REDMOND, Washington, July 29 /PRNewswire/ --

- A new era of growth and expansion includes software plus services.

Microsoft Corp today announced it will expand its automotive offering
beyond software to include services. Microsoft's Automotive Business Unit
(ABU) continues to enhance in-vehicle experiences by providing automakers 
with new and innovative ways to meet increasing consumer expectations. As a 
key part of these innovations, Microsoft announces the immediate availability 
of Microsoft Live Search for Devices, the first of many new services for its 
automotive platforms. Live Search for Devices enables partners to develop 
applications, including local search services, for in-vehicle infotainment. 
Live Search for Devices will be available for easier implementation in 
Microsoft's automotive platforms, Windows Automotive and future releases of 
Microsoft Auto.

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Microsoft has a history of delivering award-winning software platforms
for in-vehicle systems that offer fresh and innovative infotainment
experiences for consumers worldwide. As one of the fastest-growing businesses
at Microsoft, Microsoft Auto and Windows Automotive help partners reduce
time-to-market, control costs and provide flexible solutions for in-vehicle
infotainment. Best known for providing the software that powers Ford SYNC in
North America, Fiat Auto Group's Blue&Me in Europe and South America, and
state-of-the-art navigations solutions developed by world-leading Japanese
manufacturers, Microsoft is a committed software technology partner for the
automotive industry. ABU is developing a platform targeted for release in
2009 that enhances Microsoft's current in-vehicle products into an integrated
automotive solution.

In what is a challenging time for the automotive industry, Microsoft is
increasing its investment in the Automotive Business Unit by more than 30 per
cent this fiscal year. The commitment includes expanding its engineering
resources for the in-vehicle software platforms that deliver new levels of
partner innovation and create engaging, exciting experiences for consumers.

As Microsoft accelerates its development of in-vehicle platforms and
enters into a new era of growth with software-plus-services solutions, ABU is
transitioning from incubation to a maturing business with volume growth and
expansion. As Martin Thall, who has guided ABU through the start-up period,
moves on to take on a new challenge, Tom Phillips has been named the general
manager of ABU to lead the business in the next phase. Thall has been an
excellent leader during ABU's entrepreneurial phase and has established
Microsoft as a trusted global partner to the automotive industry.

"I want to thank Martin for the phenomenal job he has done. His
leadership and business-development acumen were exactly what ABU needed to
establish the platform and break through to the next level," said Tom
Gibbons, corporate vice president, Specialized Devices and Applications Group
(SDA) at Microsoft. "As the business evolves, we look to Tom Phillips, with
his expertise in bringing new software and services businesses to maturity,
to continue to grow and expand the business."

Phillips has been with Microsoft for 16 years, including senior roles in
software development, hardware development and field sales. Since joining
Microsoft, Phillips has shipped more than 20 products, including a number of
platforms, and has been responsible for bringing several new businesses to
maturity. In his new role, Phillips will lead both ABU and SDA's Microsoft
Global Services Group.

About Microsoft Automotive Business Unit

The Microsoft Automotive Business Unit is a dedicated partner to the auto
industry, providing innovative technologies and flexible software platforms
to help deliver simple, more reliable and cost-effective in-car infotainment
systems. Developed closely with automakers and automotive suppliers, the
award-winning Microsoft Auto and Windows Automotive software platforms
connect drivers with a wide range of devices, services and technology while
on the go, including hands-free communication, mobile device integration,
customised navigation and high-fidelity digital entertainment. More
information can be found at http://www.microsoft.com/auto.

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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