Meet Tracey FellowsIt’s a great privilege for me to introduce myself and talk about some of the priorities Microsoft shares with government – priorities that are demonstrated not only in our products, but also in our ethical framework and in our involvement with industry and the wider community that we all serve.

In this newsletter you’ll find lots of information about what we call the ‘IT ecosystem’ – a way of describing the less tangible benefits of our involvement in the economy and community life – and you’ll get a better feel for how innovation in technology can prompt major waves of prosperity for the whole nation as well as assist the underserved in our community.

I am pleased to be able to update you on how Microsoft Australia is working to make technology more accessible and build digital inclusion through our Unlimited Potential Community Technology Learning Centres, how Windows Vista™ is empowering people with disabilities to use technology to help reach their potential, and how we are working to help bring about a safe and secure computing experience, especially for the most vulnerable members of our community – our children.

I hope that you enjoy reading this newsletter and that your engagement with Microsoft is always a positive one.

Yours sincerely,

Tracey Fellows

More about TraceyTracey Fellows has come a long way since emigrating to Australia from Canada during her high school years. Before her recent appointment as Managing Director for Microsoft Australia, she held senior positions at Microsoft, Dell and IBM, giving her deep experience in the Asia-Pacific IT industry.

Tracey is proud to lead a team of more than 850 people, all with a common goal: to meet the needs of Microsoft customers, including governments, businesses and consumers. And she’s also excited at the prospect of working with the 14,000 partners and independent software vendors producing leading edge technology solutions for Australian businesses based on the Microsoft platform.

What is Windows Vista™?

Windows Vista is Microsoft’s new operating system, the successor to the widely used Windows® XP. Five years and $30 billion in development, it provides essential software and security enhancements to get things done more efficiently, protect data and stay connected. And with the parallel release of the 2007 Microsoft® Office system, governments, businesses and consumers are set to benefit even more, with powerful new capabilities built into the software they use every day.

The launch of Windows Vista has created a remarkable wave of interest from customers and partners Australia-wide. Dozens of independent software vendors, including MYOB, Quicken, Kodak and BigPond, have applied to partner with Microsoft on new product development, spurring growth in the local economy.

Information TechnologyAustralian

TraceyFellowsManaging Director, Microsoft Australia

MAY 2007

• Meet Tracey Fellows 1 • What is Windows Vista?

• Increasing security increases potential 2

• Fighting scams with SCAMwatch 3 • Help constituents and their families stay safe online

• Software for worker productivity 4 • New open standard for interoperable documents

• Local jobs, local economies, local growth 5 • Gadget connects CityLink

• Empowering people with disabilities to use technology 6 • Giving people with a disability a voice • Meals on Wheels rolls out new database

• Partnering to broaden digital inclusion 7

• The Windows principles 8

Windows Vista has a stunning new interface designed to make it easier than ever before to find, use, manage and share information.

More secure computingFew revolutions have been so warmly embraced by people across the world as the digital revolution. Indeed, the move to all things digital is accelerating across every aspect of daily life, but as the doorway to progress widens, so too does our need for improved security.

Windows Vista is specifically designed to provide that security. Built from the ground up using the most stringent privacy standards for software development, it incorporates a host of new features that make it easier to protect data and private information, giving businesses peace of mind and helping families reap the benefits of an online world without inadvertently inviting danger into their homes.

Shut the door on malware, viruses, worms, spyware and unwanted softwareWith Windows Vista, users are prompted if dangerous software tries to access and change their computers. Continuous scanning by Windows Defender helps protect computers against spyware and other unwanted software, and the Phishing Filter in the latest Internet Explorer® helps stop malicious emails arriving in people’s inboxes. Even if people mistakenly visit a suspicious Web site, they’ll be warned.

Recognise when a PC is vulnerableThe Windows Security Centre in Windows Vista works full time on security so that people don’t have to. It provides all the guidance and control people need to identify security alerts – and can be individualised to user’s particular needs and computing environment.

Securing sensitive dataNew technologies built into some versions of Windows Vista make it much easier for organisations to make

sure data stays in the right hands. For example, Windows Rights Management Services protects information through embedded usage policies, and BitLocker™ Drive Encryption safeguards data if a computer is lost or stolen.

