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Microsoft, Cisco Enhance Offices

REDMOND, Wash. and SAN JOSE, Calif. -- Microsoft Corp. and Cisco(R) (NASDAQ: CSCO) today announced that they
intend to work together to offer Windows Server 2008 with Cisco WAN
optimization in a solution for branch office environments. Cisco
will embed a virtualization component within its Wide Area
Application Services (WAAS) appliance family that will help customers
to host Windows Server 2008 services within their existing network
infrastructure for branch offices.

The two companies intend for Cisco to offer Windows Server 2008
preinstalled on its new virtualized Cisco WAAS appliances that are
scheduled to be available later this year. To optimize the value of
this solution for customers, the two companies plan to test and
validate the resulting architectures for the remote information
technology (IT) infrastructure in the branch office and to offer
customers joint support. In addition, Cisco and Microsoft plan to
work together to promote awareness of the integrated solution among
channel resellers and customers by offering business frameworks and
marketing programs.

"Extending our collaboration with Cisco to integrated solutions for
branch offices presents an exciting opportunity for our customers and
for Microsoft and Cisco," said Bob Muglia, senior vice president,
Microsoft Server and Tools Business division. "The technologies
announced today will help boost performance and availability by
making critical Windows Server 2008 services available to remote
offices through integration with Cisco's WAAS solution."

Microsoft Corp. (Nasdaq: MSFT)

Cisco Systems Inc.