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Microsoft To Unveil New Internet Service Software

SEATTLE – Microsoft Corp. annouced Monday it will soon unveil new software
to make its MSN Internet service easier for Net novices, hoping to draw more
business away from Web access giant America Online Inc.

The software, which will be made available in a test version later this
week, will integrate popular features of the Internet such as search, Web
browsing and digital media, Deanna Sanford, lead product manager for MSN
marketing said in an interview.

To make the service easier to use, Microsoft essentially customized its
Internet Explorer Web browser, adding bright, cartoonish icons across the
top for one-click access to common Internet features.

“We’re going to be the easiest and fastest way to get on the Web,” Sanford
said.

The software, temporarily dubbed “Next Generation MSN”, is part of
Microsoft’s strategy to turn its Internet access service into a serious
challenger to industry leader AOL, Sanford said.

“AOL is focused on making it easy to get to AOL. MSN is focused on making
it easy to get to the Web,” Sanford said.

AOL’s flagship service has about 22 million subscribers, compared to about 3
million for MSN.

The new product will be released about one week before top executives at
Microsoft reveal details about the company’s “Next Generation Windows
Services” project that aims to make the Internet an integrated part of the
Windows operating system and other software.

The MSN division is also expected to play a role in Next Generation Windows
Services, although Sanford said, “We haven’t defined exactly how it will
fit in.”

Microsoft has reworked MSN in recent months, adding new features and
offering a free 6-month trial to try to woo customers. It says MSN added
half a million customers in the past four months.

Although the new Internet software is optimized for use with MSN, Sanford
said customers of other Internet accesss services could install and use it.

Microsoft also integrated its Windows Media Player into the software so
users can play MP3 files, CDs and video clips directly from the browser
without having to launch a separate program.

“Music is one of the latest hot things on the Web, so we’re going to
integrate that as part of the experience,” Sanford said. She also said
users could tailor the software to show information and features they
wanted.

www.microsoft.com

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