Microsoft and the Hong Kong Productivity Council Unveil

HONG KONG, December 2, 2005 – Microsoft® Hong Kong Limited and the Hong Kong Productivity Council (HKPC) today unveiled a new initiative dubbed Productivity Plus, a joint effort for the Hong Kong manufacturing industry. The partnership was marked by a Memorandum of Understanding (MOU) signing ceremony officiated by Jean-Philippe Courtois, President of Microsoft International; K K Yeung, Executive Director, HKPC; Alexander Huang, Regional Director, Greater China Region, Microsoft Corporation and Stephen Lee, Director, HKPC, reinforcing their joint commitment to the growth of the local manufacturing sector.

The Productivity Plus Initiative is a new strategic alliance that will provide resources to help local manufacturers meet new business imperatives, such as regulatory compliance, as well as capitalize on new technologies and tools to gain greater agility and efficiency, increasing competitiveness in regional and global markets.

To enable participants to build on their familiarity of Microsoft software and reduce the learning curve, Microsoft is donating nearly 100 software licenses for HKPC to utilize for its training programs under Productivity Plus. More than 35 companies, including small to medium size enterprises (SMEs) and locally-listed manufacturing companies have already signed up for the beta site of the "WEEE (Waste Electrical and Electronic Equipment)/RoHS (Restriction of Hazardous Substances) Information Portal", one of Productivity Plus' first offerings. Among the first companies to join the program are Original Equipment Manufacturers (OEM) and Original Design Manufacturers (ODM) from the toys, lighting and electronic sectors. According to Eddy Tsoi, Director of Leadway Technology Corp. Ltd, one of the pilot users, the company has begun factory clean up programs and put up identifications for RoHS and non-RoHS materials.

"The next key step is to establish a highly effective system for the tracking and retrieval of information to support our target of becoming a 'Green Manufacturer'," said Tsoi. "The Productivity Plus Initiative and the technology solutions offered by HKPC and Microsoft will enable us to be increasingly agile and efficient as we move forward in our compliance efforts."

Hong Kong supports a robust manufacturing sector with over 15,000 manufacturers and nearly 100,000 import/export traders , all working to adapt to changing global markets, and escalating demand for innovative products at lower cost. The overwhelming response to the Productivity Plus Initiative reflects the need and enthusiasm for innovative solutions that will enhance Hong Kong manufacturers' competitiveness in an increasingly competitive global marketplace.

"We are very impressed with Microsoft's attitude towards corporate citizenship, which is in tune with the mission of HKPC as an industry support organization. Although different in business nature, HKPC and Microsoft do share a few common goals and values, such as our stance for green manufacturing and the importance of Intellectual Property management capability," said Yeung. "Through the Productivity Plus Initiative, we look forward to a mutually beneficial relationship with Microsoft geared towards helping local businesses seize new opportunities and meet the growing challenges of the 21st century."

"Microsoft is delighted to expand our relationship with HKPC, focused on supporting various industry verticals that fuel Hong Kong's economic recovery and growth. As a leader in delivering innovative and cost-effective solutions that answer the distinct needs of the manufacturing industry, this initiative is indeed a welcome development in our long-established relationship with HKPC," said Alexander Huang, Regional Director, Greater China Region, Microsoft Corporation. "HKPC's expertise in working within the local manufacturing community, coupled with the strength of Microsoft's technology innovation and partner ecosystem, offers manufacturers an incredible new opportunity to find new value in their existing systems, leverage current technology investments to improve efficiency and remain competitive on the global stage."

The MOU signed between the two parties focuses on five key areas:

Accelerating Industry Competitiveness

Microsoft and HKPC will jointly help Hong Kong manufacturers enhance competitiveness as they capture opportunities in the global market. This includes providing resources to address Compliance to EU Directives such as RoHS and WEEE. Both parties also pledged to assist in developing systems to help manage Electronic Manufacturing Services (EMS) providers and manufacturing outsourcing.

Other areas of collaboration include the establishment of Product Development Management (PDM) tools to support OEMs, ODMs and Own Brand Manufacturers (OBMs).

Microsoft tools and resources can facilitate efficient and reliable supply chain management as manufacturers capture opportunities presented by China's entry to the World Trade Organization and the establishment of the Closer Economic Partnership Arrangement (CEPA).

Joint Development of the Local IT Industry

Local Independent Software Vendors (ISVs) are in the best position to understand the needs unique to the wide range of local enterprises. HKPC and Microsoft believe support to emerging ISVs through an incubation program will help accelerate the development of customized solutions tailored to the distinct requirements of various verticals, including the manufacturing sector. This alliance will help ISVs capitalize on the rich functionality delivered at the core of Microsoft technology to develop local vertical solutions as well as leverage Microsoft's partnership program and marketing opportunities for better industry exposure. Microsoft's broad ecosystem of partners make the benefits of innovation real to customers through solutions build on Microsoft technologies that specifically address areas such as RFID, Product Design and Development, Procurement, EMS Management, Business Intelligence, Demand Chain Management, ERP and CRM.

Improved SME Productivity through better IT deployment and awareness

HKPC and Microsoft will jointly assist in helping local small and medium enterprises (SMEs) increase productivity by providing them access to Microsoft technologies and partner ecosystem, addressing the historical barrier of bulky and cost-prohibitive customized technology solutions.

Through increased awareness of recent innovations and benefits of IT modernization, local SMEs are empowered to improve IT adoption and competitiveness through exchange of best practices and success stories. An immediate deliverable of the Productivity Plus Initiative will be a series of Do-It-Yourself (DIY) trainings and seminar programs addressing hot topics of the industry.

Pan Pearl River Delta Business Expansion for Customers and ISVs

HKPC and Microsoft will facilitate transfer of latest technology, solutions, and solution partners' expertise to Pan Pearl River Delta customers. In addition, the alliance will explore new market opportunities in the Pan Pearl River Delta for Hong Kong ISVs. To guarantee success of the program, HKPC will engage its subsidiaries in Guangzhou, Dongguan and Shenzhen in joint marketing activities.

Intellectual Property Rights Management

Today's MOU agreement further underscores Microsoft and HKPC commitment to jointly invest and help Hong Kong industry adopt the Innovation Knowledge Enterprise® Model of Intellectual Property Rights (IPR) Protection, specifically targeting over 60,000 enterprises in Guangdong and Hong Kong whose core business asset is Intellectual Property. The goal is to standardize the Intellectual Property Management protocol by 2006 and begin issuing certification by 2007.

For enquiries, local manufacturers can contact Daniel Shum of HKPC at (852)2788 6240 or daniels@hkpc.org ; or Ivan Ko of Microsoft at (852) 2804 4496 or ivank@microsoft.com.

For media enquiries, please contact:

At HKPC
Betty Lee - (852) 2788 5895; justina@hkpc.org

At Microsoft
Penny Cheung - (852) 2804 4702; i-pennyc@microsoft.com

At Shout Waggener Edstrom
Reen Leung – (852) 2578 2894; reenl@waggeneredstrom.com
Vincent Mak – (852) 2578 2897 ; vincentm@waggeneredstrom.com