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MICROSOFT, BT TRIAL WIRELESS DATA APPS

In a move designed to further its interests in the wireless environment, Microsoft Corp. announced it
has formed an agreement with British Telecommunications plc to develop a set of services to make various types of
Internet-and intranet-based applications and information available to mobile device users overseas.

The agreement
is expected to allow users to access e-mail, calendar programs, personalized Web content and online information
services via mobile phones, pagers or handheld/laptop computers. While Microsoft has made similar advancements in
North America via its Wireless Knowledge L.L.C. joint venture with Qualcomm Inc., the British Telecom
announcement marks the first time such applications will be available outside North America, the company said. Some
40 countries outside North America are expected to take advantage of the new service.

The two companies said they
will build what they called “data centers” using Microsoft’s platform, consisting of the Windows NT
operating system, Internet Information Server and Microsoft Exchange Server. The Exchange Server will provide the
bulk of the wireless e-mail and data services of the system, the company said.

These data centers then will connect
to BT’s network, which serves some 13 million customers in 10 countries. To extend these services further, BT said its
global solutions company, Concert Communications Services, will be the entity actually offering the services created
by it and Microsoft.

The two companies said they expect to begin trials in the United Kingdom by this spring with
services commercially available by early next year in some countries. The tests will consist of both user interface and
customer trials.

The first service offerings are expected to include e-mail, calender and contact list and basic
Internet-based information services, as well as access to Exchange-based corporate networks.

BT also said it will
use Microsoft’s microbrowser technology, demonstrated at Wireless ’99 in New Orleans last week, in handsets and
promote future Windows CE-based wireless products.

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