REDMOND, Wash. — June 13, 2006 — Microsoft Corp.’s Smart Personal Objects Technology (SPOT) initiative today launched the next generation of Smart Watches for MSN^® Direct: the ABACUS Smart Watch 2006. These newest watches feature double the storage capacity of previous watches, improved download speed, a thinner bezel and several stylish bands.

“This new generation of Smart Watches gives wearers greater choice, convenience and value,” said Eric Lang, general manager of the SPOT initiative at Microsoft. “With the ABACUS Smart Watch 2006, we not only refined the aesthetics, but also significantly enhanced the technology within the watch and are pleased with this latest extension of the SPOT vision.”

ABACUS Offers More Styles, Choices

From Fossil Inc., one of the original providers of Smart Watches, the new ABACUS Smart Watch 2006 is the next evolution of the Smart Watch category. It features a metal bezel and a choice of watch bands: black leather, brown crocodile leather, green fabric, classic metal or modern metal. In addition to the new styles, with the increased storage capacity and download speed, wearers of the ABACUS Smart Watch 2006 can download even more MSN Direct channels, providing them with additional value and a wide range of choices.

The new ABACUS Smart Watch 2006 is now available online at Brookstone.com, Amazon.com and MSNDirect.com for $179 MSRP (all prices are U.S.), which includes a one-year subscription to the MSN Direct Smart Plan (a $39.95 value). The MSN Direct Smart Plan features content such as news, weather, sports scores, stock quotes, movie times, traffic (in beta and where available), daily diversions, horoscopes, lottery results, and downloadable watch faces including special holiday-themed faces. For an additional $20 per year, consumers can receive their MSN Messenger personal messages and Microsoft^® Office Outlook^® calendar sync.

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