Microsoft Realigns Business Structure, Belluzzo to Transition

REDMOND, Wash., April 3, 2002 — Microsoft Corp. today announced changes to its organizational structure.

Under the new structure, the leaders of each of the company’s core businesses — Windows® Client, Knowledge Worker, Server & Tools, Business Solutions, CE/Mobility, MSN®
and Home & Entertainment — will have comprehensive operational and financial responsibility and greater accountability. Steve Ballmer and the Senior Leadership Team will also drive a set of shared priorities across these businesses to ensure excellent integrated solutions for customers.

As part of these changes, Rick Belluzzo will transition out of his role as president and chief operating officer on May 1, although he will continue to work at the company through September to ensure a smooth transition.

“Rick has worked closely with me analyzing the company’s structure to determine how we could improve our internal processes and maximize opportunities for growth,” Ballmer said. “We realized we needed to give our core leaders deeper control and accountability in the way they run their businesses, while at the same time ensuring strong communication and collaboration across the business units. This is the right decision for Rick, but the company will certainly miss his leadership and experience.”

“Given where Steve and I knew we needed to take the business, I decided it was the right time to pursue my goal of leading my own company,” Belluzzo said. “I’m proud of what I’ve accomplished at Microsoft, and I will miss the great people I’ve worked with over the past several years.”

“Rick has made important contributions throughout his tenure here at Microsoft,” said Bill Gates, chairman and chief software architect at Microsoft. “His leadership on improving internal business systems and his role in the development of key product initiatives including .NET, MSN and Xbox (TM) were very significant contributions.”

Belluzzo, 48, joined Microsoft in September 1999 as a group vice president and quickly rose to the rank of president. As president and COO, Belluzzo has been responsible for overseeing worldwide sales and marketing, directing business operations including HR, Finance and Licensing, and overseeing Microsoft’s games and TV platform efforts.

Among his many accomplishments at Microsoft, Belluzzo helped focus the company’s diverse consumer activities, incubate key initiatives such as Xbox and .NET, and launch MSN on a much more successful course. He also drove a series of positive changes in Microsoft’s marketing approach, built a number of strong internal processes, and helped move the company to the business model now being implemented.

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