Microsoft Statement Responding to Nonsettling States’ Remedy Proposal

REDMOND, Wash., Dec. 7, 2001 — The proposed remedies submitted today by the nine holdout states are extreme and not commensurate with what is left of the case. The court of appeals decision drastically narrowed the liability issues and provides the best road map as we move forward with these remedy proceedings. The settlement we reached with the Department of Justice and nine of the plaintiff states is a fair and reasonable compromise that is good for consumers and will be good for the economy. We are committed to complying fully with the proposed decree and remain hopeful that we can resolve any outstanding issues as quickly as possible in the interest of consumers and the industry.

Microsoft is a registered trademark of Microsoft Corp. in the United States and/or other countries.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft®
Web page at http://www.microsoft.com/presspass/ on Microsoft’s corporate information pages.