Feb. 10

Microsoft Corp. announced that Sony Ericsson will
deliver a new Windows Mobile phone, the XPERIA(TM) X1, which blends mobile
Web communication and multimedia entertainment, to meet consumer demand for a premium mobile experience for work and play.

"People should be able to have phones that deliver what they need
throughout the day and stay connected with today's broad array of on-demand
information and entertainment no matter where they are," said Pieter Knook,
senior vice president, Mobile Communications Business, Microsoft. "Our
shared vision with Sony Ericsson is to make the concept of 'One Phone for
Your Life' a reality and finally give consumers the freedom of true
mobility."

The XPERIA X1 from Sony Ericsson lets users choose from a dynamic range
of activities for work and play backed by the familiarity of Microsoft
Windows and extensive availability of Windows Mobile applications and
services. To be introduced in the second half of 2008, XPERIA X1 is the
first phone to realize the vision of XPERIA, a new Sony Ericsson sub-brand
that reflects a premium experience of energized communication.

"XPERIA is our promise to think foremost about user experience and to
deliver on our goal of providing a true premium experience - anytime,
anywhere, anything, with anyone," said Rikko Sakaguchi, head of Portfolio
and Proposition at Sony Ericsson. "By working with Microsoft on the XPERIA
X1, we have been able to couple our excellence in creating compelling
consumer propositions with the productivity capabilities of Windows Mobile
to deliver a seamless blend of mobile Web communication and multimedia
entertainment within a distinctive design."

Sony Ericsson is the latest leading device manufacturer to design and
market mobile phones based on the Windows Mobile platform. The company sold more than 100 million handsets in 2007 and excelled in sales of imaging and music-enabled devices, such as Cyber-shot and Walkman phones. In fiscal
year 2007, Microsoft sold 11 million Windows Mobile licenses and expects to
sell more than 20 million licenses in fiscal year 2008, making Windows
Mobile a leading smartphone platform globally. With the addition of the
XPERIA X1 from Sony Ericsson, four of the world's top five makers of mobile
phones will ship Windows Mobile devices in 2008.

"The agreement between Microsoft and Sony Ericsson is undoubtedly a
win- win for both companies," said Lars Vestergaard, research director,
European Wireless and Mobile Communications at IDC. "Marrying the power and ease of use of the Windows Mobile platform with the advanced consumer
features Sony Ericsson is known for has the potential to reach the 'sweet
spot' for mobile phones."