TABLET PC ARRIVES BACKED WITH BROAD INDUSTRY SUPPORT

Microsoft Launches Next Generation Mobile PC, Marking Major PC Industry Milestone

November 7, 2002

For Immediate Release

 Toronto, Ontario - The long-held industry vision of mainstream pen-based computing today became a reality as Microsoft Canada Co. - in conjunction with Microsoft Corporation - and a broad range of industry leaders in computer, software and chip manufacturing announced the availability of Tablet PCs and accompanying pen-enabled software. Frank Clegg, President of Microsoft Canada was joined by corporate customers and industry leaders to showcase the capability of the Tablet PC as the evolution of today's notebook PCs. Tablet PCs using Microsoft® Windows® XP Tablet PC Edition operating system combine the full power of Microsoft Windows XP Professional with the ability to use a digital pen in addition to a keyboard or a mouse. The result is a computer that can be used more often, and in more places, than traditional notebook PCs.

"The Tablet PC is a major evolution in the way we work with information," said Frank Clegg, President of Microsoft Canada. "It is a great example of a new technology that is not only more powerful, but more flexible and adaptable to how people really work. The versatility and mobility of the Tablet PC will shift the way we work with information, how we collaborate and use it. This is an exciting phase for mobile computing."

New Hardware, Software Shown
Attendees at the morning launch event were able to view shipping hardware designs from: Acer Canada, Electrovaya Inc., Fujitsu PC Corp., Hewlett-Packard Canada, Motion Computing, Toshiba of Canada ISG, ViewSonic Canada and Xplore Technologies Corp. (see attached document for quotes from these industry leaders). Tablet PCs are available in two primary designs: one features an attached keyboard and can be configured in the traditional laptop "clamshell" mode, and the second uses a variety of detachable keyboard designs in a so-called "slate" form factor. All Tablet PCs are powered by chips optimized for low power consumption and longer life, from either Intel, Transmeta or Via. Tablet PCs will be available at a variety of retailers throughout Canada. Final retail prices are being announced by each manufacturer.

Elliot Katz of Microsoft Canada demonstrated several new software applications for the Tablet PC, all of which highlighted the power of the platform. All Tablet PCs are designed to be a user's primary business PC, recognizing input from a keyboard, mouse or pen. With a Tablet PC and Office XP, users will be able to incorporate the comfort of handwriting into everyday tasks such as creating e-mail, annotating word documents and marking up presentations in PowerPoint® presentation graphics program.

The Tablet PC is backed by industry leaders that have developed applications for the Tablet PC (see attached document for quotes from industry leaders). Below is a list of companies that have developed applications for the Tablet PC.

About the Tablet PC
Microsoft Windows XP Tablet PC Edition enables next-generation personal computers to be optimized for mobility, convenience, reduced weight and comfort. The Tablet PC operating system enables Windows-based applications to take advantage of various input modes, including keyboard, mouse, pen and voice. With software developed and optimized by Microsoft for the new platform, the Tablet PC can function as a sheet of paper. Handwriting is captured as rich digital ink for immediate or later manipulation, including reformatting and editing. This link between the pen input process and a wide range of Windows-based applications will give users new ways in which to collaborate, communicate and bring their PCs to bear on new tasks. Its high-resolution display makes it ideal for immersive reading and rich multimedia applications.

The Tablet PC's full Windows XP capability also will enable it to be a user's primary computer. Utilizing a high-performance x86-compatible chip architecture, the Tablet PC takes advantage of key technology improvements in high-resolution, low-power LCDs; efficient batteries; wireless connectivity; and data storage to deliver a rich set of functionality that adds the dimension of pen input.

ABOUT MICROSOFT CANADA
Established in 1985, Microsoft Canada Co. is the Canadian subsidiary of Microsoft Corporation (Nasdaq "MSFT") the worldwide leader in software, services and Internet technologies for personal and business computing. Microsoft Canada provides nationwide sales, marketing, consulting and local support services in both French and English. Headquartered in Mississauga, Microsoft Canada has 10 regional offices across the country dedicated to empowering people through great software - any time, any place and on any device. Visit Microsoft Canada's web site at www.microsoft.ca

(c)2002 Microsoft Corporation. Microsoft, Powerpoint and Windows are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

To view this press release and other Windows XP Tablet PC Edition information, please go to: http://www.microsoft.ca/tabletpc or http://tabletpc.myhosting.com.

Canadian OEM and ISV Support

Acer Canada
"Over the years, Acer and Microsoft have cultivated a strong strategic relationship. This has allowed us to manifest our shared vision of bringing the most advanced, enhanced, and easy-to-use technology to users across the globe. Acer's TravelMate C100 represents an important moment in the history of computing; a shift from traditional methods of input to the simplicity of writing and speech. It offers users a revolutionary product that is designed for greater business productivity and friendlier interface," said Terry Tomecek, General Manager, Acer Canada.

