Microsoft and Tully’s Coffee to Showcase Wi-Fi Capabilities On Windows Mobile-Based Pocket PC Devices

REDMOND and SEATTLE, Wash., Sept. 25, 2003 — Microsoft Corp. and Tully’s Coffee Corp. today announced plans to launch kiosks equipped with Windows Mobile (TM) -based Pocket PCs to educate Seattle customers about Tully’s new Wi-Fi service on the Cometa Hotspot network while enjoying Tully’s coffee. The kiosks are scheduled to be available in selected Tully’s stores in mid-November.

The Wi-Fi-enabled kiosks will allow customers to get a taste of browsing the Internet, using streaming media, sending an instant message and learning about the Wi-Fi service available at Tully’s Coffee on the latest Microsoft®
Windows Mobile-based Pocket PCs. The latest version of Windows Mobile software automatically detects and supports easy connections to Wi-Fi networks, helping to keep people in touch, entertained and connected.

“Seattle is recognized as one of the most wireless cities in the country, as well as the unofficial national capital of coffee lovers,”
said Peter Shirley, director of Microsoft’s Mobile Devices Division.
“We’re simply combining two experiences that Seattle customers love, through the ease and familiarity of our Windows Mobile software and Cometa’s fast and reliable Wi-Fi access in the comfortable atmosphere that Tully’s provides.”

“Earlier this month, Tully’s Coffee recognized customer demand for access to high-speed wireless Internet networks and announced plans to deliver Wi-Fi access from Cometa Networks,”
said Peter Hoedemaker, vice president of retail operations for Tully’s Coffee.
“We are pleased to announce this upcoming opportunity for our customers to become acquainted with the combination of Wi-Fi access and the powerful and familiar experience on Microsoft’s Windows Mobile-based Pocket PCs.”

“Cometa is pleased that Microsoft is using the Cometa Hotspot network to showcase Wi-Fi on its Pocket PC devices,”
said Cometa CEO Gary Weis.
“We hope customers will enjoy accessing our dependable, fast and always-on network on Windows Mobile-based Pocket PCs and laptops to check e-mail, listen to music or access their corporate network while benefiting from the freedom to choose from multiple Wi-Fi service providers and pricing plans.”

Wi-Fi, a popular standard for wireless local area networks (LANs), is rapidly becoming a preferred standard for accessing high-speed Internet connections without wires.

About Windows Mobile-Based Pocket PCs

Windows Mobile-based Pocket PCs, the next-generation personal digital assistants (PDAs) from Microsoft and industry partners, offer customers the best way to connect to their most essential information while away from their desk and are versatile enough to satisfy the personal needs of today’s busy mobile consumer. Windows Mobile-based Pocket PCs already include a broad range of native business, personal productivity and entertainment applications yet can easily be expanded to adapt to each customer’s changing needs through a continually growing number of industry-standard hardware and software options.

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.

About Tully’s Coffee

Founded in 1992, Tully’s Coffee Corp. is a leading specialty coffee retailer, wholesaler and roaster. Tully’s retail division operates specialty retail stores in Washington, Oregon, California and Idaho, serving premium coffees from around the world, along with other complementary products. The wholesale division distributes Tully’s fine coffees and related products through offices, food service outlets and leading supermarkets throughout the West. Tully’s international division supports Tully’s licensees in Asia. Tully’s corporate headquarters and roasting plant are located at 3100 Airport Way S. in Seattle. For more information, call (800) 96-Tully (968-8559) or visit the Web site at .

Microsoft and Windows Mobile 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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