Providing a safer online experience for childrenThe new Parental Control feature of Windows Vista means parents can feel more confident that their children can surf the net safely, through individualised accounts that control the Web sites, programs and games each family member can access. Parents can use activity reports to guide meaningful conversations with children about computer use.

Protecting privacyTaken together, all these features provide unprecedented protection for private data. Add to that Windows CardSpace™, which gives people control of how they store and use their digital identities. This means they can be more confident their personal information is safe when sharing it on the Web – and that people asking for digital identities are who they say they are.

Increasing security in the wider communityRecognising that the fight for greater security cannot be limited to our technology, Microsoft also works globally with governments, community organisations and industry partners to create a safer online environment for everybody to enjoy.

“ In just one week, Phishing Filter blocked more than a million attempts to entice people to phishing sites.”

PeterWatson Chief Security Adviser,

Microsoft Australia

Security matters

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Increasing security increases potential

As viruses, spyware and phishing scams proliferate online, it’s never been more critical to protect PCs against malicious activity. That said, I believe we’ve made some very important steps down the road to secure and enable trustworthy computing. With the investment, collaboration and firm resolve of industry, government and law enforcement, we’re starting to turn the tide against cybercrims, making it harder for them to attack everyday citizens as they go about their business online. For example, Microsoft’s new Windows Vista™ operating system is our safest yet, as outlined on this page. We’ve also launched a new product called Windows Live OneCare, which handles essential PC care behind the scenes so our customers don’t have to worry about it. And at the same time, government organisations such as SCAMwatch are building community awareness about how to avoid and respond to digital rip-off merchants. All these initiatives contribute to safer, more secure computing, so you and your constituents can surf, blog or simply send an email, confident that your privacy is better protected.

PeterWatsonChief Security Adviser, Microsoft Australia

SCAMwatch Web site

Security matters

Fighting scams with SCAMwatchInternet scams are on the increase. Who hasn’t experienced those exciting offers of free holidays, amazing share offers and false notices from ‘the bank’? As scammers become more savvy and scams harder to recognise, more and more Australians are falling victim to the cost and frustrations they inflict. Enter SCAMwatch.

SCAMwatch is a government Web site designed to help people recognise, report and protect themselves from scams. Created by the Australian Competition and Consumer Commission, it provides information about current scams and collects data about new ones.

Scams awareness monthDuring March 2007, Microsoft participated in the Australasian Consumer Fraud Taskforce’s scams awareness month, a four-week community awareness campaign to educate people about how they can protect themselves from scams.

Each week of the campaign, education efforts focused on one of the four SCAMwatch focal areas for consumer protection: money, phone, computer and identity.

Money Working from home schemes, advance fee fraud, lottery and money transfer scams have been around for a long time. Unfortunately they’re now more sophisticated than ever as scammers are adopting names of legitimate companies to capture data. Moreover, many are globally based, making it hard for authorities to track them down and recover losses.

Phone Nowadays everybody has a mobile phone, which means increased opportunities for phone scammers – people who call or text and ask for financial details, encourage people to invest in deals with amazing returns or other such scams.

ComputerThere are many ways for scammers to take advantage of people. Apart from viruses and worms, malware (malicious software) downloaded inadvertently from the internet can alter the way people’s computers work and capture personal and financial details.

IdentityIdentity theft is a critical issue for our society, with false or stolen identities often underpinning terrorist and criminal activity and undermining border and citizenship controls. It also causes stress and financial loss to everyday Australians. In fact, identity crimes are said to cost Australians more than $1 billion annually.

Something fishy?Report it Consumers who think they’ve spotted a scam can check the SCAMwatch Web site at www.scamwatch.gov.au for detailed information about scams, or report a scam on 1300 795 995.

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Help constituents and their families stay safe onlineWhether communicating, banking or shopping online, a connected lifestyle brings with it the risk of infected software, identity theft and other predatory conduct. Now available in soft copy, this guide lets people know what to look out for, how to safeguard computers, the actions and organisations to contact for help and how to educate children about the dangers.

