Microsoft to acquire Tellme

Microsoft Corp. today announced it will acquire Tellme Networks, Inc., a leading provider of voice services for everyday life, including nationwide directory assistance, enterprise customer service and voice-enabled mobile search. Microsoft and Tellme share a vision around the potential of speech as a way to enable access to information, locate other people and enhance business processes, any time and from any device. Combining Tellme's talented people and expertise in high-volume voice services with Microsoft's platform, resources and worldwide customer reach will inspire new and innovative solutions.

Tellme is a leader in voice services for the phone, including its popular mobile search services on 1-800-555-TELL. Founded in 1999, the privately held company answers millions of calls every day for information such as finding local businesses, driving directions, sports scores, stock quotes, weather, news, movie show times and more. Businesses use Tellme's voice services and platform to provide customers with voice-access services ranging from banking to package tracking. These services are built on Tellme's voice platform that analyzes caller requests to continually improve the system's accuracy and overall caller experience.

Potential areas of development resulting from the deal will range from hosted voice-enabled customer service solutions that complement Microsoft's existing unified communications offerings to voice user interfaces in existing Microsoft products to search services on mobile phones that integrate with Live Search for mobile offerings. In addition, developers and partners will be able to build new speech-based solutions on top of a scalable, standards-based voice-enabled applications platform.

This acquisition will mark an important step forward in Microsoft's strategy for delivering software plus services that put people at the center of technology solutions in the office, at home and on the go. For more than a decade, Microsoft has enabled speech, handwriting and touch as forms of natural user input, making computing and digital devices easier to use. Combining Tellme's technologies with Microsoft's existing and future products and services will help improve the way people use voice to find, use and share information:

• Unified communications.
Tellme's voice-enabled services and solutions for enterprise customers complement Microsoft's unified communications voice services portfolio. This will allow customers and industry partners to build highly scalable voice solutions that leverage rich identity, presence, messaging and application integration.
• Speech platform.
Tellme's robust voice-enabled platform helps open new doors for Microsoft's hundreds of thousands of developers and partners to build innovative speech solutions based on open standards.
• Mobile services and search.
Tellme's speech expertise and work in mobile search, combined with Microsoft's innovative local and mobile search offerings, will help take the mobile search usability experience to the next level.
• Software plus services.
In the long term, Tellme technology will enhance Microsoft's many voice-enabled applications, including the Windows Vista operating system, the Microsoft Office system, and mobile applications such as Windows Mobile and Windows Automotive.

Financial terms of the acquisition were not announced. The deal is expected to be completed in the second quarter of 2007. Tellme, which has more than 320 employees, will continue to operate from its Mountain View, Calif., headquarters as part of the Microsoft Business Division. Following the closing of the acquisition, the Tellme business is expected to be maintained, and members of the Tellme executive team and staff are expected to join Microsoft.