Microsoft Acquires Vicinity

REDMOND, Wash. -- Microsoft Corp. (NASDAQ: MSFT) today announced that it has entered a definitive agreement to acquire Vicinity Corporation (NASDAQ: VCNT) , a leading provider of location-based technology solutions, in a transaction valued at approximately $96 million. By combining key assets and working in tandem, the two companies aim to more quickly and effectively design, build and deliver enhanced Microsoft(R) MapPoint(R) .NET platforms, tools and solutions that let customers take full advantage of location-enabled applications. The transaction is expected to be completed before the end of first quarter of 2003 and will result in Vicinity being merged with the MapPoint Business Unit at Microsoft. Both Microsoft and Vicinity expect an integration road map that helps assure customers, developers and third-party vendors of uninterrupted services and a seamless transition. Vicinity is a pioneer in developing and implementing location-based services technology, with years of understanding customer needs and end-user experiences. Microsoft, with its MapPoint .NET platform, has delivered a flexible, Internet-standards-based platform for location-based services. The acquisition blends the strengths of two companies with complementary goals, resources and platforms as well as mutual enthusiasm for the benefits of location-enabling applications. "Our combined strengths will put us in a better position to deliver the benefits of location in the widest range of enterprise and consumer applications," said Ted Johnson, Corporate Vice President at Microsoft. "Vicinity's extensive experience in providing end-to-end solutions and value- added services perfectly complements Microsoft's MapPoint .NET XML Web services platform, Microsoft(R) technology assets in related areas including business intelligence and CRM, and the strong Microsoft independent software vendor and solutions provider channel. This acquisition will accelerate the adoption of location-based technology as a valuable ingredient of mainstream enterprise application development. And by enlarging our scope to encompass a .NET infrastructure, we can offer customers a broader variety of contexts in which location-based technology is deployed." Microsoft Corp.