REDMOND, Wash. — June 1, 2012 — Microsoft Corp. today announced the availability of the Windows Upgrade Offer providing consumers who buy qualifying Windows 7 PCs the option to purchase a downloadable upgrade to Windows 8 Pro for an estimated retail price of $14.99 (U.S.) during the time of the promotion.

Beginning June 2, 2012, consumers who purchase up to five new Windows 7 PCs preinstalled with Windows 7 Home Basic, Home Premium, Professional, or Ultimate will be eligible to purchase an upgrade to Windows 8 Pro upon general availability of Windows 8.  Qualifying purchases must be made before January 31, 2013, and offers must be redeemed by February 28, 2013. 

For additional details on the Windows Upgrade Offer, please see the company’s announcement at http://www.windowsupgradeoffer.com. 

Unlike previous upgrade programs, Microsoft will manage the redemption process, including eligibility verification, payment, software delivery, and support.  Delivery of Windows 8 Pro will occur via electronic software distribution.  

In association with the Windows Upgrade Offer, Microsoft will defer revenue from eligible sales under the program to the earlier of the fulfillment date or the program’s expiration date.  For the fourth quarter of fiscal year 2012, Microsoft will defer an estimated $450 million to $550 million of revenue. The deferral only impacts the timing of revenue recognition and will not impact cash flows from operations.

Microsoft Investor Relations will host a conference call and webcast at 9:00 a.m. PDT today to discuss details of the accounting treatment for the program.  The conference call will be hosted by Frank Brod, chief accounting officer, and Bill Koefoed, general manager of Investor Relations, and will be made available on the Microsoft Investor Relations website.