REDMOND, Washington, February 11 /PRNewswire/ --

- Acquisition of popular software and mobile services company will 
enhance Microsoft's ability to broadly deliver compelling mobile experiences.

Microsoft Corp today announced it has entered into an agreement to
acquire Danger Inc, the company responsible for the software and services
powering many popular consumer handsets. The acquisition will align Danger's
nearly 10 years of expertise in the mobile consumer space with Microsoft's
vision to provide innovative and compelling mobile experiences to a growing
base of customers.

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"Microsoft is a global leader with our Windows Mobile software and
expanding mobile services," said Robbie Bach, president of the Entertainment
and Devices Division at Microsoft. "The addition of Danger serves as a
perfect complement to our existing software and services, and also
strengthens our dedication to improving mobile experiences centered around
individuals and what they like."

The Palo Alto, California-based company provides services that allow
people to keep in touch, stay organised and keep informed while on the go
through real-time mobile messaging, social networking services and other
applications -- all blended together on a single phone that is intuitive and
customisable.

"Danger continues to provide an effortless and fun mobile experience for
consumers," said Henry R. Nothhaft, chairman and CEO of Danger Inc. "Now by
combining our uncompromised application software and powerful back-end
service with Microsoft, we can expand our innovative service offerings even
further and take mobility to a new level."

A Grasp on Consumers

Danger has connected with a customer base that is young and enthusiastic,
internet-savvy and socially inclined. The Danger team has a deep
understanding of consumers and a hold on what people want from mobility,
making it an ideal group to work with in delivering connected experiences.
Adding Danger to the Entertainment and Devices Division will provide
Microsoft with additional assets and resources that will accelerate the
company's entry into the consumer space and complement the company's focus on
delivering innovative technologies and services that connect people's
entertainment and information.

Danger will further expand people's mobile options by bringing a variety
of established partnerships to the mix. Microsoft software can be found on
more than 160 mobile phones made by more than 50 hardware partners, which are
offered through more than 160 mobile operators around the world.

Defining the Mobile Experience

Through focused efforts Danger has successfully delivered a software and
services platform to the mobile mass market. Applications on Danger-powered
handsets include HTML web browsing, instant messaging, games, multimedia,
social networking, web e-mail and personal information management
applications.

Combining these services with Microsoft's connected entertainment and
experiences technologies, including MSN, Xbox, Zune, Windows Live and Windows
Mobile, will provide Microsoft with the tools to accelerate its work to
create industry-leading entertainment and communication experiences for
consumers.

About Danger

Danger is a Palo-Alto, California-based software-as-a-service company
that provides mobile operators with an integrated end-to-end solution to
deliver mobile data and internet services to their subscribers.

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 16,000 people in over 64 subsidiaries, delivering products
and services in more than 139 countries and territories.

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