Microsoft Chooses Tissot as New Smart Watch Partner

REDMOND, Wash., July 26, 2004 — Microsoft Corp. today named Tissot its latest Smart Watch partner, and Tissot introduced the High-T touch-screen Smart Watch using MSN®
Direct technology. Known for more than 150 years for its stylish Swiss designs and product innovation, Tissot created this Smart Watch with unique touch-screen navigation and a sleek, satin-finish, stainless-steel design.

“Smart Watches for MSN Direct like the High-T really up the ante for what customers can expect from their wristwatches,” said Bill Mitchell, founder and corporate vice president of the Smart Personal Objects Technology (SPOT) initiative at Microsoft. “Tissot leads though innovation and high performance, so this alliance is a natural match and an important step in the evolution of Smart Watch design.”

With its exclusive tactile technology, the Tissot High-T Smart Watch enables wearers to simply touch their watch to receive news, weather, sports and stock updates; appointment reminders; and other information through MSN Direct. The Tissot High-T is available for purchase at fine jewelry stores in select North American markets, and it is the first Smart Watch to have the price of the watch include six months of the MSN Direct service.* Tissot is offering a special white-glove service through which customers can have their Smart Watch activated at the point of purchase.

The first Smart Watches for MSN Direct were unveiled at the 2004 Consumer Electronics Show in January. Subscribers can receive personalized content such as news, weather and stock updates; calendar appointment reminders; and personal messages directly to the watch. Since the launch of Smart Watches, Microsoft has nearly doubled the number of available content channels by extending the offerings to include sports, daily diversions, horoscopes and lottery information. In the past few months, MSN Direct has expanded its service’s geographical reach and worked with watch manufacturing partners, Fossil Inc., Suunto and now Tissot, to introduce enhancements that best meet the needs of consumers.

About Tissot

Innovators by tradition, Tissot embodies 150 years of innovation and Swiss watchmaking tradition. A world leader in the traditional Swiss watch segment, its mission is to offer a wide range of high-quality timepieces at an affordable price. As official timekeeper for the world championships in cycling, motorcycling, fencing and ice hockey, Tissot underlines the sporting values of quest for performance, precision and pushing oneself to the limit. Based in Le Locle in Switzerland and present in more than 150 countries around the world, Tissot is a member of the Swatch Group, the largest watch producer and distributor in the world. For more information visit .

About MSN Direct

MSN Direct, part of the Smart Personal Objects Technology initiative, is a specialized wireless service that combines technology and fashion to deliver customized and personalized information to people. Those interested in learning more about MSN Direct can visit .

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

* You will need a subscription to the MSN Direct service to take full advantage of all watch features. Subscribing to MSN Internet Software or MSN Dial-Up is not required to access MSN Direct. MSN Direct is available to residents in the 50 United States, the District of Columbia and Canada. To receive MSN Direct on an MSN Direct-ready device, you must be within an MSN Direct coverage area; check the current coverage maps available at . Internet access is required for the online activation of your MSN Direct account. A major credit or debit card is required. Activation and service charges will apply. Following your trial period, the then-current price for the standard monthly or annual prepaid MSN Direct service plan will be automatically charged to your credit card until you cancel your subscription. Prices are subject to change. Regular charging of watch is required for use. SAFETY FIRST: Watches can be worn anywhere, so use the service sensibly and safely.

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