Microsoft Acquires STNC, a Leader in Digital Cellular Software

REDMOND, Wash., July 21, 1999 — Working toward the vision of enabling information access any time, anywhere, from any device, Microsoft Corp. today announced it has acquired STNC Ltd., which has headquarters in Bury St. Edmunds, Suffolk, England. Founded in 1993, STNC is focused on the development of leading-edge communication software for the digital cellular telephone industry. The company, which has approximately 40 employees, will remain in the United Kingdom and become a fully integrated extension of Microsoft’s Productivity Appliances Division. STNC’s technology will be integrated into future digital cellular products to enable customers to read e-mail messages, view their calendars and contact information, and access corporate information and the Internet.

“Microsoft is excited about the acquisition because of STNC’s core competency in digital cellular phone software and its established position in the European market,” said Harel Kodesh, vice president of the Productivity Appliances Division at Microsoft. “This further demonstrates Microsoft’s commitment to and focus on evolving a wireless telephone platform that will enable our customers to access information anywhere, any time, from their cellular phone.”

“STNC has always believed in the delivery of information to wireless devices through the use of Internet standards, a view that is clearly shared by Microsoft,” said Ran Mokady, CEO of STNC, who will remain in Europe as a director in Microsoft’s Productivity Appliances Division. “Our experience in the wireless industry has convinced us that Microsoft’s strategy of delivering end-to-end products and solutions is a compelling one for both operators and handset vendors. We are delighted to be given the opportunity to become an important part of Microsoft’s wireless telephone platform team and help deliver on our mutual vision.”

STNC’s products include a broad range of wireless communications software based on Internet standards and designed for use in small mobile appliances such as cellular telephones and handheld computers. These products will be integrated into the evolving Microsoft® wireless telephone platform based on the Microsoft Windows® CE operating system and Microsoft microbrowser technology.

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.

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