Microsoft and Phase One Form Strategic Alliance to Improve Digital Photography Solutions

REDMOND, Wash., and COPENHAGEN, Denmark — Oct. 26, 2007 — Microsoft Corp. and Phase One today announced a strategic alliance to explore ways to improve digital imaging solutions for professional photographers and enthusiasts. The companies will work together to develop solutions for the Microsoft Windows platform that further innovation in the digital photography space. The alliance combines Phase One’s industry expertise with Microsoft’s widely used platform technology and includes technology sharing and intellectual property assets as well as joint marketing.

“Microsoft and Phase One are joining forces to develop solutions for the Windows platform that meet the sophisticated needs of professional and ‘prosumer’ photographers,” said Kostas Mallios, general manager of the Rich Media Group at Microsoft. “Today’s announcement is another example of Microsoft’s commitment to our customers and the digital imaging industry.”

Microsoft has a strong record of making investments in digital imaging technology for Windows Vista, HD Photo, Photosynth, Digital Image Suite and other products that provide superior solutions for professional photographers and enthusiasts alike. The alliance builds on Microsoft’s focus in the digital imaging market by ensuring that professional-quality tools for the Windows platform are accessible enough for enthusiasts. Phase One has a deep knowledge of the industry, having built software that streamlines the image-capture and post-production process for 14 years.

“Professional photographers are always looking for ways to reduce the amount of time they spend in front of the computer,” said Henrik Håkonsson, CEO of Phase One. “At the same time, enthusiasts want professional-quality tools but don’t want to be bogged down with features and functions they won’t use. We believe our combined expertise in digital imaging technology will help address these unmet needs to the benefit of our digital back customers and our digital SLR software customers.”

About Phase One

Phase One is a leading provider of digital image capture and workflow management technology. Phase One P+ Series digital backs open new possibilities, putting the focus back on the moment of capture. Phase One Capture One software helps streamline the capture and post-production process. Supporting DSLR, medium- and large-format photographic equipment, Phase One products are renowned for their superior quality, flexibility and speed — enabling pro photographers to realize their most subtle and most complex visions without compromise.

Phase One is an employee-owned company based in Copenhagen with offices in New York, London, Tokyo, Cologne and Shanghai.

For more information about the products, visit the Phase One Web site on www.phaseone.com.

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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