Wincor Nixdorf and Microsoft Enter Into Strategic Alliance

PADERBORN, GERMANY, Jan. 28, 2003 — Wincor Nixdorf and Microsoft today jointly announced a broad-reaching alliance to collaborate on product development, marketing and sales engagements. The announcement being made at the Wincor World 2003 IT Fair and Forums for Retail and Banking demonstrates a shared vision for technology in the retail and banking marketplaces. It combines the particular expertise both companies have drawn from their own perspectives on the retail and banking marketplaces. As a result of this collaboration Wincor Nixdorf and Microsoft will be able to deliver new solutions for customers in these markets and enhanced Wincor Nixdorf products based upon current and planned Microsoft core technologies and embedded operating systems.

This new agreement between Wincor Nixdorf and Microsoft is built on a long and fruitful relationship, as illustrated by key successes in sales and product development. For example, the two companies worked together to deploy the new Microsoft® Windows®
XP Embedded operating system in combination with the Wincor Nixdorf BEETLE POS system and Trading Post POS application at Metro Cash & Carry and Kaufhof Warenhaus AG. Results such as these stimulated discussions about establishing a broader, more proactive relationship.

“As a market leader in our markets we strive to offer our customers access to latest technologies protecting their investments by using standards and open platforms,” noted Karl-Heinz Stiller, President and CEO of Wincor Nixdorf. “Combining our strength and experience this collaboration with Microsoft offers our customers real business value in the form of stable IT solutions today and a roadmap to follow as their business evolves in the future.”

Both companies have a vision of the future of retail and banking technology based on integrated solutions and low total cost of ownership. The Microsoft .NET Framework will make this vision a reality by enabling integration of “best-of-breed” and legacy software applications, while the Windows XP Embedded operating system supports a variety of hardware devices and is well-suited for deployment in retail stores and retail banking Wincor Nixdorf is targeting growth in key application segments such as self-service solutions for banks and point of sales solutions for retailers. The company offers a variety of solutions for traditional and new delivery channels based on technological innovation and in-depth knowledge of its target sector.

As a result of this alliance, Wincor Nixdorf will be making deeper use of Microsoft technology in Trading Post and other of its products. The company participated actively as a Joint Development Partner for Windows XP Embedded, Microsoft’s new “componentized” operating system for POS applications. Building on this relationship, both companies have agreed to evaluate Wincor Nixdorf products including Trading Post for migration to the .NET architecture. Compelling benefits such as more cost-effective product development, faster time to market and standardized system integration can be achieved through the Microsoft .NET Framework.

In addition, the two companies will work together to extend Wincor Nixdorf’s in-store systems focus to additional areas of the retail enterprise. And the alliance contemplates creation and execution of joint marketing activities, as well as training for both companies’ sales personnel on Microsoft technology and Wincor Nixdorf products.

“This advancement in the relationship between Microsoft and Wincor Nixdorf is excellent news for the retailer and banker,” said Simon Witts, Vice President of Sales and Marketing for Microsoft’s EMEA (Europe, Middle East and Africa) region. “Two strong companies, sharing a common vision for technology and consciously collaborating to meet their specific needs, will provide tangible benefits for the retail and banking communities.”

About Microsoft

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.

About Wincor Nixdorf

Wincor Nixdorf, headquartered in Paderborn, Germany, offers IT-based products combined to form hardware and software solutions and associated services to the retail and retail-banking industries. The focus is on complete offerings to produce lower process costs while adopting a full customer-led approach, and to support the corresponding changes inside customer organizations.

The company’s range of offerings runs from IT consulting and planning through to implementation of proposed solutions and a service portfolio to cover the installed base throughout the entire product life cycle. In addition, the company also offers outsourcing arrangements, taking direct responsibility for complete service packages. Wincor Nixdorf’s core competencies can be found in its solutions offering to organizations with a heavy “branch” bias, also in its understanding of all consumer-related processes — with a particular lean towards self-service solutions. As a result, businesses are also addressed in the lottery, postal services, service station and hospitality sectors.

The company employs approximately 4,600 people and has revenues of EUR 1.35 billion (fiscal 2001/02). Wincor Nixdorf is represented in over 70 countries across the world, 28 of these via its own subsidiaries. With its automated teller machines and point-of-sale systems, the company is the market leader in Germany and the Number 3 worldwide.

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