Why not make this valuable resource available as a community service to your constituents? You can do this in three ways:

• sending it as an email attachment • uploading it to your Web site • printing your own copies for distribution.

To order, go to: www.microsoft.com.au/contactus

Software for worker productivityThe 2007 Microsoft Office systemBuilt with feedback from customers all around the world, the 2007 Microsoft Office system is designed to help people get more out of the software programs they use every day. The whole suite has been enhanced with a more intuitive user interface, improved features and advanced tools, so people can achieve great results in less time.

The suite’s most popular programs, including Microsoft Word, Excel, PowerPoint and Access, now feature a streamlined, uncluttered workspace that minimises distraction and makes it much easier to produce effective documents, spreadsheets and desktop database applications. And with advanced tools built in, the 2007 Office system will make communication and collaboration more efficient and effective.

New features at a glanceThe RibbonReplacing traditional menus and toolbars, the Ribbon is a whole new way of organising commands by grouping them in tabs aligned to how people work, and the tasks they wish to accomplish. And with contextual tabs that appear only when users start a task, people see only the features they need.

The Microsoft Office buttonNow with the Microsoft Office button people have a central location where they can see functions that enable them to share, protect, print, publish and send documents, simplifying the way they work.

Galleries with Live PreviewInstead of seeing a complex dialog box, users can view potential results in a Gallery and simply click the one they want. With Live Preview, they can also test how changes will look before going ahead. This streamlines the process of laying out, editing and formatting so users can create professional results with less time and effort.

New open standard delivers more interoperable documentsLast year the international information and communication technology standards body ECMA approved Office Open XML as a standard document file format, safeguarding the continued use of billions of existing documents and laying the foundation for greater document processing interoperability in future. The standards team included representatives from Apple, Barclays Capital, BP, the British Library, Essilor, Intel, Microsoft, NextPage, Novell, Statoil, Toshiba and the United States Library of Congress.

Office Open XML was developed in response to government, consumers and software developers needing a simple file format that is suited to the Web, can be used across multiple applications and platforms and allows backward compatibility for documents created in the past. Office Open XML fulfils all these requirements and more, greatly improving interoperability of documents, including spreadsheets, word processing files and presentations, across multiple applications and platforms. The specification for Open Office XML is around 6000 pages, making it one of the most transparent and detailed standard specifications ever.

To encourage routine interoperability, the new file formats are offered under an open, royalty-free licence. Office Open XML formats are the default file format in the 2007 Microsoft Office system.

Information worker

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Local jobs, local economies, local growth As major innovations are introduced, they spark a wave of opportunity, further innovation and growth for the entire economy. This is particularly true of the IT industry, where new capabilities stimulate activity across a vast ecosystem of IT companies, with enormous benefit to regional economies.

A recent Asia-Pacific study by international consultancy IDC* revealed just how much local economies benefit from this activity. Covering 10 markets, the study showed that the Microsoft IT ecosystem alone accounted for more than:

• 1.3 million IT jobs• $12 billion in tax revenues – ensuring that the wider community can share in the success of the IT industry• $14 in revenue for partner companies for every $1 in sales by Microsoft.

Asia-Pacific economies are already benefiting from the release of Microsoft’s 2007 product range as hardware, software and services companies build products and services that take advantage of the greatly extended capabilities now available. This economic growth is likely to be sustained over several years.

One of the reasons for this huge economic impact is that the products were developed with reference to a set of principles supporting choice, industry opportunity and interoperability. This means they’re not only easier to deploy, bringing benefits to businesses everywhere, but creates a sound foundation for innovation, healthy competition and, ultimately, profitability for the region’s vibrant IT sector.

* IDC IT Economic Impact Study, 2005 – including Australia, India, Indonesia, Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand and Vietnam. Figures converted to Australian dollars.

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Gadget connects CityLink Keen to improve information services to customers of Melbourne’s CityLink motorway and increase customer satisfaction, Transurban engaged Australia’s largest Web development company, the Web Development Group (WDG), to come up with a solution.

WDG developed a prototype to demonstrate how key CityLink information could be made available via a ‘gadget’ on the new Windows Vista Sidebar, letting people view it from the desktop, without needing to navigate to the CityLink Web site. Travellers would have instant access to all the information they need, including travel times and congestion information as well as other important news, special offers and alerts.

