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Technology Stocks : How high will Microsoft fly?
MSFT 485.92+0.4%Dec 19 9:30 AM EST

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To: Brian Malloy who wrote (18219)3/17/1999 9:47:00 PM
From: puborectalis  Read Replies (1) of 74651
 
Microsoft today launched an Internet-enabled telephone called Hermes, based on its Windows CE operating
system and initially to be produced by Matsushita Electric Industrial's Panasonic, Philips, Acer, and others.

The next-generation phones will meld a traditional receiver with a display and smallish keyboard, and will be
aimed both at consumers without PCs and those who have a PC but want more convenient access to
Internet-based services, Microsoft said. Email and full Internet browsing are a few of the services planned in
conjunction with address book and caller ID functions.

Microsoft is working with other telephone companies and Internet service providers to set up more partnerships
that produce Hermes products and services. The first devices are expected to be on the market early next year.
Microsoft already offers a cordless phone that hooks up directly to a PC, although the device isn't a full fledged
Web-phone.

The Redmond, Washington, software giant's push into the phone market coincides with similar announcements
from a variety of other companies angling for a stake in emerging markets for digital information appliances. The
convergence of the once-distinct consumer electronics and PC industries comes as phone companies upgrade
networks to digital technology, enabling them to move voice and data communications over one path to a single
device.

Observers say the key to future growth for such technology is adding new capabilities to devices people are
already familiar with, such as phones and televisions.
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