NEW YORK — Jan. 29, 2013 — Microsoft Corp. today announced worldwide availability of Office 365 Home Premium, a reinvention of the company’s flagship Office product line for consumers. Office 365 Home Premium is a cloud service designed for busy households and people juggling ever-increasing work and family responsibilities. The new offering includes the latest and most complete set of Office applications; works across up to five devices, including Windows tablets, PCs and Macs; and comes with extra SkyDrive storage and Skype calling — all for US$99.99 for an annual subscription, the equivalent of US$8.34 per month.

“Today’s launch of Office 365 Home Premium marks the next big step in Microsoft’s transformation to a devices and services business,” said Steve Ballmer, CEO of Microsoft. “This is so much more than just another release of Office. This is Office reinvented as a consumer cloud service with all the full-featured Office applications people know and love, together with impressive new cloud and social benefits.”

Microsoft also announced it will now deliver many new features and services to the cloud first, transforming the company’s traditional three-year release cycle. Now, new features and services stream to subscribers as soon as they are ready, keeping subscribers always up to date while eliminating the hassles of upgrading.

“This is a major leap forward,” said Kurt DelBene, president of the Microsoft Office Division. “People’s needs change rapidly, and Office 365 Home Premium will change with them.”

Simultaneously, Microsoft today released Office 365 University for college or university students, faculty and staff at a price of just US$79.99 for a four-year subscription — the equivalent of US$1.67 per month. Globally, the company also released updated versions of the traditional Office suite: Office Home and Student 2013, Office Home and Business 2013 and Office Professional 2013. Office 365 for businesses will be released globally with new capabilities on Feb. 27.

Time to Do the Things You Want

In a recent global survey,* nearly 60 percent of people said they don’t have the time to do the things they want to do, and more than 80 percent said they could save one or more hours a day if they were better organized. Office 365 Home Premium is designed to help people be more productive from virtually anywhere and find the flexibility to do the things they want.

“Between kids and career, I’m never completely at home or completely at work — and thanks to technology, that suits me just fine,” said Jen Singer, an author, blogger and mom of two teen boys. “With Office 365 Home Premium, I can work around my kids’ schedules, so I can drive the soccer carpool, coordinate errands while at a doctor’s office and still hit my deadlines at work. And, with one subscription for everyone in my family, it’s an absolute steal.”

To help people find more time to do the things they want, Microsoft is introducing Time to 365 (http://www.office.com/timeto365), a new crowd-sourced website where people can find and share tips, tricks, ideas and inspiration from around the world. Contributors include experts such as “techorating” pro Janna Robinson (http://www.jannarobinson.com) and everyday working parents who have found ways to simplify their lives. Tips on the site include, for example, an idea for organizing your grocery list with OneNote on your phone, a pointer on how to pick the right-sized TV for your living room, and ways to use Office applications to help plan a child’s birthday party.

About Office 365 Home Premium

Office 365 Home Premium is available in 162 markets in 21 languages and includes the following:

• The latest and most complete set of Office applications: Word, Excel, PowerPoint, OneNote, Outlook, Publisher and Access

• One license for the entire household to use Office on up to five devices, including Windows tablets, PCs or Macs, and Office on Demand available from any Internet-connected PC**

• An additional 20 GB of SkyDrive cloud storage, nearly three times the amount available with a free SkyDrive account

• 60 free Skype world calling minutes per month to call mobile phones, landlines or PCs around the world***

• Future upgrades, so you always use the latest time-saving technology

People can learn more about Office 365 Home Premium or try it free for 30 days at http://www.office.com.

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

* Microsoft surveyed more than 10,000 people in over 20 countries.

** App availability varies by operating system, device and language.

*** Skype world minutes not available in all countries. Calls to select countries.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers and titles were correct at time of publication, but may have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/news/contactpr.mspx.

REDMOND, Wash. — Jan. 24, 2013 — Microsoft Corp. today announced quarterly revenue of $21.46 billion for the quarter ended December 31, 2012. Operating income, net income, and diluted earnings per share for the quarter were $7.77 billion, $6.38 billion, and $0.76 per share.

These financial results reflect the net deferral of revenue for the Windows Upgrade Offer, Office Upgrade Offer and Pre-sales, and the Entertainment and Devices Division Video Game Deferral, partially offset by the recognition of previously deferred revenue for Windows 8 Pre-sales. The following table reconciles these financial results reported in accordance with generally accepted accounting principles (GAAP) to non-GAAP financial results. We have provided this non-GAAP financial information to aid investors in better understanding the company’s performance.

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“Our big, bold ambition to reimagine Windows as well as launch Surface and Windows Phone 8 has sparked growing enthusiasm with our customers and unprecedented opportunity and creativity with our partners and developers,” said Steve Ballmer, chief executive officer at Microsoft. “With new Windows devices, including Surface Pro, and the new Office on the horizon, we’ll continue to drive excitement for the Windows ecosystem and deliver our software through devices and services people love and businesses need.”