WDG employs over 135 people to deliver groundbreaking internet solutions like the one it developed for Transurban.

CityLink’s Web services make it simple for motorists to get information

about the roads they use every day

Putting vital information on the desktop with Gadgets,

a new feature of Windows Vista

Increasing access

Empowering people with disabilities to use technologyMore accessible computingMicrosoft started off with a vision for a computer on every desktop – with a dream that eventually everybody would have access to the tools that are changing the way we live, work and play. This goal, thought of as ludicrously ambitious by some, is now becoming a reality for many – and recognising that people with disabilities also need to access technology, Microsoft has developed Windows Vista with access improvements that enable everyone to benefit from this new product.

Three of these enhancements are:

1. Ease of Access Centre With this feature in place users are able to adapt their computers depending on the sorts of physical challenges they face. For example, by pinpointing problems such as difficulties seeing faces on TV or difficulties hearing conversations in a crowded room, it offers personalised accessibility settings that allow disabled people to take full advantage of the productivity tools we all enjoy.

2. Speech recognition This feature recognises users’ voices – ideal for those who find it difficult to use a mouse or keyboard.

3. Microsoft Narrator This text-to-speech tool now reads Narrator menus without leaving the active window. Users also enjoy a more pleasant, natural sounding voice.

Microsoft also works with over 150 Microsoft Assistive Technology Vendors worldwide. Through this partnership network we provide free technical support and direct product development access to speed up the development of technologies to improve the lives of disabled people everywhere.

Giving people with a disability a voiceIn 2006 the New South Wales government and Microsoft announced a $1 million joint initiative designed to help the state’s 1.2 million people with a disability and their carers live richer, more productive lives using technology.

The initiative will help make communications devices more affordable and easier to upgrade, particularly for children. It will also provide an innovative Web site where people with a disability, their families, service providers and health professionals can all find information on services, supports and health care.

Launching the initiative, the former state Minister for Disability Services, John Della Bosca, said, “Communicating with a child with a disability can be difficult for parents and carers – this funding will clear the way for a new generation of portable simulators to give these children voices.”

Disability touches more than 30% of people in New South Wales, with more than 800,000 caring for someone across the state. These two projects are designed to make a real difference to these families by helping some of our society’s most vulnerable people reach their potential.

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Meals on Wheels rolls out new databaseAs well as working directly with the community, Microsoft also works closely with many service providers that are making a real difference to people who are often left behind in the race towards greater innovation. For example, we work with CommunityTech, an Australian independent software vendor that provides software products and development services to the social services sector.

CommunityTech, in turn, is helping the Meals on Wheels service, which relies on the good work of many dedicated volunteers and staff to provide a vital service to the community.

To run the Meals on Wheels service in a reliable and efficient manner a great deal of information needs to be kept in order, including the coordination of all the volunteers involved. The MealsOnDisk software has been designed to solve this problem by simplifying the administration of meal preparation and distribution.

Until recently many kitchens were using cards, lists and whiteboards to keep customer and delivery information. Others were using spreadsheets to track some of the information. Now MealsOnDisk allows these details of customers and their meal deliveries to be stored in a single database.

MealsOnDisk was released in 2004, and is currently being upgraded to provide support for Windows Vista and SQL Server 2005.

The annual Unlimited Potential (UP) conference at Sydney’s Powerhouse Museum in February 2007 brought together over 200 managers from UP centres nationwide. Colleagues from The Smith Family, Work Ventures, the Australian Seniors Computer Clubs Association, Yarnteen, the Aboriginal and Torres Strait Islander Corporation and the Inspire Foundation met for skills-based training. They also had the chance to network, share ideas and discuss common challenges.

Officially opened by Her Excellency Professor Marie Bashir AC, Governor of New South Wales, the two-day conference covered a broad range of topics, including:

• Pathways to employment

• Software and accessibility

• Online communities

• Changing your world with affordable technology

• Innovation and productivity

• ICT and Aboriginal learners

A highlight was a vibrant roundtable discussion on leadership and technology, which was attended by government, business and community leaders.

