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Microsoft Offers Anti-Spyware Program for Windows

By Reed Stevenson
SEATTLE (Reuters) - Microsoft Corp. (MSFT.O: Quote, Profile, Research)
began offering anti-spyware program downloads for Windows users on
Thursday, taking the first step in offering its own computer security
products and sending shares of security software vendors lower.

The new software, which block programs that generate unwanted pop-up
ads and secretly record a computer user's activities, is based on a
program from Giant Company Software Inc., which Microsoft acquired
last month for an undisclosed amount.

Windows AntiSpyware was launched in beta, or test, mode and is
available for download at www.microsoft.com/spyware.

The world's largest software maker also said it would begin offering a
tool next week to remove viruses and other malicious software from
computers.

Both programs are part of an effort by the Redmond, Washington-based
company to offer its own computer and Internet security software, a
threat to established security software vendors like McAfee Inc.
(MFE.N: Quote, Profile, Research) and Symantec Corp. (SYMC.O: Quote,
Profile, Research)

"There is some additional functionality that Microsoft could provide
to customers," said Gytis Barzbukas, director of product management at
Microsoft's security software business unit.

Redmond, Washington-based Microsoft is also preparing a subscription
service, code-named "A1," to provide regular updates for such
software, but Barzbukas did not say how the new security software from
Microsoft would fit within that model.

Shares in McAfee and Symantec, the two largest computer security
software vendors, fell sharply on Thursday in response to the news.
McAfee was down 5.6 percent, at $25.15 on the New York Stock Exchange,
while Symantec shares closed 7.4 percent lower at $23.18 on Nasdaq.

"When you look at the need to install all this (security) software,
its begging for a (comprehensive) solution and that really has to come
from Microsoft," said Mike Cherry, an analyst tracking security issues
at Directions on Microsoft, an independent researcher based in
Kirkland, Washington.

At the moment, most users need to buy and install anti-virus,
anti-spyware, firewall and other security software products to make
sure their desktop computers are safe from malicious programs and
hackers.

Microsoft has been working for the last three years to improve the
security and reliability of its software under its Trustworthy
Computing initiative, as more and more malicious software targets
weaknesses in Windows and other Microsoft software.

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