MCI AND Microsoft Announce New Strategic Alliance; Alliance to jointly develop and market a variety of Internet and network services

Business Wire, Jan 29, 1996

WASHINGTON and REDMOND, Wa.--(BUSINESS WIRE)--Jan. 29, 1996--MCI Communications, Inc. and Microsoft Corporation chief executives, Bert Roberts and Bill Gates, today announced a broad alliance to jointly market and develop a range of services in the online, Internet and networking markets. The alliance enables the companies to combine their core strengths to deliver a new level of integrated computer and communications services to consumers and businesses.

As the first phase of the initiative, Microsoft has selected MCI to distribute MSN, the Microsoft Network, an Internet-online service, and MCI will market it as a customized version of MSN. MCI will adopt the Microsoft Internet Explorer as its preferred browser software and package it as an integral part of its Internet offering along with other Microsoft products including, Internet Information Server and Microsoft Exchange Server. Microsoft will market to its millions of users of Microsoft Windows operating system a range of MCI services, initially including MCI Conferencing and MCI ISDN, as well as vertical market service offerings. Microsoft has also selected MCI as its key telecommunications provider at its Professional Developer Conferences and other US-based software developer events.

"With this new strategic alliance, both companies will work closely together to deliver and market integrated computer and communication services to the homes and workplaces of our customers," said Bert Roberts, MCI chairman and CEO. "We believe that Microsoft's Internet strategy and its commitment to create platforms based on open standards are the perfect complement to MCI's global communications solutions."

"MCI is a clear leader and innovator in the telecommunications arena. This alliance with MCI is an important component in broadening our scope to delight customers with expanded Internet solutions and networking services," said Bill Gates, chairman and CEO of Microsoft. "We are pleased that MCI has chosen Microsoft's Internet products to enhance its Internet offerings."

MCI will market a customized version of MSN called "MSN from MCI." This Internet online service will provide Internet access via MCI's Internet network, the largest and fastest Internet backbone in the world, Microsoft Network content and communities, information on the World Wide Web, as well as MCI customized content, and other services. MCI will offer "MSN from MCI" to its customers and prospects through its mass market sales channels, including telemarketing, direct mail and advertising. Customers will be able to subscribe to the MSN service through either Microsoft or MCI. Last fall, Microsoft selected MCI to provide all customer service to its MSN customers in the U.S.

Other Alliance Initiatives

Web Hosting Services: MCI announced today that it will provide web-site hosting services to help its customers connect to the World Wide Web, host and create content. MCI will also assist customers in establishing and operating their own intranet web sites for enhanced company-wide information exchange. MCI will deploy Microsoft Internet Information Servers and Microsoft Exchange Servers on its internetMCI service.

Network Solutions: MCI will also market turn-key services for distributed applications allowing small businesses and satellite offices to leverage the power of Microsoft Exchange Servers, which includes a universal electronic mail client supporting Internet mail, faxing and other messaging applications. MCI and Microsoft said these enhanced capabilities position the companies at the forefront of integrated messaging and groupware applications.

In addition, MCI, through its newly acquired SHL Systemshouse subsidiary, will jointly offer MCI's network services, Microsoft's applications and systems software, and provide consulting and support expertise. This represents another key step in MCI and Microsoft's strategies to offer end-to-end network solutions to their customers.

Vertical Market Services: MCI and Microsoft will jointly develop customized products and services targeted at vertical markets. Initially, the companies will focus on the education market where MCI will enhance its campusMCI programs with desktop applications and Internet products, provided by Microsoft. CampusMCI is currently utilized by over 400 colleges and universities.

Conferencing Services: The two companies will develop and market audio, video and document conferencing services using MCI's conferencing capabilities. Customers will be able to order MCI's Conferencing services on MSN.

ISDN: Microsoft and MCI will offer ISDN services enabling customers to obtain high-speed connections over dial-up phone lines. Customers will be able to order MCI's ISDN service online.

MCI, headquartered in Washington, D.C., is one of the world's largest and fastest growing diversified communications companies. With annual revenue of more than $15 billion, MCI offers consumers and businesses a broad portfolio of services including long distance, wireless, local access, paging, Internet software and access, information services, outsourcing, business software, advanced global telecommunications services, and music distribution and merchandising.