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To: jhild who wrote (11396)1/7/1998 11:15:00 PM
From: Moonray  Read Replies (1) | Respond to of 22053
 
Microsoft unveils plans for car dashboard computer

SEATTLE, Jan 7 (Reuters) - Microsoft Corp., in its latest bid
to expand its market far beyond the desktop, unveiled software
Wednesday that will power a new class of dashboard-mounted,
voice-activated automobile computers.

The software giant, which dominates the market for personal
computer software, also said it planned to ship a version of
its Windows CE operating system for hand-held devices that will
compete directly with 3Com Corp.'s (COMS.O) popular PalmPilot.


Both products will be made by a variety of manufacturers and
begin to show up in retail stores by midyear, Microsoft Senior
Vice President Craig Mundie said in an interview before a speech
at the Consumer Electronics Show in Las Vegas.

While Microsoft labeled the dashboard-mounted system an Auto PC,
the first-generation devices will have more in common with car
stereos than personal computers, and Mundie was quick to
quash any notion that drivers would use them to surf the
Internet while commuting.


Mundie said the product would feature an AM-FM stereo and CD
player, but also would be able to accept voice commands and
translate text messages to a synthetic voice output. That
would allow users to listen to electronic mail messages,
traffic reports or navigational directions.

Future applications will allow the devices to be integrated
with cellular telephones, pagers and the diagnostic system of
the car itself, Mundie said.

He said taxi and bus fleet operators and traveling sales
representatives were among the potential customers.

"I actually think the device is quite useful to everyone,"
Mundie said.

The devices, from manufacturers including Clarion Corp. of
America, could start at less than $1,000. Microsoft is in
discussion with auto manufacturers, though because of long
design cycles the devices will not be available as factory
options until the model year 2000 at the earliest, Mundie
said.

Microsoft labeled its second new platform the Palm PC --
to the great irritation of executives at 3Com's Palm Computing
unit, who said their lawyers would be watching carefully to
ensure its trademarks and copyrights are protected.

"It's absolutely clear that they're trying to leverage the
huge success we've had," said Donna Dubinsky, president of the
3Com division. "The selection of that particular name for
products that are targeted at our products -- calling that a
coincidence would be a bit naive."

Mundie said Microsoft was using Palm PC as a generic name for
the platform, and he said the Windows-powered devices would
feature a more readable screen and a more flexible way to
input data than the PalmPilot.


With more than 1 million units sold since the introduction of
the shirt pocket-sized Pilot in April 1996, the 3Com device has
the most successful product launched to date in the category of
personal digital assistants, tiny computers mainly used to manage
contacts, calendars and messages.

Microsoft has tried to edge into the field several times, but
Mundie said the company has been gaining momentum especially
since the launch of version 2.0 last fall.

He said 500,000 hand-held personal computers had been shipped
since the launch of Windows CE in October 1996, including 170,000
in the past two or three months.

The hand-held PCs feature a "clamshell" opening, Windows-style
screen and a tiny keyboard and include versions of Microsoft
applications such as Word and Excel.

The new pen-based Palm PCs will feature a much smaller
screen and no keyboard but will record voice messages and have
the ability to recognize handwriting or record handwritten
notes and images.

Philips Electronics NV (PHG.AS) said it would introduce its
Nino 300 personal companion in the second quarter at a suggested
retail price of $400 to $500, compared with less than $300 for
the PalmPilot.


((-- Seattle bureau 206-386-4848, marty.wolk@reuters.com))

REUTERS

Copyright 1997, Reuters News Service. All rights reserved. Replication or redistribution of Reuter's content is expressly prohibited without
the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance
thereon.
nasdaq!

o~~~ O