REDMOND, Wash.—Microsoft's MSN unit is getting new search, social-networking, Web e-mail and advertising-platform products ready to roll in the coming months, according to company officials.

MSN officials demonstrated a few of these future products and technologies during a session titled "Winning in Internet Services" held during the company's annual financial analyst meeting here Thursday.

Officials demonstrated a beta version of a new mail client, as well as the adCenter platform, also in beta, that Microsoft is hoping to use to attract potential MSN and Microsoft.com advertisers.

They also put through their paces a social-networking app tentatively called "Friends of Friends," as well as an MSN Virtual Earth search enhancement called "Eagle Eye," due out this fall, that is designed to give a panoramic, very fine-grained zoom view.

Microsoft believes it finally is gaining on Google and other Internet service competitors in some key areas, according to Yusuf Mehdi, MSN senior vice president. Mehdi said Microsoft has significantly narrowed the gap between itself and Google, Yahoo and other players in this space, thanks to advances in algorithmic search, Hotmail, MSN Messenger and online advertising.

"Our ability to enter, differentiate and compete has never been stronger," Mehdi told the Wall Street analysts and media representatives who attended the analyst meeting.

Mehdi also told attendees that Microsoft is committed to investing to the extent needed in people, software innovation and capital expenditures "to take the lead in Internet services."

In fiscal 2005, which ended for Microsoft on June 30, the MSN unit shipped a first version of its algorithmic MSN Search engine, launched Windows desktop search and delivered the MSN Spaces blogging platform, which currently hosts 18.5 million blogs and supports 55 million unique users monthly.

The unit also shipped new versions of the MSN Messenger consumer instant-messaging product, as well as of Microsoft's current Hotmail Web e-mail product.

In spite of the advertising revenues it decided to forgo in order to clean up its paid-inclusion search story, MSN still garnered $1.39 billion in advertising revenues, Mehdi said.

"We are going to attempt to move today's search market from links to answers," Mehdi told analyst-day attendees. He said MSN has plans to improve its algorithmic search relevance; broaden its content selection and build out search as a platform.

Microsoft also is looking to build on its back-end account-space clearinghouse that maintains a database of MSN buddies and presence information—eight million contacts in total.

The first technology that Microsoft will deliver that makes use of this technology is a social-networking app that company officials are describing as "Friends of Friends," an application that looks like "Linked In" or "Friendster." Microsoft is expecting to launch Friends of Friends this fall.

Blake Irving, corporate vice president in charge of MSN Communication Services, demonstrated for meeting attendees a new version of MSN Webmail that he described as "the future of Webmail for Microsoft."

Irving said the new mail program will be compatible with Hotmail, will include built-in security features such as phishing protection, and will be "wicked fast and easy to use." MSN is basing the new mail program on the Ajax Web programming model, he said.

Irving did not offer any timing or availability information on the new mail program. It is not clear whether the program is the rumored "Kahuna" product that the BetaNews site described earlier this month.

Irving also showed a glimpse of a new MSN Messenger user interface that is in the works. That interface would add some new icons, including one that would show users whether or not their buddies are running Windows OneCare, which is Microsoft's forthcoming hosted security services offering for SMB (small and midsized business) users. Such an icon would allow buddies to have confidence that those with whom they are communicating are virus- and malware-free, Irving said.

Again, Irving did not discuss when or how MSN is planning to roll out the new MSN Messenger interface. It's not clear if that interface will be part of MSN Messenger 7.5, which is in beta at the moment.

In fiscal year 2006, Mehdi said, MSN will deliver more innovation in algorithmic search relevancy. It will launch "our best in class ad platform." It will deliver more communications services and it will enhance Windows and Office "experiences," he said.