UPDATE 1-Microsoft picks Czech Republic for mobile centre

(Adds quotes from news conference, details)

PRAGUE, Oct 31 (Reuters) - Microsoft Corp. <MSFT.O> is setting up a European business support centre for mobile technologies in the Czech Republic, the U.S.-based software company said on Tuesday.

Microsoft said the new centre would be the company's first of its kind in the world and would provide services to leading European mobile phone providers and manufacturers of mobile equipment from January 2007.

"Should this model prove successful, we will follow it also in other regions on other continents," Jan Sebek, the centre's newly-appointed director, told a news conference.

Microsoft gave no details about the size of the planned investment but added it would employ 15 workers from the start and would hire more engineers depending on demand for support services and development at the centre.

The Czech Republic, a top central European destination for foreign investment, has sought to attract more investment in the high-tech industries after luring scores of foreign manufacturers in the car-making and other industrial sectors.

Microsoft, the world's biggest software company, said the country's favourable geographic position in the centre of Europe played a key role in its decision to base the support unit in the Czech capital Prague.

The company said the Czech Republic was one of the world's most developed markets in mobile and information technologies, which along with the availability of skilled engineers was its key attraction.

"Central and Eastern Europe is an important and fast-growing region and the ideal place for an expansion of the technical support network," Jan Muehlfeit, Vice-President for Strategy EMEA, was quoted as saying in a statement. ((Reporting by Jan Korselt; Writing by Marek Petrus; Editing by Rory Channing; Reuters Messaging: rm://marek.petrus.reuters.com@reuters.net; e-mail: prague.newsroom@reuters.com or marek.petrus@reuters.com; Tel: +420 224 190 477))

Keywords: TECH CZECH MICROSOFT