Vista Easily find the help you need to get started 2 2 Office Word 2007 and Office PowerPoint 2007, including the new QuickFormats and Live Preview Have better control and predictability when formatting documents 3 3 Office PowerPoint 2007 with extensive library of slide layouts and new tools helps create powerful charts, diagrams, and tables Create high-quality documents you can be proud of 4 4 Office Excel 2007 includes a new collection of predefined styles, Microsoft Office art, and integrated graphics Visualize key data trends using conditional formatting

READINESS CENTERS Windows Vista Small Business Server 2003 R2 Office