MICROSOFT TO SPEND $1 BILLION TO MARKET WINDOWS XP

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(July 25, 2001) -- Microsoft Corp. and its partners will spend $1 billion in marketing to back the launch of its Windows XP system, Richard Belluzzo, president and COO said Tuesday.

Speaking at the Cable & Telecommunications Association for Marketing conference in San Francisco, Mr. Belluzio said the software's Oct. 23 launch is the company's "No. 1 priority."

As part of his remarks detailing opportunities for cable operators, Mr. Belluzzo said he expects that "one day for every piece of software [Microsoft sells, it] will have a services connection." New Microsoft products, such as the Xbox, he noted, are "plumbed" for broadband.

Mr. Belluzzio, in response to questions after the discussion, said Microsoft will maintain its advertising spending despite the economic downturn and declined to go into specifics about the launches. -- Alice Z. Cuneo

Copyright July 2001, Crain Communications Inc.

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