A representative from Microsoft confirmed reports that the company has begun beta testing upgrades to Windows 98, including the first service pack (SP1) and a new full release, known as "OSR," that will eventually be given to hardware manufacturers.

Windows 98 SP1, due in February 1999, will include support for Device Bay hardware, additional modem driver support, Universal Serial Bus modem support, Wake-On LAN functionality, ATM networking, WebTV improvements, and Distributed Component Object Model (DCOM) 98. It will also include Internet Explorer 4.01 SP2, the representative said