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Addition to Microsoft Desktop Optimization Pack will provide IT professionals with capability for managing Virtual PCs across the enterprise.

REDMOND, Wash. - March 12, 2008 - Microsoft Corp. today announced its intended acquisition of Kidaro, a leading provider of desktop virtualization solutions for enterprises. In combining Kidaro's virtualization technology with its suite of desktop management tools, known as the Microsoft Desktop Optimization Pack for Software Assurance, Microsoft will enable IT professionals to optimize their desktop infrastructure by providing management capabilities for Virtual PCs, streamlining deployments and easing application compatibility issues.

"The acquisition of Kidaro is an important component of our virtualization strategy, and it delivers a powerful new tool to help enterprise customers optimize their desktops," said Shanen Boettcher, general manager of Windows product management at Microsoft. "Virtual PCs can help businesses address a number of challenges around application compatibility, mobility and business continuity. Kidaro's seamless user interface and management capabilities allow enterprises to more easily use and manage Virtual PCs. Incorporating Kidaro's innovative solutions into the Microsoft Desktop Optimization Pack further enables virtualization across the enterprise, and is another example of how we are helping customers keep up with the changing needs of their business."

Turning Virtualization Into Tangible Benefits

Managing desktops across an enterprise can be time-consuming, complex and costly. Adding Kidaro's desktop virtualization capabilities to the Microsoft Desktop Optimization Pack suite will provide Microsoft Software Assurance customers who have purchased the add-on subscription with the enhanced ability to do the following:

* Accelerate Windows Vista migrations by minimizing compatibility issues between applications and the operating system

* Easily deploy managed Virtual PCs to Windows desktops

* Drive business continuity by enabling rapid reconstitution of corporate desktops

* Minimize the tension between IT control and user flexibility by applying policies in locked-down corporate Virtual PCs while giving users more open access to the underlying host operating system

* Speed user adoption of desktop virtualization by making Virtual PCs "invisible" to end users

* Reduce IT investment in desktop image management by delivering virtual images independent of hardware or local desktop configuration

"Virtualization technology has tremendous potential to help companies reduce costs and increase control over their desktops, while simultaneously delivering benefits to end users," said Kevin Brown, chief executive officer of Kidaro. "By adding Kidaro's technology to Microsoft Desktop Optimization Pack, Microsoft can deliver sophisticated virtual desktop capabilities and management to a wide variety of enterprise customers."

Kidaro technologies will be incorporated into future updates of the Microsoft Desktop Optimization Pack for Software Assurance, which currently includes five key technologies that help enterprises manage their desktops:

* Microsoft Application Virtualization

* Microsoft Asset Inventory Service

* Microsoft Advanced Group Policy Management

* Microsoft Diagnostics and Recovery Toolset

* Microsoft System Center Desktop Error Monitoring

More information about the acquisition of Kidaro and its role in Microsoft's virtualization strategy is available in the Windows Virtualization team blog at http://blogs.technet.com/virtualization/. More information about the Microsoft Desktop Optimization Pack is available at http://www.windowsvista.com/optimizeddesktop, and details about Microsoft's virtualization solutions are at http://www.microsoft.com/virtualization.

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

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