1. On your Active Directory Domain Controller, open a command line prompt.
2. Change to the directory that contains the Exchange ISO. For example, if the Exchange ISO is on the D drive:

c:\Winodws\system32>d:

3. Prepare the Schema

D:>Setup /PrepareSchema

4. Accept the EULA

D:>Setup /PrepareSchema /IAcceptExchangeServerLicenseTerms

5. Create the Organization Name (AcmeCo in this example). Once this completes, a folder names Microsoft Exchange Security Groups should be listed in Active Directory Users and Computers.

D:>Setup /PrepareAD /OrganizationName:AcmeCo /IAcceptExchangeServerLicenseTerms

6. Prepare the domain.

D:>Setup /PrepareAllDomains /IAcceptExchangeServerLicenseTerms