Microsoft and Toyota Announce Strategic Partnership on
Next-Generation Telematics

REDMOND, Wash., and TOYOTA CITY, Japan ― April 6, 2011 ― Microsoft Corp. and Toyota Motor Corp. (TMC) today announced they have forged a strategic partnership and plan to build a global platform for TMC's next-generation telematics services using the Windows Azure platform.  Telematics is the fusing of telecommunications and information technologies in vehicles; it can encompass GPS systems, energy management and other multimedia technologies.

As part of the partnership, the two companies plan to participate in a 1 billion yen (approximately $12 million) investment in Toyota Media Service Co., a TMC subsidiary that offers digital information services to Toyota automotive customers.  The two companies aim to help develop and deploy telematics applications on the Windows Azure platform, which includes Windows Azure and Microsoft SQL Azure, starting with TMC's electric and plug-in hybrid vehicles in 2012.  TMC's goal is to establish a complete global cloud platform by 2015 that will provide affordable and advanced telematics services to Toyota automotive customers around the world.

As part of its smart-grid activities, aimed at achieving a low-carbon society through efficient energy use, TMC is conducting trials in Japan of its Toyota Smart Center pilot program, which plans to link people, automobiles and homes for integrated control of energy consumption.  TMC believes that, as electric and plug-in hybrid vehicles become more popular, such systems will rely more on telematics services for achieving efficient energy management.

Microsoft has a long history of delivering platforms and services to the automotive market, including in-car infotainment systems built on the Windows Embedded Automotive platform, in-car mapping services with Bing and the Microsoft Tellme voice application, and many other consumer solutions.

"Today's announcement of our partnership with TMC is a great example of how we continue to invest in the automotive industry and of our commitment to power the services that are important to consumers," said Microsoft CEO Steve Ballmer.  "It further validates the power of the cloud, as the Windows Azure platform will provide the enterprise-grade, scalable platform that TMC needs to deliver telematics in its automobiles worldwide."

"This new partnership between Microsoft and Toyota is an important step in developing greater future mobility and energy management for consumers around the world.  Creating these more efficient, more environmentally advanced products will be our contribution to society," said Akio Toyoda, president of TMC.  "To achieve this, it is important to develop a new link between vehicles, people and smart center energy-management systems."

Virtual Press Conference Information
Following a signing ceremony today at Microsoft's Redmond, Wash.-based headquarters, Ballmer and Toyoda will hold a virtual press conference online from 1 to 2 p.m. PDT. Media can register for the event at http://www.studiosevent.com/press-event and ask questions of both company leaders.  More information on the announcement is available at the Microsoft News Center at http://www.microsoft.com/newscenter or the Toyota USA Newsroom at http://www.toyotanewsroom.com.

About Toyota
Founded in 1937, TMC (NYSE "TM") is a global automotive company with production in 27 countries and sales in more than 170 countries.  Founded in 2000 as a wholly owned subsidiary of TMC, Toyota Media Service is a consumer IT service provider for Toyota automotive customers that actualizes the connected, in-car experience.

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.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news.  Web links, telephone numbers and titles were correct at time of publication, but may have changed.  For additional assistance, journalists and analysts may contact Microsoft's Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/news/contactpr.mspx.

Before I discuss today's announcement, I would like to take a moment to express my gratitude to the people of the United States...the U.S. government...and the associates here at Microsoft... for their support of those affected by the earthquake and tsunami in Japan.

Our deepest sympathies go out to everyone affected by this disaster.

Toyota and its people are supporting the relief efforts in the affected regions and helping to ensure the safety of our team members...dealers...and suppliers... along with their families.

With everything going on in Japan, I debated whether or not to come here today.  But I recently visited the most severely affected area and talked to some of its people.  I came away believing...that in addition to supporting the recovery efforts... the best thing I can do for them...and Japan...is to provide hope and steady economic progress for the future.

So, I'm here today...with Microsoft...to build a better future.

This new partnership between Microsoft and Toyota is an important step in developing greater future mobility and energy management for consumers around the world.

It also fits perfectly with the Toyota Global Vision.

Last month, I outlined the new vision and the kind of company that I want Toyota to be as we move forward.

I want Toyota to be a company that delights its customers with better products at affordable prices...exciting and inspiring vehicles and services that exceed customer expectations and bring a smile to their faces.  I believe creating these more efficient, more environmentally-advanced products will be OUR contribution to society.

In order to achieve this, it is important to develop a new link between vehicles and people and smart center energy management systems that add value to our products while conserving natural resources.

So, it is an honor for me to announce this partnership with Mr. Ballmer.

Our strong relationship with Microsoft spans more than a decade in the field of telematics and...something dear to me...the GAZOO mobile Internet project I directed in Japan.

With our mutual success in the past, I strongly believe this new partnership will be EVEN better.

Together, utilizing Windows Azure and Microsoft's vast information infrastructure, we will boost the value of automobiles by making them "information terminals" ...moving beyond today's GPS navigation and wireless safety communications while reducing driver distraction.

For example, this new system will include advanced car-telematics with virtual operators and voice recognition... management of vehicle charging to reduce stress on energy supply...and remote control of home appliances, heating and lighting.

And with the introduction of Toyota plug-in hybrids and electric vehicles NEXT year...our cars will play a big role in the global expansion of what we call "smart centers" ... on-board systems capable of efficiently managing overall energy consumption of cars... driving trips...and homes.

So...as we enter the "smart grid" era...I am confident... that through our partnership... we WILL improve our products' contribution to SUSTAINABLE mobility...in which we can meet the travel needs of our customers and support a good economy, while maintaining safety and preserving the environment.

In short, the guiding principle of this venture is...to build a better future for our customers...automobiles...and all of society.

As a result, I view this alliance as VITAL to Toyota's future...and we are open to pursuing similar partnerships in the future.

Thanks again to everyone at Microsoft... all of us at Toyota look forward to GREAT progress from our continuing partnership.