Microsoft to buy online ad exchange

Bangalore

July 30th 2007

Microsoft Corp. said it would acquire a Carpinteria, California-based
advertising exchange platform company, for an undisclosed amount. The software
giant announced it has agreed to acquire AdECN Inc., whose technology serves as
a hub where advertising networks can come together in a neutral, real-time
auction marketplace for buying and selling display advertising.

The deal is a key component of Microsoft's strategy to develop a
comprehensive search and display advertising platform enabling advertisers and
publishers to maximize return on investment (ROI) on their digital advertising
investments.

"Both Microsoft and AdECN have a deep commitment to creating the
technologies and platforms that enable advertisers and publishers to maximize
their ROI in the digital marketplace," said Kevin Johnson, president,
Platforms and Services Division at Microsoft. "We believe the addition of
AdECN to the Microsoft portfolio will create more efficiency for the industry by
forming a more robust marketplace between advertisers and publishers,
aggregating more supply and demand. This is good for the whole advertising
industry."

Founded in 2003, AdECN brings both key technologies and significant domain
expertise to the Microsoft team. Advertisers and publishers are expected to
benefit from this deal, Microsoft said.

AdECN, which has approximately 30 employees, will continue to operate from
its headquarters near Santa Barbara, Calif. as part of Microsoft's Online
Services Business.

"Joining forces with Microsoft will provide the capital and resources to
enable AdECN to scale the exchange at a much faster pace, making it more
attractive to the advertising networks and other traffic aggregators looking to
better serve their advertisers and publishers," said William Urschel,
founder and CEO, AdECN.

The exchange concept is similar to the NASDAQ which serves as the hub for
financial brokerages, enabling all parties to come together and have access
through a neutral party to a larger pool of supply and demand for their clients.
AdECN market advertising networks trade on behalf of their advertisers and
publishers. This means that AdECN supports, rather than competes with, the
various players in the online advertising industry.

The acquisition is expected to be completed in the first half of Microsoft's
fiscal year 2008. The acquisition is not expected to have a significant impact
on the financial guidance previously issued by the company.

Incidentally, Yahoo! in April announced that it had entered into a definitive
agreement to acquire Right Media Inc., creator of the Right Media Exchange.