Tony Madigan Director, Dynamics Pricing & Licensing

Dynamics Pricing & Licensing: Review of FY07 Q1: –Business Ready Licensing –Software License Terms –Product Line and Edition Transitions Q2: –Business Ready Licensing (Adjustments) –Dynamics CRM on Dynamics ERP pricelists Q3: –Multi-Site Agreement –License Model Transitions Q4: –Dynamics Client for Office –Global Volume Agreement (Pilot)

Pricelists to Programs: BRL to MA to GVA Forecast based Top Strategic Customers Most attractive user volume discount Upfront Purchase 25% + Annual Purchase commitments + Current on BREP GVA Transaction based Large Customers wanting to aggregate multisite purchases Minimum Upfront Purchase - 76 points Attractive user volume discount due to aggregation 2 year transactional contract + Current on BREP MA Transaction based Standard List Pricing User Volume discount per site Minimum purchase threshold - 1 user First year BREP compulsory BRL

What does Business Ready Licensing offer to customers? Value for Customers Providing customers with more solution value at a lower entry point Addressing "11th user" and multi-site barriers Concurrent user structure extends value to more employees Simplicity Simplified packaging, pricing and enhancement terms and conditions No user count restrictions Greater transparency Expanded Deployment Options More competitive for multi-site and divisional implementations Business Essentials Business Essentials Advanced Management Advanced Management Enterprise

MA User Tiers * Qualifying PointsBRL Tier DFrom 51 to 7525% EFrom 76 to 16035% FFrom 161 to 50040% GFrom % Multi-Site Agreement (MA) will enable our customers the ability to purchase and deploy Dynamics BRL solutions across multiple sites. *- Tier D available in emerging markets (APAC, GCR & LATAM) MA Contract is signed with MS Multiple partners leverage over term of MA Contract Partner B Partner A Customer SSP-MBS MA Contract MA is based on points which accumulate across customer sites 1 foundation pack = 1 point 1 user = 1 point Points determine MA tier and tiers E, F, G map to BRL discounts Foundation Pack discounted Term is 2yr + 1yr option

GVA User Tiers Qualifying PointsBRL Tier FFrom 161 to 50040% GFrom 501 to % HFrom 1001 to % IFrom % Global Volume Agreement (GVA) will enable our customers the ability to purchase and deploy Dynamics BRL solutions across multiple sites. GVA Contract is signed with MBS Lighthouse teams Partner B Partner A Customer Lighthouse GVA Contract GVA is based on forecasted points which accumulate across customer sites 1 foundation pack = 1 point 1 user = 1 point 25% upfront commitment Annual Purchase Commitments Points determine GVA tier and tiers F to I map to BRL discounts Foundation Pack discounted Term is 3 Years

How MA & GVA works Global Volume Agreement (GVA) Same as BRL with the following adjustments: 161 point minimum forecast commitment 25% upfront purchase commitment Annual purchase commitments BRL Tier discount applicable to AME purchases Allows aggregation across sites (customers can thus obtain a higher user break tier) Three year contract Foundation Pack gets same discount as BRL users Tier discount & AME discount reflected in BREP Note: the country of customer site location = country price list used for both BRL & MBL Multi-site Agreement (MA) Same as BRL with the following adjustments: 76 point minimum on first batch of orders (ordered simultaneously) Allows aggregation across sites (customers can thus obtain a higher user break tier) Two year contract Foundation Pack gets same discount as BRL users Tier discount reflected in BREP

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