Microsoft to Implement Worldwide Anti-Piracy Initiative

Microsoft to Implement Worldwide Anti-Piracy Initiative

Windows Genuine Advantage Verifies the Authenticity of Windows Software
and Helps Customers Avoid Risks Associated With Counterfeit Software

REDMOND, Wash. -- Jan. 26, 2005 -- In 2005, Microsoft Corp. plans to
enhance its anti-piracy engineering, education and enforcement efforts by
expanding the Windows® Genuine Advantage program. Windows Genuine
Advantage checks the authenticity of a user's software and provides
access to popular software and other benefits, helping consumers and
businesses ensure that they are receiving the greater reliability, faster
access to updates, and richer user experiences offered by genuine Windows
XP software.

Every year, millions of consumers and businesses worldwide are hurt by
counterfeit software that they have purchased unwittingly, and many
companies that sell legitimate software have difficulty competing with
the artificially low prices offered by software counterfeiters.
Counterfeit software puts users at risk of receiving an inferior product
that may present security risks, be missing code or contain malicious
code.

"Software piracy costs customers, software vendors and national economies
billions of dollars every year. The best way to fight software piracy is
to ensure that users recognize and receive all the benefits of genuine
software," said Will Poole, senior vice president of the Windows Client
Business at Microsoft. "When our customers participate in Windows Genuine
Advantage, they will know they have easy access to updates, added-value
software offerings and other benefits of genuine Windows XP, not the
uncertainty and risks of counterfeit software."

Introduced as an optional pilot program to users of English-language
versions of Windows in September 2004, Windows Genuine Advantage already
helps protect millions of Windows users from an inferior computing
experience, viruses and other vulnerabilities that can result from
counterfeit software. According to the Business Software Alliance Global
Software Piracy Study, conducted by International Data Corp. and released
in July 2004, 36 percent of the software installed on computers worldwide
was pirated in 2003. Microsoft aims to reduce the impact of pirated
software on legitimate software resellers and economies around the world,
which lose nearly $29 billion a year to pirated software, according to
the Business Software Alliance.

Windows Genuine Advantage Going Global, Adding Incentives

Response to the pilot program has far exceeded Microsoft's expectations,
with more than 5 million people voluntarily taking part since the program
began in September 2004. Based on feedback from customers and in line
with Microsoft's ongoing commitment to fighting piracy and increasing the
value of Windows, on Feb. 7 Windows Genuine Advantage will expand in the
following ways:

* Twenty new language versions of Windows XP will be added to the
opt-in pilot program on the Microsoft® Download Center,
http://www.microsoft.com/downloads.
* Most Windows content on the Download Center will be included in the
pilot program.
* To access genuine Windows content, Download Center users with
Norwegian, Czech and Simplified Chinese language versions of Windows will
be required to participate in the pilot program.
* New software incentives, valued at more than $450 (U.S.), will be
added for users of genuine Windows software who take part in the program,
including these:
o Microsoft Photo Story 3 for Windows
o Winter Fun Pack 2004
o Fifty percent off a selection of MSN® Games by Zone.com
o Six-month trial of Microsoft Office OneNote® 2003
o Fifty percent off hosted Windows SharePoint® Services
o Fifty percent off Microsoft List Builder service
o Thirty percent off the new Microsoft Office Outlook® Live
service

In addition to the increased rewards for users of genuine Windows
software, Microsoft will begin piloting a legalization offer in the
People's Republic of China, Norway and the Czech Republic for qualified
participants who discover that they have been sold a counterfeit version
of Windows XP. These customers will be offered a genuine version of
Windows at a reduced price. All participants with counterfeit versions of
Windows will continue to receive guidance on how to recognize genuine
copies of Windows, how to seek redress from the seller, and how to
protect their PC.

"Software piracy is an enormous problem for honest system builders and
resellers because it creates an unfair price advantage for distributors
who sell their counterfeit products at artificially low prices," said
David Stinner, president of US itek inc. "The Windows Genuine Advantage
Program will help us because it levels the playing field for honest
channel partners, and because its added-value software offerings
differentiate the genuine product we sell from the counterfeit products
we compete with."

In the second half of 2005, visitors to the Microsoft Download Center
(http://www.microsoft.com/downloads) and Windows Update
(http://v5.windowsupdate.microsoft.com/v5consumer) will be required to
participate in Windows Genuine Advantage to access all content. To help
customers who may require more time to move to genuine Windows software,
Microsoft is offering security updates through Automatic Updates in
Windows, with or without Windows Genuine Advantage validation.

To further combat software piracy, Microsoft is working with partners to
change how some Certificates of Authenticity (COAs) are matched during
activation, because a significant number of COAs are stolen each year
from reputable computer makers and resold as new. This change will help
protect consumers from being victimized by pirates and give them
confidence that they are receiving what they paid for. It also will help
Microsoft's partners protect their investments in Windows.

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

Microsoft, Windows, MSN, OneNote, SharePoint and Outlook are either
registered trademarks or trademarks 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.

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