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The update addresses a critical security flaw (MS08-014) in Excel that could allow remote code execution.

It also provides performance improvements and bug fixes across the entire Office suite. These include a fix for handling of layered .psd (Photoshop) files; improved reliability when copying content between Office 2008 and 2004 and improved reliability when saving to an SMB network volume. Fixes specific to the individual Office applications address

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problems with printing, calendars, AppleScript and Windows Mobile support for PowerPoint presentations.

Microsoft has also addressed Exchange Server support in Entourage, with overall improvement to synchronisation support, including removing attachments from Exchange Server messages and synchronising to the server, as well as support for editing the contents of Exchange Server messages via AppleScript and synchronising the changes to the server.

For a complete list see the release notes.

The Microsoft Office 2008 for Mac Service Pack 1 (12.1.0) also includes all the fixes from the Microsoft Office 2008 for Mac 12.0.1 Update.