New features in R2, a variant of Windows Server 2003 optimized for smaller companies, include a "Green Check" of software health to help customers protect vital business data, automated patch and update services for all Microsoft Update supported products in the network and a 75GB mailbox limit.

The Standard Edition will be available for an estimated retail price of US$599 while the Premium Edition lists for $1,299. Microsoft said the Premium Edition price has been cut 13 percent from the previous version of Windows Small Business Server 2003 Premium Edition.

R2 will also be pre-installed on servers available from Dell Inc., Fujitsu Siemens Computers, Gateway Inc., Hewlett-Packard Co. and IBM, and will be available in 18 languages.