SEATTLE, WA (Feb. 14, 2001) -- The Microsoft Windows XP operating system has made its public debut at the Experience Music Project in Seattle. Bill Gates, Microsoft chairman and chief software architect, and Jim Allchin, group vice president of Windows and the platforms product group, introduced Windows XP (previously code-named "Whistler"), the new Windows for home and work. The event featured a sneak peek at the new visual design for Windows and on-stage demonstrations of the new OS's features, as well as videotaped statements by industry leaders pledging unprecedented support for the product.

Windows XP, for "experience,'' has taken thousands of programmers and more than $1 billion to create. So far consumer and business Windows versions have been based on different programming technologies, with Windows 95, 98 and Me running on the older DOS code base and Windows 2000 runnning on NT. With XP, Microsoft is retiring DOS and unifying its operating systems under the NT umbrella.

Although one of XP's biggest selling points is expected to be that it is vastly more stable and secure than earlier consumer versions of Windows, Gates and Allchin played up its raft of new features and streamlined feel. "People want to do more and more with their PCs," enthused Gates. "Windows XP builds on their dreams, taking the power and adaptability of the PC to a new level. It delivers on our vision of bringing the most advanced Windows ever to home users, unlocking the true and amazing potential of everyone's PC."

Windows XP, built on the enhanced Windows 2000 engine, features a dramatically different new look and aims to extend the personal computing experience by uniting PCs, devices and services. Windows XP also represents an important step in delivering on Microsoft's .NET strategy. The Windows XP-based PC will be at the center of the plan, attempting to provide complete computing experiences that redefine the relationship between people, software and the Internet.

The new visual design hopes to facilitate task-based computing and will be the most significant update to the Windows interface since Windows 95. The design attempts to bring a simple, colorful and clean look to the desktop, while also making the PC easier and more intuitive to use. Focused on enhancing the user experience, these improvements are the result of significant customer feedback, research and development.

Windows XP is also designed to extend the power of the PC across devices, digital media and Web services to provide new, richer experiences for users. Microsoft demonstrated examples of these rich user experiences, such as the ability for anyone who has a digital camera or scanner to copy pictures to their PC, view, print and upload them. Windows XP also attempts to enhance the digital music experience, making it easy for users to build their digital music collections quickly, and take their music with them on popular portable music devices.

Windows XP also continues in the footsteps of Windows ME with users to find and view movies from the Web, edit and share their own home movies, and play back DVDs. Manipulating static images will also be simpler. Such tasks will no longer require navigating clusters of drop-down menus at the top of the screen. Common tasks are shown on the left and change as users switch tasks or programs. For instance, when viewing a photo, XP will automatically show options to print, e-mail or post it to the Web.

One totally new feature is the ability to allow one XP user to take control of another XP user's computer through the Internet, something Gates said would make it a snap to diagnose and fix problems. To help thwart security risks like someone gaining control of a computer without permission, the feature uses encrypted signals and requires the target to give permission several times before access is granted.

Meanwhile, Windows 2000 sales have ramped up only slowly. Being a business product, it has seen a more gradual roll-out as companies take time to evaluate it and draw up a budget and installation plans.

Even before the official launch of Windows XP, scheduled for the second half of this year, Microsoft claims that industry leaders are rallying behind the new operating system. Several personal computer manufacturers are already signed up. "The combination of Windows XP and Compaq PCs will give our customers a much richer computing experience, whether they're at home, at work or on the road," said Michael D. Capellas, Compaq's chairman and chief executive officer. "Compaq and Microsoft share a common vision focused on making it easier customers to access the information, content and entertainment they want -- when, where and how they want it. Windows XP is an innovative product that will help make this vision a reality. Compaq has worked closely with Microsoft to bring Windows XP to life, and we are committed to making it available on our business and consumer PCs as soon as it is released."

In addition, retailers are already anticipating strong demand for a wide array of products that will work with Windows XP, including new PCs, software, hardware and devices. Many of these retailers are planning to offer products that will ensure a smooth transition to Windows XP when it becomes available later this year.

"Circuit City is making a strong commitment to our consumers," said W. Alan McCollough, president and chief executive officer of Circuit City. "Beginning today, we're going to ensure that all Windows-based PCs we sell are configured to allow for an easy transition to Windows XP. When it's available, all the Windows-based PCs we sell will be running Windows XP. We're also working closely with Microsoft to help our hardware and software partners be ready for this important launch, and ensure today's products are ready for Windows XP."

Windows XP will be made available in two versions: Windows XP Professional for business users and Windows XP Home Edition for home users. The second beta version of Windows XP is scheduled for release in the next month to a select group of Microsoft customers, partners and beta testers. The final version of Windows XP is scheduled to be generally available in the second half of 2001.