For Immediate Release Nov. 14, 1995

LAS VEGAS - Nov. 14, 1995 - The personal computer industry is on the verge of a new revolution that will bring dramatic changes to the way people work by making software much more personalized and by providing easier access to online sources, according to Bill Gates, chairman and CEO of Microsoft Corp. Gates shared his vision of the evolution of desktop application software - with which today's users spend most of their computing time - with a capacity audience attending the computer industry's largest annual gathering.

"New technologies will help move applications to the next level: software that's not only easy to learn but that actually adapts to the way people work, rather than making people learn to work as computers do," Gates told attendees during his keynote address at COMDEX/Fall 95 in Las Vegas. "In the office of the future, personal computers will be more flexible, accessible and responsive than ever before. And, they'll let you work with people and information located anywhere, all from the comfortable familiarity of your computer desktop."

"Microsoft, together with allies in the computer industry, will do everything possible over the next few years to bring these changes about by taking advantage of new technologies, including the Internet, voice recognition and natural-language processing," he added. "We'll do this to help realize the greatest promise of the personalized, connected office: to make computing more relevant to the challenges of living, working and being productive in an increasingly complex world."

"Over the past two decades, we've moved from issuing nonintuitive commands to using productivity suites that can provide answers to natural-language questions," Gates said. "We'll see as much change in applications over the next five years as we saw in the last 20."

Gates said that four key trends will drive this future of applications that adjust to the way users work: adaptable software, the connected office, project-oriented workspaces, and solutions for everyone. During his address, Gates offered these glimpses into the future:

• Adaptable software will learn from users rather than requiring them to learn from it. Applications will analyze and adapt to users' work styles, anticipate commands and automate routine tasks. Users will be able to delegate repetitive or tedious jobs to software "assistants" that will learn by example and then work on command. For example, an "assistant" could watch as the user works and automatically suggest an Internet search based on keywords it recognizes in the document. These advances will decrease the need for training on the software.
  
• Easier connectivity will help users work with information from the Internet or with other people across a global network, without requiring them to leave their work environments or learn new processes. They'll be able to access Internet resources or post documents online using everyday tools such as word processors or spreadsheets. For example, while writing a corporate report, a user can ask the software "assistant" to find relevant information such as a video clip of a new manufacturing process. Or, the user could publish the report online from within Office. In addition, users can simultaneously edit a document with distant colleagues (e.g., work on a tax worksheet with an accountant in another city) without leaving their computer desktop.
  
• Project-oriented workspaces allow people to arrange their computer workspace around their tasks, rather than having to conform to structure determined by software. The basic document type will be a highly adaptable multipurpose container called a binder, which can house a rich mix of text, graphs, maps, photos, animations, movies, sound clips - anything required to help users tell a story or make a point. In addition, software will evolve from large feature sets into smaller, highly integrated and cooperative components that only present themselves when needed, rather than requiring the user to determine which tool is appropriate to accomplish a task. For example, the user might start from a blank page, and, as data is added, a charting tool might become available, rather than requiring the user to open a full spreadsheet. Time will become an additional component of the desktop, meaning applications will hold and understand information about when projects are due and how they fit into an overall schedule, to help people complete tasks more efficiently.
  
• Solutions for everyone result from the unprecedented modularity, adaptability and programmability of new software. The personalized, connected office will contain a broader range of smaller, customized solutions built from parts of everyday applications, which will be more effective for specific work. For example, a CPA might use a cash-flow analysis tool based on a piece of a spreadsheet, rather than conforming to the structure dictated by a full spreadsheet. As custom solutions become easier to build, they'll become more prevalent, so more computer users can experience the satisfaction and increased productivity that come from using personalized, adaptable software. They'll even be able to customize these applications for themselves.

"People don't think in terms of applications software; they think in terms of getting things done," said Clifford Nass, professor at the Center for the Study of Language and Information at Stanford University and a respected industry scholar. "When computers conform to people's expectations, they'll be more natural and automatic. Every user will become an 'expert user' because all of us are experts at our own work. Our research shows that people expect computers to respond socially; the next generation of software will, of necessity, adapt to users in a social context."

Computer users worldwide were able to read Gates' address on the Internet while he delivered it to the COMDEX/Fall audience in Las Vegas. Microsoft published the speech on its Microsoft® Office World Wide Web home page (http://www.microsoft.com/msoffice). The published speech and a videotape version can be obtained by calling Microsoft at (800) 426-9400.

Founded in 1975, Microsoft (NASDAQ "MSFT") is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.

Microsoft is either a registered trademark or trademark of Microsoft Corp. in the United States and/or other countries.

For More Information, Press Only:

Kim Bouic, Waggener Edstrom, (206) 637-9097, kimb@wagged.com

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