Internet Phones The End to End Solution Wireless I.T. ‘99

1. Internet PhonesThe End to End SolutionWireless I.T. ‘99 Dave Marutiak Business Development Manager Wireless Telephony Business Unit Microsoft

2. Windows 98 Windows 2000 Visual Studio Desktop Windows NT Embedded Windows CE Platform Builder Intelligent appliance Micro-browsers Smart Cards Services Smart object Information Access Servers

3. Windows 98 Windows 2000 Visual Studio Desktop Windows NT Embedded Windows CE Platform Builder Intelligent appliance Micro-browsers Smart Cards Services Servers Smart object Relative Roles +ISVs – Value added software +OEMs and IHVs Platform hardware, other components End Users Microsoft’s Software Platforms

4. Pavilion Partners • Compaq – Wireless LAN • Socket – Phone cards for GSM, CDMA • WirelessKnowledge – Revolv • AvantGo – Avantgo.com, Enterprise Server • LiveMind – WishPad Synch and Wireless • MobileQ.com - MobileQ.com Software Platform

5. Pavilion Partners (cont) • SmartServ Online - Pocket IQ • Infowave Software - Infowave for the Net, Infowave for Exchange, Symmetry • GoAmerica - Wireless ISP • Sierra Wireless - Air Card 300 • BellSouth - Wireless Data Network • RIM - BlackBerry Service

6. Market Directions Wide Variety of Devices Wide Variety of Content Wide Variety of Connectivity Options

7. Which Path Will It Take? Phones are with you, so they grow larger screens over time Sweet Spots Palm sized devices are more useful, so they grow wireless

8. How Many Will There Be? Sweet Spot? Neopoint ISVs Casio Ericsson Denso Nintendo Epson Palm Nokia

9. Device Categories • Basic services phone (voice only) • Feature Phone (on-line functionality only) • Smart Phone (on/off-line functionality) • PC Companions (e.g., Palm PC, Handheld PC) • Horizontal Devices (e.g., automotive) • Vertical Devices (e.g., trucking fleets)

10. WebTV Pagers Mobile Phones Palm PCs Laptops AutoPC Kiosks Desktop PCs MSN Mobile - Objective • Give mobile users best-in-class services that provide users optimized accessto their information & relevant content anywhere, anytime and on any device • Provide open platform that integrates carrier and 3rd-party services to ensure differentiation

11. MSN Mobile Strategy (Cont.) • Provide a platform for integrating MSN and carrier or 3rd-party services • Private labeling, co-branding • Platform supports: • Passport • Synchronization • Personalization • Aggregation • PC as management console for wireless services Investor Expedia Sidewalk Hotmail Address bk Carrier 3rd Party Platform

12. Hotmail Email Contact List Expedia Directions Itinerary Travel Information Investor Quotes Business Headlines Sidewalk Directory Entertainment Listings MSNBC & Partners Local News National News Weather Sports Entertainment Properties

13. What will the content be? Mobile HTML (Medium) Wireline HTML (Heavy) Mobile HTML (Light) Today’s providers of content to mobile devices face a growing problem! Mobile CHTML Mobile WML

14. XML/XSL XSL For WAP Phones XML Pages XSL For HTML Phones XSL For CHTML Phones The W3C has provided the long term solution XSL for TVs

15. Trends and Forecast: Groupware Seats Source: Gartner Group By 2000 groupware seats will double to reach 110 million seats

16. Enabling Corporate Access • Available today via many of our partners, as seen in the Pavilion • Moving to explicit support at the platform level of our products: • Windows 2000 • Exchange 2000 Server • Active Directory • Moving to software as a service: • Scalability and reliability improvements • Carrier hosting options

17. PDAs Laptops With Modems Wireless PDAs Smartphones Desktop LAN, Cable, Wireline Auto PC Phones with Browsers • Web Access • Kiosks • Smart TVs • Friends Computer Two Way Pagers Phones Connected to Laptops and CE Devices Mobile Access to Corporate Data

18. Scalable Platform Extension of Desktop • Data Intensive“Vertical” Applications • Full E-mail - attachments • Access to the “Web” - graphics • Full Desktop “Synchronization” • Interactive“Vertical” Applications Interactive • PIM • Selective E-mail, Fax, Voice • Voice Integration • Query Web Sites/Intranets • Interactive paging • Acknowledgment • Broadcast Alerts • Alphanumeric • Voice paging • Numeric

19. Product DirectionsClients PC Companion Connectivity Microbrowser Technologies Phone Operating Systems Automotive Applications Smart Card Offerings

20. Wireless Communications Kit • CF card and connection cables from vendors (such as Socket Communications) • CD ROM that includes: • Set-Up Wizards • Web/Email/Content clients • ActiveSync 3.0 • Supports PPCs and HPCs • Lower retail prices • Carrier branded/distributed • Supporting a wide variety of protocols and carriers

21. Wireless PPC/HPCs • Wireless TCP/IP • Bluetooth capabilities • Pocket Internet Explorer • IMAP4 Email Access • Server side synchronization • Tunneling protocols (PPTP) • SMS/Push Notification capabilities • And future capabilities such as: • Multi-mode microbrowsers • GPRS capabilities

22. Popular Palm PC Services • Video Clips • Fan’s Zines • Audio Player Casio E100 • Maps • Gaming

23. Browsers Vary by Clients MS Microbrowser (HTML/HTTP or WML/WSP) Pocket Internet Explorer (HTML / HTTP) Internet Explorer (HTML XML / HTTP)

