Microsoft Launches New Versions of Point-of-Sale Software and Complete POS Solution With First Data and HP

NEW YORK — Jan. 15, 2007 — Today at the National Retail Federation Annual Convention & Expo in New York, Microsoft Corp. announced the release of Microsoft Dynamics™ – Point of Sale 2.0 and Microsoft Dynamics Retail Management System (RMS) 2.0, furthering Microsoft’s commitment to delivering best-in-class solutions that combine ease of use, rich automation, and outstanding integration with other Microsoft® products and technologies. Microsoft also announced a complete PC-based point-of-sale and integrated payments solution that it will deliver with First Data Corporation and HP. The solution is designed to revolutionize the way small retailers do business and process payments, driving a generational change in payments infrastructure. Payment terminals and dial-up connections can be replaced with PC-based point-of-sale solutions and high-speed Internet connections, offering greater value to retailers and their customers.

“Our vision of offering small and midsize retailers powerful and affordable technology innovation that drives strategic value is a reality,” said Satya Nadella, corporate vice president of the Microsoft Business Solutions Group. “At Microsoft we are excited to offer small and midsize retailers complete business solutions, education and support to empower people with the right information to transform today’s retail challenges into long-term success.”

Microsoft Dynamics – Point of Sale 2.0 offers unprecedented value to customers with a user interface that is familiar, working like and with other commonly used Microsoft software to help increase efficiency; a roles-based design that empowers cashiers and managers; a complete business suite experience that offers seamless integration with Microsoft Office Accounting Professional 2007 for an end-to-end solution; and the ability to extend the storefront to the Internet with PayPal, online invoicing and eBay marketplace selling so retailers can drive even more revenue for their businesses online.*

“Microsoft Dynamics – Point of Sale helped us get through this past holiday season with ease, making it possible for us to ring up more dollars per hour than we ever could on an electronic cash register,” said Sarah Furstenberg, owner of Clover, a high-end toy and children’s furnishing store in Seattle. “With Microsoft Dynamics – Point of Sale we have been able to dramatically reduce lines at the cash register. The system allows staff to quickly look up items that may have lost tags and enter new inventory whenever it’s convenient — all with one less employee than we needed with an electronic cash register.”

As a part of Microsoft’s commitment to drive innovation, Microsoft is offering an integrated POS solution, announced separately today with First Data and HP, that can replace cash registers and outdated dial-up connections, enabling retailers to easily adopt integrated payment-based point-of-sale and payment processing. This offering combines First Data’s credit, debit and gift card payment processing power; Microsoft Dynamics – Point of Sale 2.0; and HP’s rp5000 retail-hardened, industry-standard PC featuring a full line of point-of-sale peripherals and warranties. The solution will be offered by First Data, along with its participating alliance partners and independent sales organizations. Purchase and lease options will be available. Retailers can learn more by visiting http://www.POSValueX.com.

For midsize retailers with more complex operational requirements, Microsoft is launching Microsoft Dynamics RMS 2.0. New benefits include improved ease of use for managing complex inventory, efficient purchase order creation through Microsoft Office integration, support for next-generation hardware devices and simplified product activation.

“With Microsoft Dynamics Retail Management System 2.0, I am able to manage my business from home, handle purchase orders with ease and leverage customer data to drive additional revenue for my business,” said Mitchell Cohen, owner of Bellini with two franchise locations in Wellesley, Mass., that sell furnishing and accessories for babies through teens. “With Microsoft Dynamics RMS, I can look at the buying trends of my customers and target them for future sales. For example, when someone comes in to purchase a baby bed, I know that in a couple of years they will be in the market for a crib and I can proactively reach out to the customer at that time.”

More information is available at http://www.microsoft.com/pos for Microsoft Dynamics – Point of Sale and at http://www.microsoft.com/msrms for Microsoft Dynamics Retail Management System.

Availability and Pricing

Microsoft Dynamics – Point of Sale pricing starts at $799 (U.S.) MSRP** for a single store, single lane, software only and is available in the U.S. only. Microsoft Dynamics Retail Management System pricing starts at $1,190 (U.S.) MSRP** for a single store, single lane and is available in English worldwide.

About Microsoft Dynamics

Microsoft Dynamics is a line of financial, customer relationship and supply chain management solutions that helps businesses work more effectively. Delivered through a network of channel partners providing specialized services, these integrated, adaptable business management solutions work like and with familiar Microsoft software to streamline processes across an entire business.

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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