Xerox and Microsoft Collaborate To Advance Knowledge-Sharing in the Office

PALO ALTO, Calif., May 18, 1999 — Microsoft Corp. and Xerox Corp. today announced a joint technology and market-development initiative designed to accelerate and simplify knowledge-sharing in the mainstream office. This collaboration extends Microsoft’s vision of the
“digital nervous system”
and Xerox’ vision of bridging the paper and digital worlds.

The companies, responding to the need of knowledge workers to streamline information management, have agreed to share technology and work together to create new collaboration and communication solutions based on the Microsoft® Windows NT® Embedded operating system and Microsoft Exchange Server, and take advantage of the powerful capabilities of Xerox’ Document Centre Systems.

“We are empowering knowledge workers by unifying the digital and paper worlds,”
said Steve Ballmer, president, Microsoft.
“Xerox’ dynamic vision and leading role in the office will allow our customers to more easily share, communicate and manage company information.”

Xerox President and CEO Rick Thoman added,
“Integrating the technologies and product capabilities of Xerox and Microsoft enables the timely delivery of information – it is the catalyst for knowledge-sharing to become a realistic and relevant capability in the office today.”

Xerox and Microsoft Build Document Bridge

Xerox and Microsoft revealed a solution to bridge the paper-digital chasm by integrating Xerox Document Centre, the industry’s leading gateway for paper and digital documents, with Microsoft Exchange Server, the leading messaging and collaboration server on the market today. With the Xerox Document Centre family, users can now scan documents directly to Microsoft Exchange Server. These documents can be shared locally by a team or replicated across a global enterprise through the use of Exchange Public Folders.

Xerox Licenses Windows NT Embedded 4.0

Xerox has licensed Windows NT Embedded 4.0 as the operating system for a future generation of Document Centre products, enabling Microsoft to extend the Windows NT operating system into a new category of products. Windows NT Embedded 4.0 provides Xerox with an open, fast and economical operating system for building interoperability and additional functionality into a generation of Document Centre products that is currently under development. Customers benefit from greater integration of the Xerox Document Centre platform into the Microsoft environment, creating a system in which new value-added applications can be introduced with greater speed and at lower cost. Document Centre Systems, in a range of models and configurations, represent the heartland of the Xerox digital office, and integrate scanning, faxing, printing and copying into a network document gateway.

Microsoft Licenses PARC User-Interface Technology

Microsoft has licensed the Xerox PARC-developed WebForager, a user-interface technology that enables Web surfers to leaf through the virtual pages of the Net as easily as a reader flips through the physical pages of a book. The technology will be used in combination with Microsoft’s current 3-D user interface research.

Xerox Connect Attains Microsoft Partner Status

Microsoft named Xerox Connect, Xerox’ network services organization, as a Microsoft Enterprise Alliance Partner. This reflects Xerox Connect’s long-term commitment to provide a high level of professional services including IT consulting, custom application development, and deployment services for Microsoft products. Xerox Connect will maintain a significant number of personnel who have attained Microsoft Certified Professional status and promote and support the Microsoft BackOffice® family of products. Xerox and Microsoft are committed to growing these capabilities with special focus on the solution announced today.

Customer-Engagement Plan

Xerox separately announced a distribution and marketing alliance with Compaq Computer Corp., one of the world’s largest resellers of Microsoft network software. Initially, Xerox Connect and Compaq will constitute the primary delivery channels for the Exchange and Document Centre solution, forming the backbone of a knowledge-sharing solution for the office environment.

Availability

The Microsoft Exchange and Document Centre solution is scheduled to be available in the United States in the third quarter of 1999, with extended worldwide distribution next year.

About Xerox

The Document Company, Xerox (NYSE
“XRX”
) is the global leader in its industry, offering the widest array of document-related solutions, products and services that enhance business productivity. Xerox provides unmatched expertise in the production and management of

paper and electronic documents from the desktop to the network, from the home office to the global enterprise. More information about Xerox can be found at http://www.xerox.com/ .

About Microsoft

Founded in 1975, Microsoft (Nasdaq
“MSFT”
) is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.

Microsoft, Windows NT and BackOffice are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

Xerox and Document Centre are registered trademarks of Xerox Corp. in the United States and/or other countries.

Other product and company names herein may be trademarks of their respective owners.

For more information on Windows NT Embedded:

Visit http://www.microsoft.com/embedded/ .

For more information on Microsoft Exchange:

Visit http://www.microsoft.com/exchange/ .

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

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