Tongfang and Microsoft Agree to Enhance Cooperation in Promoting Genuine Software Use in China

LOS ANGELES — April 6, 2006 — Tsinghua Tongfang Co. Ltd., China’s third largest PC manufacturer, today signed a genuine Windows® cooperative engagement agreement with Microsoft Corp. According to the agreement, the two companies are committed to working together to promote the use of validly licensed versions of Microsoft® software products on Tongfang-branded personal computer products for the Chinese market through joint marketing and other engagement. The agreement will help enhance the use of genuine software, and the respect for and protection of intellectual property.

Rong Yong Lin, chairman of Tongfang, and Tim Chen, corporate vice president and CEO of the Greater China Region for Microsoft, signed the agreement on behalf of the two companies at a ceremony in Los Angeles, attended by Chinese Vice Premier Wu Yi, who is visiting the United States for economic and trade talks with U.S. government representatives. Software legalization and cooperation between Chinese and U.S. information technology (IT) companies are high on the agenda for the talks.

“Tongfang intends to purchase licenses of Windows worth $120 million in the next three years for the Chinese market,” Rong said. “The pre-installation of Windows genuine software is not only good for Microsoft’s business, but for Tongfang’s as well by enhancing our branding and overall business development.”

“Microsoft is willing to invest in the promotion of genuine software, because we know a healthy intellectual property rights environment is the foundation for building up China’s knowledge economy,” Chen said. “Microsoft is committed to working with partners to ensure that our customers get the most out of their PCs through the use of genuine software.”

Recently, the Chinese government has called for state-owned enterprises to take the lead in using genuine software as a way to protect intellectual property and lay the foundation for building up an innovation-driven economy.

About Tongfang

The computer division of Tsinghua Tongfang is dedicated to technology and product innovation and focuses on the R&D, manufacturing, sales, marketing and services of computer products and related peripherals. The products include desktop, laptop, server, digital devices and industry solutions.

Tsinghua Tongfang has been among the top three computer makers on China’s mainland since 2000. It became one of the top six in Asia-Pacific for the third time in 2003.

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.

Microsoft and Windows 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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