Finds New Business Efficiencies and Increases Online Sales With Microsoft Commerce Server 2002

REDMOND, Wash., Nov. 30, 2004 — Microsoft Corp. today announced that Costco Wholesale Corp. has chosen Microsoft®
Commerce Server 2002 to drive the online store. Commerce Server, part of Windows Server System (TM) , is an industry-leading e-commerce server that enables customers to rapidly build online commerce solutions. Through a joint development program with Microsoft for the 2006 version of Commerce Server and Commerce Server 2002 Feature Pack 1, realized increased site performance and scalability, resulting in a system able to support one of the largest online retailers.

“Our Commerce Server solution is providing a solid return on investment,” said Luke Friang, director of e-commerce technologies at Costco. “The functionality of our Commerce Server solution, combined with our own customization, has allowed our merchants and site managers to create and manage their categories, products, discounts and other general content needs without the assistance of IT. Our merchants and site managers have the tools they need to manage their business, which allows IT to focus on delivering new solutions to drive the business. We are saving both time and money.”

Web Site Hits Record for Peak Order Day faced real challenges when it came to providing a new, more flexible infrastructure for its business. Commerce Server 2002 Feature Pack 1, a free download for Commerce Server 2002 customers, facilitates business data staging and management. This allows to easily add new product categories and offerings instead of relying on busy IT staff to do so. These features translate into increased productivity for employees and faster time to market for new merchandise. Shortly after going live with Commerce Server 2002 Feature Pack 1, set a new online revenue record and site record for peak orders.

“Commerce Server helps Costco connect quickly and efficiently to line-of-business applications and better streamline its order management processes.” said Ted Kummert, corporate vice president in the Business Process and Integration Division at Microsoft. “We have received very positive feedback from our customers telling us they get greater value from their Commerce Server solutions thanks to new IT and business management tools delivered in Feature Pack 1.”

The interfaces in Feature Pack 1 are a preview of the investments being made for the next full Commerce Server release in early 2006. The next version will enable customers to accelerate the delivery of online services and products and integrate order management processes more tightly with trading partners and customers. Faster time to market is particularly critical with online commerce solutions, where a rapid response to change is essential to maintaining a competitive edge.

About Windows Server System

Microsoft Windows Server System is a comprehensive family of server software providing the infrastructure for IT operations, application development, integration and information work. Built on the Windows Server (TM) operating system and designed with Common Engineering Criteria, Windows Server System is focused on making it easier for IT professionals to connect and manage their IT environments. Because Windows Server System products are integrated for enhanced manageability and security, they help organizations reduce complexity and lower costs. All Windows Server System products support open industry standards including those based on XML to promote interoperability with other platforms. More information on Windows Server System can be found online at .

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