MICROSOFT SIGNS COORDINATED PROCUREMENT AGREEMENT

MICROSOFT SIGNS COORDINATED PROCUREMENT AGREEMENT

WITH FEDERAL GOVERNMENT

Sydney, Australia – 9 February 2009 – Microsoft today confirmed that it had agreed on a coordinated procurement arrangement as part of the Federal Government’s Coordinated Procurement Contracting initiatives. Microsoft is the first vendor in the Information and Communication Technology (ICT) industry to reach such an agreement with the Federal Government.

Under the terms of the four-year Volume Sourcing Arrangement (VSA), most Federal Government agencies will have access to Microsoft Desktop Professional software, which includes Microsoft Office and Windows Vista. The agreement also enables most Federal Government agencies to purchase additional products from Microsoft under a pre-agreed pricing arrangement. The Department of Defence is expected to be the first Federal Government agency to take advantage of the new agreement to license Microsoft technologies.

“We are pleased to be able to take a leadership role for the technology industry and to sign a VSA with the Federal Government,” said Microsoft Australia Managing Director, Tracey Fellows. “The agreement demonstrates our commitment to partnership, and we look forward to working with the Government to further optimise its procurement and deployment of ICT resources.”

A central coordinated procurement arrangement is consistent with the approach suggested by Microsoft to the Gershon Review in 2008. Microsoft had noted that there were a range of opportunities for the Government to realise efficiencies and cost savings by leveraging existing investments, standardising desktops and optimising the Government’s existing ICT infrastructure.   

“This VSA creates significant opportunities and is an agreement that will benefit all organisations involved,” said Pip Marlow, Public Sector Director, Microsoft Australia. “We welcome the Government taking this first step towards building a more coordinated, efficient, and secure ICT infrastructure and look forward to delivering the benefits of our partnership over the coming years.”

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.

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For more information, please contact:

Microsoft Australia

Ben Tan

(02) 9870 2508, btan@microsoft.com

Howorth for Microsoft Australia

Kathryn Torpy

(02) 8281 3237, kathrynt@howorth.com.au