Intel, Microsoft Collaborate to Bring Pay-as-You-Go PCs to Millions of New Users

SEATTLE — May 21, 2006 — Intel Corporation and Microsoft Corp. today announced that the companies will collaborate to engineer and deliver flexible, pay-as-you-go PC purchasing models for consumers in emerging markets. Intel’s support of Microsoft® FlexGo technology is a key part of Intel’s broad World Ahead program to help speed access to uncompromised technology and education for people in developing regions around the world. The collaboration between Microsoft and Intel to implement FlexGo technology is another example of the successful joint activities the two companies have taken on in emerging markets.

The pay-as-you-go model enabled by FlexGo makes PCs more accessible by reducing the initial cost and enabling customers to pay for computers through subscriptions or as they use them, through the purchase of prepaid activation cards or tokens. Intel provides support for the FlexGo capability initially on Intel’s Discover the PC platforms tailored for people in developing regions, such as the recently introduced Intel-powered Community PC in India.

“We have a strong history of collaboration with Intel, driving innovation with the industry, making our products more accessible and improving the lives of people in developing markets,” said Will Poole, senior vice president of Microsoft’s Market Expansion Group. “We are very optimistic about the results of our joint efforts, such as our collaboration with governments to promote PC ownership, and look forward to working with Intel on pay-as-you-go and subscription computing with FlexGo technology to introduce whole new groups of people to the power of technology.”

“Through our World Ahead program, Intel has committed $1 billion to enhancing lives in the world’s developing communities by driving progress in PC accessibility, Internet connectivity and education,” said William M. Siu, vice president and general manager of Intel’s Channel Platforms Group. “We are excited to work with Microsoft to implement the FlexGo technology and further equip millions of new users with the power of low-cost, full-featured PCs through a tailored financing model that fits their lives and budgets. Pay-as-you-go and subscription computing with Microsoft FlexGo technology will be a key part of Intel’s portfolio of enabling efforts in developing communities in 2006 and beyond.”

Intel’s World Ahead Program, which extends the company’s existing initiatives for developing regions, integrates Intel’s efforts to enhance lives by driving progress in technology accessibility, connectivity and education. The five-year objectives of the World Ahead Program are to extend broadband PC access to the world’s next billion users while training 10 million more teachers on the use of technology in education and with the possibility of reaching another 1 billion students.

About Intel

Intel, the world leader in silicon innovation, develops technologies, products and initiatives to continually advance how people work and live. Additional information about Intel is available at www.intel.com/pressroom.

About Microsoft

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

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