TOKYO, June 27 /PRNewswire/ --

- Both companies to focus on Software as a Service and the creation of an
ecosystem to encourage new SaaS application development

KDDI Corporation and Microsoft Corp (Nasdaq: MSFT) today announced that
they have reached an agreement to jointly develop and provide applications
using a Software as a Service (SaaS) delivery model for corporate users. The
companies will also create an ecosystem to provide extensive support to
independent software vendor (ISV) partners and spur the development of new
service-enabled applications to drive momentum for new SaaS applications. The
companies will embark on joint marketing activities to cultivate the adoption
of SaaS among ISVs in Japan. They will also jointly educate the corporate
market on the benefits of the SaaS model.

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Under the agreement, KDDI will use Microsoft(R) Connected Services
Framework as a foundation for providing services to customers. The first SaaS
application will be built on Microsoft Solution for Hosted Messaging and
Collaboration, a carrier-grade platform that offers enterprise-class e-mail
and document-sharing services to corporate customers. Subscription is a
monthly fee-based model, covering mobile and fixed-line communications and
the SaaS application. The service will create a seamless work environment by
allowing corporate customers to access their data on a PC in the office or on
a mobile phone when they are on the go. This initiative is a demonstration of
a service-delivered solution that combines services, software and hardware to
provide a seamless user experience.

A support programme will be available to software vendors and corporate
solution partners to ensure that they have access to resources to enable them
to collaborate as well as to develop and market their SaaS applications.

About KDDI Corporation

KDDI is a diversified telecommunication operator formed by the merger of
DDI, KDD and IDO in 2000, and is the only domestic company that provides both
mobile communication service and broadband service. The number of subscribers
to the mobile phone services under the au and TU-KA brands is over 27 
million.(i)

The KDDI group companies have turnover of 3,335 billion yen.

At KDDI, aggressive improvement of communications environment in
preparation for the coming ubiquitous network society is underway and KDDI is
aiming to become a "ubiquitous solution company" which provides high
value-added solutions.

(i) Above data is current as of 31 May 2007.

About Microsoft Co Ltd

Microsoft Co Ltd is a subsidiary of Microsoft Corp, located in Japan.

About Microsoft

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

About Microsoft EMEA (Europe, Middle East and Africa)

Microsoft has operated in EMEA since 1982. In the region Microsoft
employs more than 12,000 people in 60 subsidiaries, delivering products and
services in 138 countries and territories.

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