Shanghai Telecom Focuses on SMBs With Microsoft Solution for Hosted Messaging and Collaboration 3.5

REDMOND, Wash. — June 5, 2006 — Microsoft Corp. today announced that Shanghai Telecom Co. Ltd., a wholly owned subsidiary of China’s largest telecommunications operator, China Telecom Corp. Ltd., has deployed the Microsoft® Solution for Hosted Messaging and Collaboration version 3.5 as the messaging platform for Business Navigator, an application delivery platform developed by China Telecom for enterprises. Shanghai Telecom, one of the first telecom operators in China to deploy the Microsoft solution, has begun a three-month messaging services trial with more than 150 small and midsize businesses (SMBs).

Launched in November 2005, the Microsoft Solution for Hosted Messaging and Collaboration version 3.5 is designed to help service providers offer SMBs rich e-mail services, mobile device data access, team Web sites, and online presence information with minimal upfront costs and a reduced requirement for IT resources. The pre-engineered solution uses a highly integrated set of Microsoft Windows Server System™ software products and includes deployment automation tools and scripts, code samples, and documented procedures and best practices that help service providers rapidly deploy a more secure and scalable messaging and collaboration infrastructure. Management and monitoring tools also help ensure stable operation of the solution and enhanced service levels to end users.

Shanghai Telecom joins a growing set of service providers worldwide — including KPN, Verizon Business and IS Interned Services in partnership with T-Mobile Netherlands — using the Microsoft Solution for Hosted Messaging and Collaboration version 3.5 to offer business-class messaging services. Through service providers, Microsoft is enabling SMBs to take advantage of the latest enterprise-class services such as e-mail, calendaring and real-time collaboration without necessarily investing in an in-house server, thereby increasing productivity and enabling SMBs to focus on their business without worrying about technology concerns or recurring costs.

“Microsoft is committed to building strategic relationships with service providers and helping them extend their revenue capabilities by delivering a range of services that businesses today need,” said Maria Martinez, corporate vice president of the Communications Sector at Microsoft. “Shanghai Telecom’s deployment of the Microsoft Solution for Hosted Messaging and Collaboration version 3.5 is an important step addressing the growing demand for business-class messaging and collaboration services in the Chinese market.”

“In China, there are some 11.2 million SMBs with 145.6 million employees, and many of these companies are not able to utilize technologies such as a business-class messaging and collaboration suite,” said Shen Xin, director of the Biz Navigator project Department of Shanghai Telecom. “By working with Microsoft, we can now offer our attractive and yet affordable Business Navigator services to this market and effectively meet their demand for low-cost but reliable IT solutions. This represents a large market potential for us.”

The Microsoft Solution for Hosted Messaging and Collaboration version 3.5 was deployed by Shanghai Zhiteng Information Technology Co., a local systems integrator. Business

Navigator is designed to provide enterprises, SMBs and consumers with a complete set of services.

More information about Microsoft’s hosting solutions can be found at http://www.microsoft.com/serviceproviders/hostedmessaging.

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