Microsoft and Telstra Launch Integrated Wireless Pocket Solution for Australian Business

SYDNEY, Australia, October 16, 2002 — Microsoft Australia and Telstra Corporation Limited today launched Australia’s first “all-in-one” Pocket PC Phone Edition 2002 PDA (Personal Digital Assistant) for busy, mobile professionals who want a wireless pocket solution that enhances their business productivity and performance.

The device is Australia’s first fully integrated GSM/GPRS mobile phone/PDA based on Microsoft’s Pocket PC Phone Edition 2002. It combines voice and text messaging capabilities with Microsoft Outlook, Excel, Word, Internet Explorer and MSN Messenger.

The O2 xda* is designed for seamless integration and functionality between PDA and phone, and uses Microsoft Pocket PC Phone Edition 2002 software. The unit has a color touch-sensitive screen, access to the Internet and WAP, and is a dual-band mobile phone with both hands-free and speaker-phone capabilities.

In Sydney today, Microsoft Chief Executive Officer Steve Ballmer said Microsoft is excited to launch the Pocket PC 2002 Phone Edition in the Australian market with Telstra.

“Telstra and Microsoft will continue to collaborate to bring to market wireless solutions that enable the end-user to realise true business potential on the move,” Ballmer said.

Microsoft and Telstra are currently working together to launch a suite of next-generation mobile devices, and are also leading the local development of enhanced and innovative wireless technology products and solutions.

Telstra Corporation Group Managing Director Ted Pretty said Telstra was committed to its leadership role in the wireless solutions market and planned to deliver products and services for Australian business that enhance productivity and lower costs.

“Telstra and Microsoft have an exciting opportunity to grow the wireless market by working with the local developer community and introducing new applications and solutions for business and consumers, using their respective sales channels,” Pretty said.

Telstra and Microsoft plan to leverage their respective developer relationships, work together to increase the number of wireless-enabled applications, and assist Australian developers in deployment.

“Our partnership has also allowed us to jointly work with enterprise customers in deploying wireless technologies to provide them with a competitive advantage and enjoy a leadership position,” Pretty said.

“Telstra intends to be ‘first to market’ locally with the wireless applications and branded devices its customers want. The O2 xda pocket solution is currently one of the most advanced PDAs available, and we are pleased to be the first to commercially release this product in Australia with Microsoft.”

Selected Telstra shops will have limited stocks of the O2 xda available for purchase from October 17, 2002. Further information is available at www.telstra.com .

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software – any time, any place and on any device.

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.

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* xda is a registered trademark of O2 Ltd.

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