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

TORONTO, ON - Thursday, November 7, 2002 -- 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.

· Adobe Systems Inc. (network publishing solutions)

· Alias|Wavefront (drawing)

· Autodesk Inc. (design solutions)

· Corel Corporation (graphics and business productivity applications)

· ESRI (mapping)

· FranklinCovey (personal and collaborative planning and scheduling)

· Groove Networks (collaboration software)

· Iteration Software (real-time event-driven reporting)

· Keylogix (document automation)

· LexisNexis (decision support solutions)

· Reynolds & Reynolds Ltd. (automotive retailing solutions)

· SAP (business processes)

· Stentor (medical imaging)

· Webex (web-based whiteboard/conferencing)

· Zinio Systems Inc. (digital magazine technology and services)

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.