Microsoft Agrees to Acquire Danger Inc., Strengthens Mobile Consumer Vision

Acquisition of popular software and mobile services company will enhance

Microsoft's ability to broadly deliver compelling mobile experiences.

Feb 11, 2008, 00:00 ET from Microsoft Corp.

    REDMOND, Wash., Feb. 11 /PRNewswire-FirstCall/ -- Microsoft Corp. today
 announced it has entered into an agreement to acquire Danger Inc., the
 company responsible for the software and services powering many popular
 consumer handsets. The acquisition will align Danger's nearly 10 years of
 expertise in the mobile consumer space with Microsoft's vision to provide
 innovative and compelling mobile experiences to a growing base of
     "Microsoft is a global leader with our Windows Mobile software and
 expanding mobile services," said Robbie Bach, president of the
 Entertainment and Devices Division at Microsoft. "The addition of Danger
 serves as a perfect complement to our existing software and services, and
 also strengthens our dedication to improving mobile experiences centered
 around individuals and what they like."
     The Palo Alto, Calif.-based company provides services that allow people
 to keep in touch, stay organized and keep informed while on the go through
 real-time mobile messaging, social networking services and other
 applications -- all blended together on a single phone that is intuitive
 and customizable.
     "Danger continues to provide an effortless and fun mobile experience
 for consumers," said Henry R. Nothhaft, chairman and CEO of Danger Inc.
 "Now by combining our uncompromised application software and powerful
 back-end service with Microsoft, we can expand our innovative service
 offerings even further and take mobility to a new level."
     A Grasp on Consumers
     Danger has connected with a customer base that is young and
 enthusiastic, Internet-savvy and socially inclined. The Danger team has a
 deep understanding of consumers and a hold on what people want from
 mobility, making it an ideal group to work with in delivering connected
 experiences. Adding Danger to the Entertainment and Devices Division will
 provide Microsoft with additional assets and resources that will accelerate
 the company's entry into the consumer space and complement the company's
 focus on delivering innovative technologies and services that connect
 people's entertainment and information.
     Danger will further expand people's mobile options by bringing a
 variety of established partnerships to the mix. Microsoft software can be
 found on more than 160 mobile phones made by more than 50 hardware
 partners, which are offered through more than 160 mobile operators around
 the world.
     Defining the Mobile Experience
     Through focused efforts Danger has successfully delivered a software
 and services platform to the mobile mass market. Applications on
 Danger-powered handsets include HTML Web browsing, instant messaging,
 games, multimedia, social networking, Web e-mail and personal information
 management applications.
     Combining these services with Microsoft's connected entertainment and
 experiences technologies, including MSN, Xbox, Zune, Windows Live and
 Windows Mobile, will provide Microsoft with the tools to accelerate its
 work to create industry-leading entertainment and communication experiences
 for consumers.
     About Danger
     Danger is a Palo-Alto, California-based software-as-a-service company
 that provides mobile operators with an integrated end-to-end solution to
 deliver mobile data and Internet services to their subscribers.
     About Microsoft
     Founded in 1975, Microsoft (Nasdaq:   MSFT) is the worldwide leader in
 software, services and solutions that help people and businesses realize
 their full potential.

SOURCE Microsoft Corp.