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"I'm thrilled to announce the availability of the Windows 7 beta, which ison track to deliver simplicity and reliability," Ballmer said. "Windows 7 andWindows Live are part of an incredible pipeline of consumer technology that ismaking it easier than ever for people to communicate, share and get moredone."

The beta version of Windows 7, Microsoft's next-generation PC operatingsystem, can be downloaded today by MSDN, TechBeta and TechNet customers.Consumers who want to test-drive the beta will be able to download itbeginning Jan. 9 at http://www.microsoft.com/windows7.

Microsoft also announced the global availability of Windows Live, a freesuite of communications and sharing applications. Windows Live makes it easyfor people to communicate, share and keep their online lives in sync and inone place with one login. The new and enhanced Windows Live services --including PCMag.com 2008 Editors' Choice winner Windows Live Messenger --along with Windows Live Mail and Windows Live Photo Gallery are designed towork seamlessly with more than 50 popular Internet services. Ballmer alsoannounced new alliances with the following companies:

* Dell Inc. In February, to offer a comprehensive experience for consumers to connect, share and personalize their content, Dell will offer preloaded Windows Live Essentials (a free suite of applications for instant messaging, e-mail and photos that complement Windows Live on the Web) and Live Search on a majority of its new consumer and small-business PCs globally. * Facebook. In the coming months, Facebook users can choose to share content they post on Facebook, including photos, directly into Windows Live. * Verizon Wireless. Under a new five-year relationship that covers mobile search and advertising, Verizon subscribers in the U.S. will be able to use Live Search to search for local business and shopping information; access maps and directions; perform general Internet searches; and find ring tones, games, wallpaper and other online mobile products and services. Together with Internet Explorer 8, currently in beta and releasing soon,Windows Live helps make the things people do most on the Web (searching,sharing and communicating) faster and less complex with fewer clicks, loginsand customizations. Windows Live is now available for download athttp://www.windowslive.com/explore, or automatically via Microsoft Update forcurrent customers.

Windows 7 Consumer Features Showcased

Microsoft demonstrated new features and key improvement in Windows 7 basedon listening to the needs of customers. Windows 7 is designed to do thefollowing:

* Work the way consumers want. With Windows 7, Microsoft paid special attention to performance, reliability, security, compatibility and battery life. The company is on track to deliver a great experience that will allow customers to spend more time doing the things they want to do, without the operating system getting in the way. * Make everyday tasks faster and easier. The more streamlined and intuitive design of Windows 7 is intended to simplify the things people do every day on their PCs. Desktop improvements make using the PC easier and provide immediate access to the applications and files people use most often through features such as Jumplists, Previews and the new Taskbar. The new Home Group feature makes it easier for consumers to connect multiple home PCs together to share printers and access files, music, photos and videos. Device Stage makes connecting and working with devices easier than ever with a single interface to manage devices and run common tasks. New multitouch technology in Windows 7 will enable people with touch- screen monitors to use multiple fingers to interact with their PC screens in a more intuitive way. * Offer a better entertainment experience. Consumers today have access to more digital media and are increasingly using the PC as the hub of their electronic experiences. The "Play-to" feature in Windows 7 allows easier streaming of music, video and photos to devices in a home network. Windows Media Player and Windows Media Center in Windows 7 have built-in support for more media formats so people can use their PC to play more media content and sync it to a broader range of devices. As an alternative to monthly digital video recording (DVR) fees, Windows Media Center, available in some editions of Windows 7, with a TV tuner and improved user interface, makes recording TV free and easy. Entertainment That Extends Across Devices; New Xbox Experiences Previewed

Microsoft's president of the Entertainment & Devices Division, RobbieBach, shared the stage at CES with Ballmer. Bach addressed Microsoft's uniqueability to deliver entertainment on virtually any screen that consumerscommonly use today, including the PC, TV and mobile phone.

Despite a tough holiday and economy, Xbox 360 registered its biggest yearever, driven by record sales at retail with 28 million consoles sold to date,an 84 percent jump in online consumer spending, and Xbox LIVE membership thathas grown to 17 million active members.

"Not only is Xbox 360 one of the world's leading next-generation gamingconsoles, but with partners like Netflix, it is one of the world's leadingentertainment devices, period," Bach said. "With 28 million consoles soldworldwide, an active online community of 17 million members, and more than $1billion spent on Xbox LIVE since the launch of the Xbox 360, it's clear thatconsumer demand for these great entertainment experiences has never beenhigher. We're only beginning to scratch the surface of what's possible withXbox."

Bach shared how consumer demand for connected TV experiences is growingand announced the Mediaroom platform has reached nearly 2.5 million subscriberhomes worldwide, an increase of more than 1.5 million new connections in thepast year alone. The award-winning Microsoft Mediaroom is driving the futureof television by enabling broadband service providers to deliver new connectedTV and entertainment experiences to consumers around the world. Bach alsounveiled a groundbreaking feature called Mediaroom Anytime that letssubscribers access previously aired shows directly from the InteractiveProgram Guide without any pre-planning or prior DVR recording.

Bach discussed how Microsoft is making it easier than ever for people tosynch their entertainment content across the screens in their lives. Thismonth, Microsoft and Netflix, the world's largest online movie rental service,will offer software that enables Windows Mobile customers to update and viewtheir Netflix movie queue. Changes will appear instantly on Netflix on XboxLIVE, extending the existing service that launched in November. Xbox 360 isthe only game system that lets people instantly watch thousands of movies andTV episodes streamed from Netflix, many in HD.

Bach also spoke about how Xbox 360 and Xbox LIVE are transforming the waypeople enjoy interactive entertainment at home. This spring, Microsoft willintroduce a new interactive entertainment genre with the premiere of the XboxLIVE Primetime channel, which brings together the best of TV and gaming. XboxLIVE Primetime will debut with an online version of the popular TV show "1 vs.100" that enables thousands of gamers to play together with real hosts andcompete for real prizes.

In addition, Bach talked about the outpouring of creativity from the Xboxcommunity since the announcement of Community Games in November, with over 100new games available for anyone to play. He highlighted an upcoming Xbox LIVECommunity Game called "Kodu," launching in the spring, designed to help anyonefrom age 7 to 70 create their own video games.

Additional information about Microsoft at CES 2009 is available on theMicrosoft CES Web page at http://www.microsoft.com/.

Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader insoftware, services and solutions that help people and businesses realize theirfull potential.

SOURCE Microsoft Corp.