Microsoft Names Wistron as Second Manufacturing Partner for Xbox

REDMOND, Wash., Sept. 2, 2002 — In line with its previously stated strategy, Microsoft Corp. today announced an agreement with Wistron Corp., the manufacturing arm of Acer Inc., to manufacture the Xbox (TM) video game system. Acer is a valued OEM partner for Microsoft and will further enhance the competitive position of Xbox in the market. Wistron is the second manufacturing partner for Xbox, joining Flextronics, a valued manufacturing partner since the launch of Xbox. With both Wistron and Flextronics on board, there are two manufacturing partners focused on improving cost and operational efficiencies while maintaining superior quality for Xbox.

Wistron will begin manufacturing consoles in its Zhongshan, China, facility before the end of the calendar year. The facility will provide manufacturing services for Xbox from parts to final packaged product including parts procurement, assembly and integration, testing, and final box build.

“As the world’s leading contract manufacturer for the PC industry, we are looking forward to working on this groundbreaking game console and helping Microsoft meet its manufacturing goals and consumer demand for Xbox. We look forward to a long, successful relationship,”
said Simon Lin, CEO and chairman of Wistron.

“With the expansion of Xbox into six new countries and regions, we anticipate a hot holiday season for Xbox,”
said Par Singh, director of business development for Xbox at Microsoft.
“With Wistron and Flextronics on board, two superior partners, we are well prepared to meet the anticipated demand.”

Singh added that Microsoft is extremely pleased with Flextronics’ performance and the Wistron facility will handle incremental volume at this time.

The partnership with Wistron underscores Microsoft’s support for the development of China’s IT industry. In the memorandum of understanding signed in June with China’s State Development Planning Commission, Steve Ballmer, CEO of Microsoft, announced a $750 million (U.S.) investment and cooperation agreement with the Chinese government and the IT industry.

About Xbox

Xbox ( ) is Microsoft’s future-generation video game system that delivers the most powerful games experiences ever. Xbox empowers game artists by giving them the technology to fulfill their creative visions as never before, creating games that blur the lines between fantasy and reality. Xbox is now available in North America, Japan, Europe and Australia.

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.

Microsoft and Xbox 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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