Microsoft Demonstrates Windows 7 and Windows Phone 7 Connected Experience Benefits for the Retail and Hospitality Industry at NRF 2011

Shop Direct Group and Tesco demonstrate how Windows 7 and Windows Phone 7 technology connect stores, operations and the mobile shopper from desktops to data centers to digital devices.

NEW YORK, January 10, 2011 - Microsoft Corp. today announced that business-critical Windows 7
applications for the retail and hospitality industry will be demonstrated in
its booth (No. 836) this year at the National Retail Federation's 100th
Annual Convention & Expo. The demonstrations will showcase how Windows 7
enhances connected store, customer and operations experiences on the desktop
as well as via an array of mobile and in-store devices, including
smartphones, point-of-sale (POS) devices, self-service transactional kiosks,
and informational kiosks, including digital signage.

(Logo: photos.prnewswire.com/prnh/20000822/MSFTLOGO)

"There are three pillars to our strategy in the retail industry:
connecting your customers, connecting your stores and connecting your
operations," said Simon Witts, corporate vice president, Enterprise and
Partner Group (EPG), Microsoft (
investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=21835).
"Connectedness prevails- and for good reason. It's no longer good enough to
have the right product in the right place at the right time. Retailers need
to surround their customers with information to inform and motivate
purchasing."

Engaging and serving shoppers at an individual, demographic and local
level is key to attracting and retaining customers in an increasingly
connected and real-time world. Shopping has evolved to become part of the
increasingly connected lifestyle of today's shoppers who are digital, social,
mobile, enabled and informed. As a result, retail channels no longer cross;
they merge. Connected commerce surrounds the customer shopping experience
from the living room, to the Web, to the store - enabling customers to find,
experience and purchase. For example, a retail customer's connected
experience is enhanced through the mobile shopping experience enabled by
Windows Phone 7, as well as through engagement with Windows 7-based
touch-enabled devices in stores.

Modern store architectures built on Microsoft platforms also help make
staff and resources more effective through automating system administration,
improving sales productivity and improving stock management. Windows 7
enhances user productivity with easy-to-use tools for direct information
access, federated search and navigation. Windows 7 technology is familiar,
facilitating training and helping make employees more productive at the store
or on the road. It also enhances PC management by enabling easy upgrades and
management of desktop PCs and in-store devices, and enabling mobile workers
to be managed with ease.

An efficient retail operation is fueled by an integrated back office with
real-time store data feeds, integrated retail management and enterprise
resource planning (ERP), multichannel capability, and ubiquitous business
insight. Windows 7 for Embedded Systems, for example, enables embedded
systems design that help retailers and hospitality businesses connect to IT
infrastructure, increase staff efficiency and improve customer satisfaction.
An array of Windows Embedded products, from componentized to off-the-shelf,
gives embedded developers the flexibility to build and manage a range of
devices - including kiosks, point-of-sale devices, digital signage,
communication devices and peripherals - on a single platform. The Windows
Embedded platform also facilitates connectivity between point-of-service and
Windows-based enterprise IT systems, including customer relationship
management (CRM), inventory, sales tools and business intelligence.

"Microsoft and its partners continue to help retail companies succeed in
today's competitive global marketplace by meeting the demand for a highly
personalized and connected shopper experience," said Brendan O'Meara,
managing director, Worldwide Retail and Hospitality, Microsoft. "Microsoft
helps retailers deliver a consistent shopping experience through seamless
multichannel integration, innovative technologies, and mobile and new social
networking channels. Our Operations 2.0 initiative and vision for the
automated store focus on rapid delivery of strategic line-of-business
solutions connecting customers, stores and operations, while minimizing
investment in infrastructure."

Following are examples of how global leaders in the retail industry have
realized the benefits of Windows 7 in improving the mobile shopper experience
and business efficiencies while cutting operational and technology costs.

Shop-at-Home Retailer Helps Mobile Employees Work Efficiently From
Anywhere

Home shopping and online retailer Shop Direct Group is one of the largest
online and shop-at-home retailers in the United Kingdom. The company, which
employs 10,000 people, incorporates 11 well-known brands, including
Littlewoods, Very, Woolworths, Marshall Ward, Kays and Great Universal.

Shop Direct Group is embracing mobile working as a way to reduce office
costs and increase flexibility for staff. To support this strategy, the
company is deploying Windows 7 with DirectAccess on more than 800 portable
computers. Mobile personnel can now access the corporate network seamlessly,
wherever they are working and online. The IT team also can update computers
remotely, increasing security and minimizing management costs.

Shop Direct Group mobile workers can now access key applications and data
seamlessly from outside the office by connecting to the corporate network and
work productively from virtually anywhere in the world. As a result, a range
of new flexible and remote working opportunities will help Shop Direct lower
office real-estate costs, minimize business travel, and support its corporate
environmental sustainability programs.

Windows Phone 7 Mobile App Connects Tesco Real Food Brand With Customers

One of the largest retailers in the world, Tesco plc has more than 2,500
stores in the U.K. and more than 5,000 worldwide. Based in Hertfordshire,
U.K., the company has 472,000 employees and is the grocery market leader in
the U.K. and No. 3 worldwide.

Tesco has an online grocery shopping application for Windows Mobile
phones, which allows shoppers to buy products directly from their
smartphones. Building on that, Tesco created an immersive shopping
application for Windows Phone 7 called Tesco Real Food. The free application
is available for download now from the Windows Phone Marketplace. Extending
the popular Tesco Real Food website to Windows Phone 7 users, the application
provides recipes, cooking tips and information about the grocery products
Tesco stores carry. Shoppers are able to check ingredients for recipes, get
tips and ideas, and plan meals right from their Windows Phone 7 device while
shopping in store. More information is available at www.tesco.com and
www.tesco.com/food.

About Microsoft in Retail

Microsoft is the leading provider of global retail information technology
solutions. Microsoft is No. 1 in store systems, in terms of retail
point-of-service operating systems. Microsoft also is the leader in business
intelligence with the vast majority of retailers using Excel as a decision
support tool. Microsoft also leads in digital marketing with the most
comprehensive end-to-end solutions. Its digital marketing solutions range
from the stack (Windows, Windows Server, SQL Server, .NET, Visual Studio) to
online (Commerce Server) to mobile (Windows Mobile), and from digital
advertising (Bing, adCenter) to entertainment (Xbox, Xbox LIVE, Zune,
Silverlight). Microsoft delivers connected experiences for stores, commerce
and the enterprise via the "three screens" (PC, browser, mobile) for easy
access across your digital world.

Microsoft's Retail Group provides software that helps retailers thrive in
today's competitive global marketplace by meeting the demand for a highly
personalized and connected shopper experience. Microsoft helps retailers
deliver a consistent shopping experience through seamless multichannel
integration and via innovative technologies and mobile and new social
networking channels. Through a combination of Microsoft- and partner-based
solutions, retailers can turn data into insight, ideas into action and change
into opportunity. More information about Microsoft's Retail Group can be
found at www.microsoft.com/retail.

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.

Wendy Grover of Microsoft Corp., +1-425-705-7609, wegrover at microsoft.com; or Chris McManus of Narrate Public Relations, +1-718-832-9154, v-chmc at microsoft.com, for Microsoft Corp.: NOTE TO EDITORS: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at www.microsoft.com/news. Web links, telephone numbers and titles were correct at time of publication, but may have changed. For additional assistance, journalists and analysts may contact Microsoft's Rapid Response Team or other appropriate contacts listed at www.microsoft.com/news/contactpr.mspx.