Microsoft Announces Partnership with TCL Mobile

Beijing, China, May 16, 2002 — Microsoft and TCL Mobile today signed a Memorandum of Understanding (MOU). The agreement will see TCL develop its next generation OMIT (Open Multimedia Information Terminal) devices on Microsofts Windows Powered Pocket PC 2002 Phone Edition and Smartphone 2002 platforms. TCL Mobile and Microsoft share the same multi-platform approach to the device space and believe this partnership will help quickly bring to market devices that will meet the needs of users in China.

Chinas position as a significant mobile communications market and its continued potential is undoubted. According to CCID Consulting, in 2001 the number of mobile phone users in China leapt 71.3% to 144.8 million, accounting for 44.13% of the total phone market. It is anticipated that by 2005 this number will grow to 252.03 million mobile phone users. This high growth, coupled with the increased demand for mobile computing, means Microsofts recently launched (April 2002) Simplified Chinese Pocket PC platform will play a key role in helping Chinese manufacturers and development partners take advantage of this huge opportunity.

Wan Mingjian, President of TCL Mobile said:
“Wireless data is the direction next generation communications is taking. We believe that mobile devices with only voice functionality will end up in the same category that pagers are in today. We believe OMIT devices represent the future of the mobile market and our goal is to provide the best, most available wireless experience to our customers.”

He continued:
“In the past three years, the profit and revenue of TCL Mobile has grown ten-fold and we believe this is the ideal time for us to partner with great companies such as Microsoft to provide us with leading edge technologies we need to compete globally. Microsoft is also helping to drive Chinas IT industry to take on a more prominent role internationally. By co-operating with Microsoft, we will be able to provide smart devices using Pocket PC 2002 Phone Edition and Smartphone 2002 software which we believe are critical to deliver a great customer experience. This partnership will enable us to accomplish our vision of being one of the world’s top five manufacturers of multimedia and mobile-communications products within three to five years.”

“Mobility is a core part of Microsofts overall corporate vision — to empower people with great software any time, any place and on any device,”
said Juha Christensen, Corporate Vice President of Microsofts Mobility Group.

“To deliver on this vision, we need partners such as TCL that add value to our software with their local expertise and knowledge. Microsoft is committed to establishing strategic partnerships with local Chinese manufactures and providing them with leading edge technologies to develop the local market and to be competitive worldwide. The result of this partnership will see TCL delivering devices that will answer the needs of users in China and globally.”

Kelvin Hou, Greater China OEM Director, Microsoft Greater China, acknowledged TCL Mobile for its achievements and leadership in China. He said:
“We believe TCLs investment in the mobile handset market combined with their best-of-breed mobile devices, based on Pocket PC 2002 Phone Edition and Smartphone 2002, will be a winning combination locally and internationally. Microsoft will work with TCL on joint R & D and marketing activities and we expect this to be a long and fruitful business partnership.”

Pocket PC 2002 Phone Edition, which builds on the Pocket PC 2002 software platform, focuses on three main areas: Pocket PC and phone integration, great phone functionality and

Smart” connectivity. Pocket PC 2002 Phone Edition software offers more options for connectivity, including support for multiple wide area networks (WANs) and Wi-Fi, and gives users the means to intelligently manage these multiple connections. Used with Server ActiveSync technology and remote desktop synchronization, Pocket PC 2002 Phone Edition provides the ability to securely connect to and synchronize personal and corporate information over the air.

Smartphone 2002 will deliver the applications and functionality users expect in next-generation wireless solutions. When coupled with Microsofts back-end servers and services, Smartphone 2002 software will be a premier platform that provides network operators and corporate customers with the power of mobile services and Internet access in a small, lightweight mobile phone form factor. It pushes platform integration to a new level and offers users exciting features such as mobile access to e-mail and personal information, robust Web-browsing capabilities, audio and video playback and streaming and rich gaming.

“OMIT based on the Microsofts mobile platform will provide advanced data and voice functionality and new applications for wireless users,”
added Wan Mingjian.
“The devices will be ideal for on-the-go professionals who need to access data through e-mail or the Web and to place and receive phone calls — all in one cool device.”

About TCL Mobile

TCL Mobile, part of the TCL Corporation, was founded in 1999 to develop, manufacture and market mobile communications terminals. The National Planning Bureau and MII have appointed TCL Corporation as one of the manufacturers of mobile phone handsets in China. More information on TCL Mobile is located on the World Wide Web at

About Microsoft

Founded in 1975, Microsoft (Nasdaq
) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software — any time, any place and on any device. Please visit the Microsoft Web page at for more information.

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Web page at on Microsoft’s corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. Journalists and analysts may contact Microsoft’s Rapid Response Team for additional assistance.

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