Microsoft Continues to Gain Momentum in Retail

CHICAGO, June 25, 2002 — Today at Retail Systems 2002/VICS Collaborative Commerce, Microsoft Corp. announced that Target Corp. and Royal Caribbean International are the latest enterprises to choose Microsoft® Windows®
XP Embedded as their technology platform for retail point-of-sale (POS). In addition, Microsoft announced that leading retail solutions company NCR Corp. has chosen Windows XP Embedded for new POS devices.

“We are excited by the retail industry’s growing support for Microsoft and the decisions that many retail enterprises and technology companies are making to adopt Windows XP Embedded for their next-generation in-store systems,” said Gary Cooke, industry manager of retail and hospitality at Microsoft. “Windows XP Embedded delivers the Web-ready, retail-hardened, flexible operating system platform that retailers need to support two-way communication and real-time exchange of information.”

Target, one of the country’s leading retailers, is planning to put Windows XP Embedded into operation nationwide by the first quarter of 2003. Target operates a variety of large, general merchandise store formats, including discount stores, moderate-priced promotional and traditional department stores.

The Windows XP Embedded operating system is slated to run on approximately 43,000 registers at more than 1,300 Target and Mervyn’s stores. Target-owned Marshall Field’s will also be added to the roster of stores powered by Windows XP Embedded.

“We feel we have made significant progress in simplifying our stores’ architecture by using Microsoft Windows Embedded technology to support our point-of-sale registers,” said Larry Wobig, vice president of applications development at Target. “By using Windows XP Embedded in POS, we will gain advantages from a proven solution as well as a small footprint and broad peripheral compatibility due to well-supported OPOS interfaces.”

Royal Caribbean International, the world’s second-largest cruise line company, will install 1,200 new Windows Powered appliances, based on Microsoft Windows XP Embedded, on cruise ships this year. The appliances will allow crew members to access the Internet and stay connected to their families and friends, as well as their corporate intranet, including access to the Microsoft Office productivity suite.

“Once this is implemented, we fully expect to consider using Windows Powered appliances to replace full-size PCs,” said Daniel McCommon, project manager at Royal Caribbean/Celebrity Cruises Inc. “And that’s where we would expect to see considerable cost savings over our old system. We discovered that devices running the Windows XP Embedded operating system meet all our needs and requirements, and they will offer even more value in the future. Now Royal doesn’t have to worry about running a ‘niche OS.'”

NCR, a leading global provider of store automation solutions, including software, hardware and services, is poised to enable Windows XP Embedded to work with its Advanced Store POS software solution. The combination of NCR Advanced Store and Windows XP Embedded will provide retailers with a solution that addresses their current and future business needs. Earlier this year, NCR announced support of Windows XP and Windows XP Embedded for select NCR RealPOS point-of-sale workstations.

“The ability to tailor the operating platform and implement an embedded OS solution can potentially lower the total cost of ownership and provide a smaller footprint to the retailer,” said Dave Ashcraft, vice president and general manager of General Merchandise Software business at NCR.

NCR is a leading global technology company helping businesses build stronger relationships with their customers. NCR’s ATMs, retail systems, Teradata data warehouses and IT services provide Relationship Technology solutions that maximize the value of customer interactions.

Microsoft Windows XP Embedded marks the first time that key technologies required by the new generation of retail point-of-sale solutions have been incorporated into a single, complete embedded offering. Many retailers today are making plans to update their POS solutions and are looking for systems that provide much greater functionality, interoperability and flexibility.

Windows XP Embedded enables OEMs, ISVs and systems integrators to rapidly develop small-footprint, full-featured point-of-service devices that integrate seamlessly with current and future back-office infrastructure investments.

Founded in 1975, Microsoft (Nasdaq “MSFT”) 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.

Microsoft and Windows are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

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