• August 3, 2007

Microsoft Corp. will begin offering a free ad-supported version for its basic version of Microsoft Works spreadsheet and word processing software as part of a test program with computer manufacturers, the company said earlier this week.

The plan is to pre-install Works SE 9.0 on computers sold in select countries and display advertising stored in the cache on the computer. The software typically retails for $39.99. When software users connect to the Internet, the cache of ads refreshes.

Microsoft plans to roll out the advertising-supported version within a few months. The company declined to disclose the PC makers or the test markets for the launch. The Works application includes a word processor, calendar, dictionary, project organizer and spreadsheet.

Microsoft made its interest in advertising known last year when it bought in-video game ad network Massive. Since then, the Redmond, Wash. company has acquired exchange platform AdECN, ad-network aQuantive, European mobile ad company ScreenTonic, and others.

--Laurie Sullivan