In a move to shrink the digital divide and secure Microsoft's future market dominance MS announced several programs today.

One of them is the Microsoft Student Innovation Suite, which is a software package for governments purchasing and giving Windows-based PCs to primary and secondary students for their personal use at home and for schoolwork. The education suite includes Windows XP Starter Edition, Microsoft Office Home and Student 2007, Microsoft Math 3.0, Learning Essentials 2.0 for Microsoft Office, and Windows Live Mail desktop.

Microsoft will offer this suite in the second half of 2007 for $3 (U.S.) to qualifying governments that purchase and supply PCs directly to students.
Via this Microsoft press-release.