To expand upon Steven Penny's PowerShell solution, you can incorporate it into a batch file by calling powershell.exe
like this:
powershell.exe -nologo -noprofile -command "& { Add-Type -A 'System.IO.Compression.FileSystem'; [IO.Compression.ZipFile]::ExtractToDirectory('foo.zip', 'bar'); }"
As Ivan Shilo said, this won't work with PowerShell 2, it requires PowerShell 3 or greater and .NET Framework 4.
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