BEIJING -- Microsoft Corp. has agreed to help China's Ministry of Information Industry (MII) build several research and development centers in an effort to boost economic development in China's rural areas.

Under the terms of a memorandum of understanding that Microsoft CEO Steve Ballmer signed at a press conference in Beijing last week, the software vendor will spend 250 million renminbi (US$31.2 million) over the next five years to fund the construction of the facilities. The research centers, to be run jointly by Microsoft and the MII, will develop new .Net technology and applications, the company said.

In addition, Microsoft agreed to train more than 70,000 new software engineers through a combination of classroom instruction and distance learning. The new deal follows Microsoft's announcement last month that it would spend $900 million over the next five years on purchases from and investments in Chinese IT vendors.

Defense agency plans to sell used IT gear

SYDNEY -- Australia's Department of Defense is conducting a winner-take-all auction to sell off aging computer and network devices that are filling one of its warehouses.