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updated 3/22/2007 4:43:58 PM ET 2007-03-22T20:43:58

At least two federal government agencies are refusing to upgrade their computers with Microsoft Corp.'s Windows Vista operating system, citing concern over costs and compatibility issues.

In a Jan. 19 memo to staff, Dan Mintz, the Transportation Department's chief information officer, imposed an "indefinite moratorium" on upgrading desktop and laptop computers with the new operating system, Office 2007 and Internet Explorer 7.

(MSNBC.com is a Microsoft-NBC Universal joint venture.)

Mintz wrote that there is "no compelling technical or business case" to upgrade to the new products and specific reasons not to upgrade.

He cited hardware, software and labor costs, compatibility issues with current applications and limited funding. He also wrote technology staff will be busy with the agency's move to a new headquarters.

The memo says the software only may be acquired for testing purposes and only with the CIO's approval.

Microsoft did not return calls seeking comment.

The details of Mintz's memo were first reported earlier this month by InformationWeek, a technology trade publication.

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