Microsoft Windows XP Embedded Chosen by Catalina Marketing For Its Retail Point-of-Sale Systems

CHICAGO, June 25, 2002 — Today at Retail Systems 2002/VICS Collaborative Commerce, Microsoft Corp. announced that Catalina Marketing Corp. (NYSE: POS), a global leader in providing one-to-one communications on a mass scale, will be standardizing its technology using Microsoft® Windows®
XP Embedded in conjunction with its loyalty marketing services worldwide on retail point-of-sale (POS) systems.

“After carefully evaluating a number of vendors and technology solutions, we have committed to implementing Windows XP Embedded on our retail systems,” said Eric Williams, chief technology officer at Catalina Marketing. “Microsoft’s technology platform fits our needs by providing greater flexibility and functionality and, in turn, best meets the demanding requirements of our worldwide retail environment. This technology will become the standard on more than 20,000 electronic marketing servers in both domestic and international retail stores, offering Catalina Marketing a higher level of system flexibility and control.”

Microsoft’s platform will strengthen Catalina Marketing’s one-to-one customer loyalty marketing services and enhance the process by which Catalina Marketing enables retailers to communicate individualized messages to their target audience. Windows XP Embedded will replace Catalina Marketing’s current operating system, IBM OS/2.

“We are pleased that Catalina Marketing has chosen Microsoft for its retail platform needs,” said Jan de Jong, general manager of the retail industry solutions group at Microsoft. “This relationship will provide Catalina Marketing with an advanced operating system that will accommodate its evolving POS challenges and update its in-store systems. It also offers further evidence to the retail industry of the suitability of Microsoft Windows XP Embedded as a leading technology platform for POS systems.”

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.

Development and implementation of Microsoft Windows XP Embedded for Catalina Marketing will begin immediately.

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