Alias|Wavefront
"We're excited to work with Microsoft on a common vision for mobile computing," said Doug Walker, President at Alias|Wavefront. "Alias SketchBook Pro ^TM - the compact, fast loading sketching tool transforms the new pen-based Tablet PC into a powerful and mobile digital sketchbook. It lays the groundwork for the new era of Tablet PC digital sketching, allowing anyone to create and modify imagery anywhere their job takes them."

Electrovaya Inc.
"Electrovaya is a leader in mobile power. We are delighted to work with Microsoft on the development of a revolutionary Tablet PC computer called "Scribbler". Scribbler will run for 8 to 16 hours and will provide the highest mobility in the laptop computer and Tablet PC industry," said Sankar Das Gupta, CEO and founder of Electrovaya Inc.

Fujitsu PC Corp.
"The introduction of the Stylistic ST Series Tablet PC represents the culmination of more than a decade-long commitment to pen computing and nearly two years as an active and influential participant in the Microsoft Tablet PC Initiative," said Toshio Morohoshi, President and CEO, Fujitsu PC Corporation. "The Tablet PC promises to revolutionize mobile computing, delivering an unsurpassed level of productivity and performance. We feel our experience within the pen tablet PC marketplace is a major advantage for potential enterprise customers looking to adopt this technology. The Stylistic ST Series Tablet PC reflects our intimate understanding of the form factor down to every detail-from its advanced display technology to its weight balance, heat dissipation and application buttons."

Groove Networks
"There's a great migration occurring from desktop to mobile computing, and the Tablet PC is a logical next step for embracing end-user mobility," said Ray Ozzie, Groove Networks' CEO. "Our support for digital ink complements the original design intent for Groove, which is to support the many ways people need to communicate beyond words, such as a simple sketch, annotations in the margins of document, or by voice when there's a need to convey emotions. The combination of WiFi networks, the Tablet PC and secure, smart applications such as Groove give users the freedom and flexibility to get their jobs done regardless of location, and organizations the ability to reduce their overall coordination costs, without sacrificing security, or control."

Hewlett-Packard Canada
"With the Compaq Evo Tablet PC, HP is continuing its leadership in the design and development of mobile computing devices," said Lloyd Bryant, Vice President and General Manager for the personal systems group at HP Canada. "By working with Microsoft, we can offer the next evolution in mobile computing. The Compaq Evo Tablet PC adds the convenience of paper to the power of a PC in an innovative form factor that offers unprecedented flexibility to move between different business environments."

Intel Canada
"Our research shows that users want the ability to access information easily anytime and from anywhere," said Doug Cooper, Country Manager, Intel Canada. "New innovative form factors such as this Tablet PC, wireless connectivity in the form of 802.11 networks, and microprocessors offering performance and extended battery life will be the key factors driving the industry in 2003. Today's Tablet PC launch combined with the growing number of wireless hotspots in Canada and around the world means the stars are in alignment for the new era of mobile computing."

Motion Computing
"We are confident that the Tablet PC and the capability to work with digital ink enables a new category of personal computing," said David Altounian, Chief Operating Officer of Motion Computing. "The new operating system and our strategic relationship with Microsoft are invaluable as we bring to market ultra-mobile products that greatly simplify the user's experience by adding new functions without compromising performance."

Reynolds & Reynolds Ltd.
"The Reynolds and Reynolds Company is evaluating a vehicle inspection application that enables automotive retailers to collaborate with and satisfy customers in ways never before possible. Service advisors are able to visually and textually record pre-existing damage to customer vehicles, while used car managers can save time by using the system to assess the condition of trade-ins," said Brian Gibson, Director of Product Management, Reynolds & Reynolds (Canada) Ltd. This functionality is made possible through the Tablet PC's ink recognition facilities. Through wireless connectivity, dealership employees can use the Tablet PC from anywhere in the dealership."

Toshiba of Canada Information Systems Group (ISG)
"Microsoft's Tablet PC operating system together with Toshiba's technology will enable people to extend the usefulness and functionality of the traditional notebook PC to a device which will be an indispensable part of a the user's daily activities, empowering them to choose the freedom to compute any time, anywhere," says Mary Ann Yule, Vice President of Marketing, Toshiba of Canada, ISG.

ViewSonic Canada
"ViewSonic's expertise in displays and mobile computing, in tandem with the advanced technologies in Microsoft's Window XP Tablet PC Edition operating system, will result in a more advanced mobile PC that will better meet the needs of mobile business users," said Colleen Browne, General Manager, ViewSonic Canada. "We are excited about entering this new phase of mobile computing with unmatched versatility and power."

Xplore Technologies Corp.
"Xplore has a rich heritage in engineering, marketing and supporting rugged Pen Tablet computing systems," said Brian Groh, President and CEO of Xplore Technologies Corp. "Using Microsoft's latest operating system, we have developed the Xplore Rugged Tablet PC iX104, a fully-contained pen computing system that is ideal for mobile computing applications requiring the right blend of power, durability, flexibility, mobility and functionality."

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