The first was Pictometry International Inc. for their development of a system for capturing and analyzing aerial digital images. That system is the basis of Windows Live Local (http://local.live.com).
The second, Kirtas Technologies, was announced locally yesterday:
See the Democrat and Chronicle article for the full story.
"(October 18, 2006) — Technology giant Microsoft Corp. needed a partner for its massive digital books project and found it in a 5-year-old company in Victor.
Kirtas Technologies, which makes high-speed scanners for books and the software to edit and organize them, will be part of Microsoft's Live Book Search project. The digital books will become available early next year, Microsoft and Kirtas said Tuesday."