Reuters(UK) May 8, 2003 By Staff LISBON, May 9 (Reuters) - Portugal will be the second European market for high-tech mobile phones that use Microsoft Corp (MSFT.O) software in a project with state energy company Galpenergia and Portugal Telecom (PT) (PTCO.IN), Galpenergia said on Friday. Portugal will have access to the so-called "smart phones" that use Microsoft's Windows CE 3.0 software. French communications company Orange (ORA.PA) launched the device in Europe in November 2002. Microsoft Chief Executive Steve Ballmer will be in Lisbon on Friday for a ceremony marking the public start of the smart phone with Galpenergia, the state oil and natural gas company, and PT's mobile unit TMN, Galpenergia said in a statement. "The fact that this launch unites two of the biggest Portuguese companies, leaders in their markets, eases the rapid introduction of the concept in the Portuguese market," the statement said. Microsoft's smart phone software is made for phones that can also handle text and images. Its applications include Microsoft Outlook for handling e-mails and text messages and Internet Explorer for online access. Microsoft, the world's biggest software maker, is moving into phone software as it seeks new markets outside the saturated personal computer sector. Sales of the Smartphone Galp-TMN will begin in July. The phones will be sold through TMN stores and at Galp service stations. Portugal, one of the poorest countries in the 15-nation European Union, has one of the highest rates of mobile phone use in Europe. About 85 percent of Portugal's 10 million people use mobile phones. Portugal was the site of the commercial launch of Microsoft's interactive TV software in June 2001. Subscriptions have fallen short of initial expectations.