24. Microsoft’sMicrobrowserTechnologyforFeature Phones

25. MMT V1 Features • Configurable start/launch pages • Support simple HTML text display • Browsing and link selection • Direct connection to web servers • Favorites/bookmarks • Cookies • vCard, and interface to in-phone directory • Multilanguage support with run-time selection • Alerting - Support for SMS 1-way/URL launching • OEM & User Configuration options

26. Wireless Product Adaptation Kit • The WPAK is the integration environment for OEMs to incorporate MMT into products • There is no charge for the WPAK or MMT • WPAK includes: • Full source code for MicroBrowser • Fully documented isolation APIs • Emulation software • Test suites • Localization software • OEMs and ISVs have considerable flexibility in building new devices and clients

27. What about WAP? • Microsoft joined WAP as vendor/ISP • Microsoft has clear goals for participating in the WAP Forum: • meet customer needs and directions • actively work to evolve WAP • convergence with Internet standards • support for existing content formats • end to end solutions for customers • Both W3C and WAP have agreed to work towards wireless convergence

28. MMT V2 • WML/WAP support • Dual mode (HTML/WML) browser • Graphics support, color support • Additional offline data access • Associated applications support • etc.

29. Network Topologies WAP = Applications + Gateway + MicroBrowser WAP Gateway App/Web Server (Exchange/MCIS) WAP MicroBrowser Binary WML W3C Architecture = Applications + MicroBrowser App/Web Server (Exchange/MCIS) HTML MicroBrowser HTML/XML

30. MicrosoftSmartphoneTechnology

31. Smart Phone Technology • On/Off-line functionality • Device consolidation w/PDA + phone + pager in single device • Rich multimedia and Internet applications • Standards based microbrowser technology • Optimized Windows CE OS • Next generation network (2.5 and 3G) ready

32. What are these phones? • No, we’re not announcing we’ll build phones • Microsoft has built a few dozen phones: • using off the shelf hardware components • GSM was selected due to the size and availability of RF modules • We will use these phones • to demonstrate prototypes for OEMs and carriers • conduct internal trials • develop service concepts • usability testing

33. Summary of Microsoft Phone Products Today: Microbrowsers Feature Phones In the works: Dual Modes for Operating Systems Feature Phones for Smart Phones Wireless OS Wireless OS HTML and WAP Microbrowser HTML Microbrowser WAP Real Time OS RTOS RTOS Bearer Channels (CDMA, TDMA, GSM, PDC, PHS, etc.)

34. Windows CE For Wireless Automotive Applications

35. PC Companions FrequentlyUsed in Cars • Personal Information • Not location dependent • Same as my PC Comp • PIM, Email, etc. • Automotive Specific • Navigation • Traffic • Diagnostics • Location Based Information • Retail locations • Shopping opportunities • Advertising

36. Two Auto Subnetworks • A system for controlling and monitoring the vehicle’s functions • A system to integrate information and entertainment devices plus…. • A system to provide wireless communications with the world

37. Auto PC Capabilities • Forms/region manager • Audio manager • Tuner control • Vehicle I/O • Speech recognition • Position/navigation • CD file system • Critical Process Manager • Address Book • Power Management • Inbox • Infrared • Telephony control • Common GUI Controls • Wave I/O • CD Changer • Core Windows CE Guinness Book of World Records 1999, pp 274

38. AutoPC Directions • Larger screens, built in at factories • Games and other entertainment • DVD video • MS Audio • Connectivity and synchronization • Laptops, PDAs, desktop, servers via Irda, CF, wireless (cellphone, bluetooth, paging networks) • In-Car Network : wired or wireless • Portable devices can communicate • Speech Recognition • Continuous, conversational interaction • Dictation

39. Smart Card Products A logical extension to Windows, enabling developers to build smart card applications for: • Corporate IT • Medical • Mobile Phone • Personal ID • Travel and Entertainment • Credit/Debit/ECash

40. Value Chain: Proven Model Business • Application • Developer • ISV • Issuer Embedder • Card Manufacturer • Chipmaker Issuer • Service Bureau • In-house Bus. Apps Back Office • SC for Windows • Outlook • Internet Explorer • Personalization • Application Management SC for Windows • Configurable OS • Simulator • VB tools and RTE Chip Mask

41. Windows 95/98 Windows NT Visual Studio PC/SC Kiosks-BackOffice; Windows NT Windows CE Devices HTML Existing systems STB/Internet Terminals - IE, Hotmail Dial Up Networking Intranet access Windows Smart Card

42. Focus on Solutions • A logical extension to Windows for developers to build applications for • Corporate IT • Secure log on, Dial up Networking • Internet Companion • Secure Web access • Personal and Medical ID • Credit/Debit • Ecash • Loyalty

43. GSM SIM Card Support • Support for GSM 11.11 and 11.14 • Native SIM libraries configured in during solution manager • SIM Toolkit API support through extensions within smart card Run-Time Environment • Same mature toolchain • Ships with Option Pack in 1Q ’00 • Products shipping in Q1 ’00

44. Supporting Carrier Deployments • Wireless Knowledge • BellSouth Wireless Data • British Telecom Phase 1 • Focus on Feature Phones • British Telecom Phase 2 • Focus on Smart Phones • NTT DoCoMo • Focus on Corporate Access • Deutsche Telekom MobilNet

45. LAN and PAN Directions • 802.11 - business applications • 2-11M speeds (and ever higher) • Already supported within Windows CE • homeRF - consumer applications • .8-1.6 M speeds • Bluetooth - replace IR and tethers • 1M for consumer and business apps Enabling many new devices, services, and application classes

46. Summary • Microsoft continues to ramp up our commitment to wireless telephony: • Wireless Knowledge services • Wireless support for Exchange • MSN Mobile content offering • Microbrowsers • Phone operating systems • Automobile applications • Smart cards and SIMs • Additional LAN and PAN support