According to the two companies, Microsoft's Windows Embedded for Point of
Service (WEPOS) operating system will come pre-loaded on IBM point-of-sale,
self checkout and self-service kiosks offerings..  The combined solution
provides retailers and hospitality operators a simple, easy-to-manage
point-of-service platform for empowering workers, and connecting consumers
to products and information in a seamless, integrated retail environment.

"This is about helping our clients win in the marketplace by providing them
a choice of solutions to enable them to more efficiently manage their
businesses, and better serve increasingly demanding consumers,"
said Alan Outlaw, Business Line Executive, IBM Point-of-Sale Solutions..
"Windows Embedded for Point of Service gives us yet another option for
clients who want to add Windows as part of their IT infrastructure."

Microsoft Windows Embedded for Point of Service is a point-of-service
operating system platform based on Microsoft Windows technologies optimized
for the retail industry.  It is the first point-of service operating system
to provide "plug-and-play" functionality for retail device peripherals, with
IBM being a leading retail vendor to offer Windows Embedded for Point of
Service as a pre-installed option to its client.

Windows Embedded for Point of Service is offered pre-installed on IBM
AnyPlace Kiosk, Self-Checkout and SurePOS 700, 500 and 300 point-of-sale
systems, IBM's premier open system hardware platforms for retail and
hospitality industries.  The Windows Embedded for Point of Sale operating
system fully supports standard retail applications and device peripherals,
and the solution includes an easy upgrade path to Windows XP for Embedded
Systems or Vista for Embedded Systems.  The pre-loaded IBM systems will have
increased language support for 33 dialects, and support a number of industry
standards such as Biometrics, Electronic Journal, Bill Acceptor, SmartCard
and ClearInput.

The powerful, retail-oriented offering will be pre-configured to support and
easily connect to a broad range of retail applications and devices.
Its standards-based framework and built-in networking capabilities enable
fast development and delivery of new POS solutions. 

Microsoft also announced today strong growth of Windows Embedded in the
retail market. According to a recent report* published by IHL Group Inc., a
retail industry research firm, the total number of Windows Embedded Point of
Service users in North American grew by 250 percent in 2007. In a second
study with RIS News, IHL also found that 63 percent of retailers were
seriously considering a Microsoft Windows Embedded operating system for
their next POS purchase.

"Retail and hospitality organizations globally are keenly focused on making
the in-store shopping experience compelling for consumers while also looking
for ways to drive down costs through improved efficiencies," said Ilya
Bukshteyn, director of marketing for Windows Embedded at Microsoft. "This
demand signals the need for technology solutions that deliver a smart,
connected, service-oriented, experience.
The Windows Embedded business collaboration with IBM is a terrific example
of the positive response to our embedded point-of-service retail and
hospitality strategy."

Additional information on Microsoft's Windows Embedded for Point of Service
platform can be found at http://www.microsoft.com/windows/embedded/wepos, or
at the WEPOS blog site at http://blogs.msdn.com/pointofservice.  As a way to
streamline the solutions validation phase, retailers and hospitality
operators will be able to "try before they buy" the solution for up to 120
days before making a purchase decision.

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

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