The Windows Division posted revenue of $5.88 billion, a 24% increase from the prior year period. Adjusting for the net deferral of revenue for the Windows Upgrade Offer and the recognition of the previously deferred revenue from Windows 8 Pre-sales, Windows Division non-GAAP revenue increased 11% for the second quarter. Microsoft has sold over 60 million Windows 8 licenses to date.

"We saw strong growth in our enterprise business driven by multi-year commitments to the Microsoft platform, which positions us well for long-term growth,” said Peter Klein, chief financial officer at Microsoft. “Multi-year licensing revenue grew double-digits across Windows, Server & Tools, and the Microsoft Business Division.”

The Server & Tools business reported $5.19 billion of revenue, a 9% increase from the prior year period, driven by double-digit percentage revenue growth in SQL Server and System Center.

“We see strong momentum in our enterprise business. With the launch of SQL Server 2012 and Windows Server 2012, we continue to see healthy growth in our data platform and infrastructure businesses and win share from our competitors,” said Kevin Turner, chief operating officer at Microsoft. “With the coming launch of the new Office, we will provide a cloud-enabled suite of products that will deliver unparalleled productivity and flexibility.”

The Microsoft Business Division posted $5.69 billion of revenue, a 10% decrease from the prior year period. Adjusting for the impact of the Office Upgrade Offer and Pre-sales, Microsoft Business Division non-GAAP revenue increased 3% for the second quarter. Revenue from Microsoft’s productivity server offerings – collectively including Lync, SharePoint, and Exchange – continued double-digit percentage growth.

The Online Services Division reported revenue of $869 million, an 11% increase from the prior year period. Online advertising revenue grew 15% driven by an increase in revenue per search.

The Entertainment and Devices Division posted revenue of $3.77 billion, a decrease of 11% from the prior year period. Adjusting for the Video Game Deferral, the division’s non-GAAP revenue decreased 2% for the second quarter. Xbox continues to be the top-selling console in the United States. During the quarter, Microsoft launched Windows Phone 8 with a broad array of carriers and devices.

Business Outlook

Microsoft reaffirms fiscal year 2013 operating expense guidance of $30.3 billion to $30.9 billion.

Webcast Details

Peter Klein, chief financial officer, Frank Brod, chief accounting officer, and Chris Suh, general manager of Investor Relations, will host a conference call and webcast at 2:30 p.m. PST (5:30 p.m. EST) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/investor/. The webcast will be available for replay through the close of business on Jan. 24, 2014.

Adjusted Financial Results and Non-GAAP Measures

For second quarter fiscal year 2013 GAAP revenue, operating income, and earnings per share growth included the net deferral of revenue for the Windows Upgrade Offer, the Office Upgrade Offer and Pre-sales, and the Entertainment and Devices Division Video Game Deferral, and the recognition of previously deferred revenue for Windows 8 Pre-sales. These items are defined in our Form 10-Q for the quarterly period ended December 31, 2012. In addition to these financial results reported in accordance with generally accepted accounting principles (GAAP), we have provided certain non-GAAP financial information to aid investors in better understanding the company’s performance. Presenting these measures without the impact of these items gives additional insight into operational performance and helps clarify trends affecting the company’s business. For comparability of reporting, management considers this information in conjunction with GAAP amounts in evaluating business performance. These non-GAAP financial measures should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Non-GAAP Reconciliations

Windows Division

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Microsoft Business Division

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Entertainment and Devices Division

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About Microsoft

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

Forward-Looking Statements

Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

• intense competition in all of Microsoft’s markets;

• execution and competitive risks from our increasing focus on devices and services;

• significant business investments that may not gain customer acceptance and produce offsetting increases in revenue;

• Microsoft’s continued ability to protect its intellectual property rights;

• claims that Microsoft has infringed the intellectual property rights of others;

• the possibility of unauthorized disclosure of significant portions of Microsoft’s source code;

• cyber-attacks and security vulnerabilities in Microsoft products that could reduce revenue or lead to liability;

• improper disclosure of personal data that could result in liability and harm to Microsoft’s reputation;

• outages and disruptions of services provided to customers directly or through third parties if Microsoft fails to maintain an adequate operations infrastructure;

• government litigation and regulation affecting how Microsoft designs and markets its products;

• Microsoft’s ability to attract and retain talented employees;

• delays in product development and related product release schedules;

• unfavorable changes in general economic conditions, disruption of our partner networks or sales channels, or the availability of credit that affect demand for Microsoft’s products and services or the value of our investment portfolio;

• adverse results in legal disputes;

• unanticipated tax liabilities;

• quality or supply problems in Microsoft’s consumer hardware or other vertically integrated hardware and software products;

• impairment of goodwill or amortizable intangible assets causing a charge to earnings;

• exposure to increased economic and regulatory uncertainties from operating a global business;

• geopolitical conditions, natural disaster, cyber-attack or other catastrophic events disrupting Microsoft’s business; and

• acquisitions, joint ventures, and strategic alliances that adversely affect the business.

For further information regarding risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/investor/.

All information in this release is as of Jan. 24, 2013. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

For more information, financial analysts and investors only:

Chris Suh, general manager, Investor Relations, (425) 706-4400

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news/. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. PST conference call with investors and analysts, is available at http://www.microsoft.com/investor/.