One participant summed up the mood of the event stating that “it impacted on motivation, inspiration, upgrading skills and improving sustainability. The conference demonstrated just what can be achieved when business, government and community sectors join forces to initiate social change.”

Partnering to broaden digital inclusion

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Director of the Australian High Tech Crime Centre, Federal Agent Kevin Zuccato, talking about the role of law enforcement in protecting child safety at the 2007 UP Conference

2006 Senior Australian of the Year, Sally Goold, speaking at the conference

What is the UP program?Microsoft Unlimited Potential (UP) is a global initiative to help broaden digital inclusion and aid global workforce development by providing technology skills through community education. Working with community partners, Microsoft Australia has committed more than AU$40 million over five years in software, cash, curriculum and training to help our most disadvantaged.

Unlimited Potential aims to increase computer literacy among all members of the population regardless of age, background, education, location or socioeconomic status. In Australia, the program supports more than 200 community-based technology learning centres in rural and urban areas, with more centres opening their doors every year. These centres help improve lifelong learning opportunities for disadvantaged people by connecting people and communities. Through local partnerships, the program creates affordable opportunities for local people to contribute to society and their communities.

For more information, visit www.microsoftunlimitedpotential.com.au

This document is provided by way of general information only and should not be relied upon without obtaining independent advice. ©2007 Microsoft Corporation. All rights reserved. Microsoft, Access, BitLocker, Excel, Internet Explorer, PowerPoint, SQL Server, Windows, Windows CardSpace, Windows Vista and Your potential. Our passion. are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. 10497-0507/MS

Setting standards for others to followThe Windows principlesTo ensure that the IT ecosystem works for all those involved, it’s important that industry players focus on providing choice for customers and PC manufacturers, creating opportunities for third parties and nurturing healthy competition and innovation.

This is particularly important for the Microsoft® Windows operating system, which has been so enthusiastically adopted worldwide and is a fundamental part of the information economy. Recognising that with this success comes responsibility, Microsoft aims to provide a universal platform that serves everybody, including competitors, so people everywhere can benefit as new technology comes to the forefront.

Building on an emerging global consensus as to the importance of technology interoperability and continual competitive innovation, Microsoft in 2006 adopted an ethical framework for Windows that embraced three foundation self-regulatory principles.

Ethics first

“ Through the Windows Principles, we are taking a transparent and accountable approach to the future of our operating system.”

BradSmith Senior Vice President

and General Counsel, Microsoft Corporation

1. Choice for manufacturers and customersTo design and license Windows on contractual terms to make it easy to install non-Microsoft programs and to configure Windows-based PCs to use non-Microsoft programs instead of or in addition to Windows features. This means that computer manufacturers and customers are free to add any software to PCs that run Windows. More broadly, every computer manufacturer and customer is free to install and promote any operating system, any application and any Web service on PCs that run Windows. Ultimately, end users are free to choose which software they prefer to use. On top of this, computer manufacturers are free to add icons, shortcuts and the like to the Windows Start menu and other places used to access software programs so that customers can easily find them. And Microsoft will design Windows so as to enable computer manufacturers and users to set non-Microsoft programs to operate by default in key categories, such as Web browsing and media playback, in lieu of corresponding end-user functionality in Windows.

2. Opportunities for developersMicrosoft is committed to designing and licensing all the parts of the Windows platform on terms that create and preserve opportunities for developers and creators to build innovative products on the Windows platform – including products that directly compete with Microsoft’s own products. This means that anything Microsoft’s products can do in terms of how they plug into Windows, competing products will be able to do as well. In Web services, Microsoft will design Windows Live as a product that is separate from Windows. Importantly, Microsoft will design and license Windows so that it does not block access to any lawful Web site or impose any fee for reaching any non-Microsoft Web site or using any non-Microsoft Web service.

3. Interoperability for usersMicrosoft is committed to meeting customer interoperability needs. This means among other things that Microsoft will make available all of the communications protocols that it has built into Windows and that are used to facilitate communication with server versions of Windows. Microsoft will generally license patents on its operating system inventions (other than those that differentiate the appearance of Microsoft’s products) on fair and reasonable terms so long as licensees respect Microsoft’s intellectual property rights.