1. Standard Sales Presentation Partner Forum October 2008 Kelvin Ho Small, Midmarket, Partners & Solutions Director kelvinho@microsoft.com 3

2. Agenda Quarterly Business Update – Kelvin Ho E Government – Chris Roberts Dorothy Haggard The business of Government – doing business from an ICT perspective with South African Government - Dorothy Haggard

3. Q1 BUSINESS REVIEW 3

4. Rand Tumbles …. Finance Week, 23 March 2008 The Rand tumbled to a three year low following worse than anticipated current account deficit CPIX at double digits as era of low inflation ends Business Day, 24 April 2008 Another interest rate hike looms when Bank meets in June. INFLATION rocketed by more than 10% last month, scaling a new five year peak, that was well above expectation Confidence at new low as SA feels the pinch Business Day, 18 February 2008 CONFIDENCE in the economy and business prospects fell to a near five- year low in February, hammered by rising inflation, higher interest rates and power cuts, a global marketing and social research firm said yesterday. Rising Bad Debt risk to companies, households Business Day, 25 April 2008 Business failures up 23%; consumer debt at 77,6% of disposable income. Company failures rose an annual rate of 23% last month, official data showed yesterday, while non performing loans surged 56%in the final quarter

5. Q1 Update Challenging September, external factors impacting at the same time – which has resulted into a flow over into Q2 Focus is on increasing Market Share in these volatile and uncertain times 5

6. 6 WIN Customers Windows Server Committed License Growth Windows Server Share of Internet Web Servers Office Unmanaged Licenses Enterprise Search Design Wins (incl. FAST) Notes Desktop Switchers Growth in fully allocated Revenue (SMSP) Performance Point Customer Adds Dynamics ERP Customer Adds Windows Mobile Connected Units Education Units Growth Commercial Active Windows Live IDs MDOP Attach to EAs DRIVE Satisfaction NSAT Overall Unmanaged NSAT Desktop Deployments - Vista Desktop Deployments - Office Innovate Developers Targeting Microsoft Client Platform Next Generation Client Runtime Deployment Voice Enabled Customers Top Stories – Citizenship & Innovation GROW the Business Net Revenue VTB Contribution Margin VTB SQL Server Billed Revenue Growth Systems Centre Management Attached to Windows server licenses Virtualisation: Server management Suite Enterprise edition billed revenue Enterprise CAL Suite Billed Revenue Growth Security Billed Revenue Growth Dynamics Adjusted Revenue VTB SMSP Breadth Open Billed Revenue Growth BOS Attach for Field OEM MCS Enterprise Service Line Offerings adoption PEOPLE WHI Business Scorecard

7. Key Takeaways Leadership announcements Campaigns – out over the next two weeks Upgrade the desktop Security and Reliability Campaign – Wave 2 Genuine Software Initiative Business Software Alliance 7

8. © 2007 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.