Specialized SKUs

a) Emerging Markets

• The emerging markets will see two additional SKUs added to Home Premium and Professional.

• For the next billion customers getting their first PCs and who have more basic needs, Microsoft will be offering the Windows 7 Starter edition SKU.

• For customers looking for an entry-point Windows experience on a full value PC without limitations on application founds in the Starter edition, Microsoft will offer Windows 7 Home Basic.

b) Netbook Market

• Microsoft will offer the Windows 7 Starter edition which is hardware-constrained for netbook users.

• This edition will offer the most basic experience - no media, no UI enhancement, only 3 applications running simultaneously.

• However, Microsoft will make ALL versions of Windows 7 available on netbooks.

• For example - Windows 7 Home Premium will be available to, and the right choice for, consumers interested in more advanced features and expanded user scenarios on small form factor devices.  For consumers interested in more limited usage scenarios on lower cost notebook devices, Windows 7 Starter will be available in developed markets (as well as emerging markets), with the same limitation on applications as in Windows Vista Starter edition.

• The end of life date for existing XP/Vista product offerings for Netbook/Nettop devices will be one year after Windows 7 General Availability (GA). After this date,
  
    a) Windows Vista/XP Netbook products will be replaced with the Windows 7 Starter For Small Notebook PC product. Additionally, existing Nettop and Limited Function Devices available in Emerging Markets will be replaced with Windows 7 Starter.
  
    b) In Developed Markets, there will not be specific Windows 7 product offerings for Nettops or Limited Function Devices. Therefore Windows 7 Home Premium or Professional will be the available products for such devices.

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