Microsoft gives Word 98 a facelift

Microsoft is to target Apple iMac owners with a souped-up edition of its Word 98 software.

The product, called Word 98 Special Edition, contains added features such as clip-art images, greeting-card templates and new special effects options. Outlook Express and Internet Explorer will also be part of the package.

Microsoft said the upgrade - which will cost existing Word 98 users $99 (£65) - is designed to make home computing "fun and easy".

But Martin Brampton, chief analyst at Bloor Research, said the home market is difficult to predict, and raised doubts about whether iMac owners will upgrade. "Consumers are less bothered about fancy features, but much more price sensitive," he said.

Microsoft also said it will release Mac versions of Internet Explorer 5.0 and Outlook Express 5.0 in the autumn.