AUCKLAND, New Zealand — October 25, 2006 — Microsoft New Zealand today announced programs to provide New Zealand holiday shoppers with low-cost upgrades to Windows Vista™ and the 2007 Microsoft® Office system release with the purchase of a new Windows Vista Capable personal computer. Microsoft is working with participating computer manufacturers and system builders that plan to sell PCs loaded with Windows® XP or pre-installed with Microsoft Office 2003 software to make the Express Upgrade to Windows Vista and Microsoft Office Technology Guarantee programs available to consumers and small businesses from October 26, 2006, through March 15, 2007.

“New Zealand customers can shop for a new PC with confidence over the Christmas and New Year holiday period because of the Express Upgrade to Windows Vista and the Office Technology Guarantee programs,” says Brent Colbert, Marketing Director at Microsoft New Zealand. “These programs ensure people will have a great experience with their Windows XP-based PCs today, and an even better one when Windows Vista and the 2007 Microsoft Office release become available.

“For customers wanting to purchase Microsoft Office and Windows XP full packaged products at retail outlets prior to Christmas and who would also like to upgrade to new versions of both products shipping in 2007, we have introduced the Software Upgrade Guarantee Program. When a the customer buys a full package product of Microsoft Office 2003 or Windows XP between October 26 2006 and February 28 2007 for an additional NZ$32.00 they can upgrade to the corresponding 2007 version when it becomes available.”

Boxed Product Software Upgrade Guarantee Program

New Zealand customers wanting more information on the Software Upgrade Guarantee Program can call 0800 800 004. This program is valid from October 26, 2006 to February 28, 2006. Customers can also check with their local retailers to learn more about this specific program.

OEM Express Upgrade to Windows Vista Program

A number of computer manufacturers worldwide have confirmed plans to participate in the Express Upgrade to Windows Vista program. PCs carrying the Windows Vista Capable logo may be eligible for the program, but upgrade offers will vary among PC makers. The upgrade to Windows Vista may be offered at a discounted price, and customers should check with PC makers for their specific offers. Consumers can also visit www.microsoft.com/nz/windowsvista/getready/default.mspx for more information.

Microsoft will be working with participating smaller PC makers, known as system builders, to provide customers with upgrade coupons for Windows Vista with the purchase of a qualifying Windows Vista Capable PC. The offer may vary by PC makers and retail outlets, but in New Zealand the following upgrades will be offered for a nominal fee; from Windows XP Media Center Edition 2005 to Windows Vista Home Premium, and upgrades from Windows XP Professional, Windows XP Tablet PC Edition and Windows XP Professional x64 Edition to Windows Vista Business and Windows Vista Business 64. Upgrades from Windows XP Home Edition to Windows Vista Home Basic and to Windows Vista Home Premium will also be offered. Customers should check with their local retailers for more specific details.

Microsoft Office Pre-installed Technology Guarantee Program (OEM)

Microsoft will also enable customers to upgrade to comparable editions of the 2007 Microsoft Office system release when they purchase PCs pre-installed with qualifying Microsoft Office 2003 software. For Microsoft Office purchases made through participating computer manufacturers in qualifying locations, customers will receive upgrades to comparable 2007 Office system products for the cost of shipping and handling when the product becomes available. For purchases of Microsoft Office through a system builder, customers will need to provide valid proof of purchase and cover shipping and handling costs associated with the upgrade.

Microsoft Recommendation for Christmas and New Year Purchases

For all holiday period purchases of machines loaded with Windows XP, Microsoft recommends that buyers consider Windows Vista Capable PCs that are designated Premium Ready, and specifically such PCs loaded with Windows XP Professional, Windows XP Tablet PC Edition or Windows XP Media Center Edition 2005. PCs that are designated as Premium Ready can deliver the core Windows Vista experiences, plus features such as the Windows Aero™ user experience and Media Center.* For more information about what version of Windows Vista is right for them, buyers can visit www.microsoft.com/nz/windowsvista/getready/default.mspx

About Microsoft New Zealand

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realise their full potential.

#########

Microsoft is a registered trademark of Microsoft Corp. 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.

For more information, press only:

Carol Leishman, Communications Manager, Microsoft New Zealand
Email: carolle@microsoft.com Phone: + 64 9 362 5806, Mobile: +64 21 636 607

Amy Kuzich, Account Manager, Text 100 New Zealand
Email: amy.kuzich@text100.co.nz Microsoft Press Office line: +64 9 362 5844

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft New Zealand web page at www.microsoft.com/nz/ on Microsoft’s corporate information pages.