Microsoft Windows 98 Second Edition Released to Manufacturing

Update to Windows 98 Delivers Latest Internet Technologies And Enhanced Hardware Support to Consumers

REDMOND, Wash. - May 5, 1999 - Microsoft Corp. today announced that development of the Microsoft^® Windows^® 98 operating system Second Edition is complete and the product has been released to manufacturing. Windows 98 Second Edition is an update to Windows 98 that enhances the leading consumer operating system with the latest Internet, home-networking and hardware technologies. Windows 98 Second Edition will be available preinstalled with new personal computers for consumers and is scheduled to replace Windows 98 on retail shelves this summer. Existing users of Windows 98 will be able to update their system to the Second Edition technologies in the summer via a CD that can be ordered from the Microsoft Windows 98 Web site (http://www.microsoft.com/windows/).

"We're committed to providing timely updates of Windows for consumers to keep pace with the rapid advances in Internet technologies and hardware support," said David Cole, vice president of the Consumer Windows Division at Microsoft. "Windows 98 Second Edition is the next step on an exciting path of Windows-based developments for consumers that will focus on areas such as home networking, the online experience, digital media and entertainment, and PC simplicity."

Internet, Home Networking and Hardware Enhancements

Windows 98 Second Edition offers consumers a variety of new and enhanced capabilities related to the Internet, and hardware compatibility:

• Internet Explorer 5. Microsoft's popular browsing technologies provide breakthroughs in Web performance, usability and flexibility.
• Windows NetMeeting 3. The latest version of NetMeeting^®, Microsoft's award-winning Windows-based conferencing software, brings Internet conferencing capability to consumers by offering enhanced usability, performance, security and support for Internet standards.
• Internet Connection Sharing (ICS). ICS is a set of advanced home networking technologies that enable multiple users to share a single connection to the Internet for simultaneous Internet access.
• Enhanced hardware support. Windows 98 Second Edition offers improved native support for technologies such as Universal Serial Bus (USB), IEEE 1394 and ACPI as well as broadband network connections, enabling consumers to connect to and more easily use a wider range of devices.
• Windows 98 Service Pack. Windows 98 Service Pack addresses top issues in existing features, such as year 2000 updates. Windows 98 Service Pack is planned to be available to existing users of Windows 98 for free download from the Microsoft Web site in the coming weeks (connect-time charges may apply).

"Compaq is the leader in the home PC market, and our Presario product line includes today's latest digital technologies, such as fast Internet access and home networking," said Tony Dowzall, director and co-general manager, Consumer Products Division at Compaq Computer Corp. "We are very excited about Microsoft Windows 98 Second Edition because it is specifically designed to provide consumers with an enhanced online and PC-sharing experience."

Pricing and Availability of Windows 98 Second Edition

Windows 98 Second Edition will be available in a retail box as well as preinstalled on personal computers. Estimated retail pricing for Windows 98 Second Edition for users of Windows 95 and Windows 3.1 remains $109 (U.S.), the current estimated retail price of

Windows 98. Parties interested in estimated retail pricing in local currency in other countries should contact their local Microsoft subsidiary.

Current users of the Windows 98 operating system can receive the updated functionality by ordering a CD-ROM called Windows 98 Second Edition Updates, scheduled to be available from the Microsoft Web site in early summer. In addition to receiving the updated code, users of Windows 98 who order Windows 98 Second Edition Updates will receive "Windows 98 and the Internet," a book detailing the new features and benefits of Windows 98 Second Edition and the Internet. The cost of Windows 98 Second Edition Updates is $19.95 plus shipping and handling.

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