Microsoft Announces Appointment of Peter Moore As Corporate Vice President of Retail Sales and Marketing

REDMOND, Wash., Jan. 20, 2003 — Microsoft Corp. today announced that Peter Moore, video game industry veteran and former president and chief operating officer of SEGA®
of America Inc., has joined Microsoft as corporate vice president of retail sales and marketing. In this newly created position, Moore will oversee retail business in the Home and Entertainment Division, including the Xbox (TM) video game console, Xbox and PC games from Microsoft Game Studios, and home software and hardware products sold at retail, in Europe and Japan.

Moore brings to Microsoft more than 20 years of global management, marketing and sales experience. At SEGA, Moore played a critical role in repositioning the SEGA brand and product suite to achieve a leadership position in the industry. Before serving as president and chief operating officer, Moore was the senior vice president of marketing and was responsible for the successful launch of the SEGA Dreamcast (TM) video game console. Before joining SEGA, Moore was with Reebok International Ltd., where he held senior management positions including vice president of global sports and senior vice president of Reebok Footwear.

In his new role as vice president of retail sales and marketing at Microsoft, Moore will report directly to Robbie Bach, senior vice president of the Home and Entertainment Division and chief Xbox officer.

“Peter has an outstanding track record of success in the consumer market and video game industries. In addition, we look forward to utilizing his deep knowledge of foreign markets to continue to grow our retail business in Europe and Japan,” Bach said. “In Europe, where we have made enormous progress, particularly with the Xbox business gaining the No. 2 position there, Peter will be working to maintain and accelerate that good standing. In Japan, we expect that he will contribute greatly to the work already being done there to advance the business.”

“I am excited to be joining Microsoft at a time when the company’s drive toward innovation and creativity is at the forefront of its retail and in-home strategy,” Moore said. “In particular, I look forward to applying my combined experience in global consumer sales and marketing and the interactive entertainment industry to enhance the global reach of the Xbox product line.”

Additional Management Changes in Europe

Microsoft also today announced the retirement of Sandy Duncan, regional vice president of Home and Entertainment in Europe. Duncan retires after 17 years with Microsoft, three of which were spent overseeing the retail business, including Xbox, in Europe. “Sandy leaves Microsoft on an incredibly high note,” Bach said. “Having worked with a fantastic team of people on one of the most exciting launches in history, in addition to the success of the first Xbox holiday in Europe, he can retire knowing that he helped establish Microsoft firmly as a serious player in the games industry.”

Eduardo Rosini, a 10-year Microsoft veteran currently driving product development projects at Microsoft Game Studios, has been appointed the new regional vice president managing the day-to-day activities of the division in Europe. Rosini and Duncan will work together during the next few months’ transition period. Rosini will report to directly to Moore.

Rosini has worked on Xbox since its inception, initially as a business manager working directly for Bach. He joined Microsoft in 1992 and spent seven years managing key Microsoft subsidiaries overseas, moving to Redmond, Wash., in 1999 as general manager of the Worldwide Enterprise Group. “I’m very excited for Eduardo to join the European team,” Bach said. “Building on the success of holiday 2002, he will work closely with Peter Moore to continue to fulfill our mission of bringing value to consumers through the strength of our products.”

About Xbox

Xbox ( http://www.xbox.com/) is Microsoft’s future-generation video game system that delivers the most powerful gaming experiences ever. Xbox empowers game artists by giving them the technology to fulfill their creative visions as never before, creating Xbox console games and, with the advent of the Xbox Live (TM) service, online games that blur the lines between fantasy and reality. Xbox is now available in North America, Europe, Asia and Australia.

About Microsoft Game Studios

Microsoft Game Studios is a leading worldwide publisher and developer of games for the PC, Xbox video game system and online platforms. Comprising a network of top developers, Microsoft Game Studios is committed to creating innovative and diverse game portfolios for the PC ( http://www.microsoft.com/games/), including such franchises as “Age of Empires®
,” “Flight Simulator” and “Zoo Tycoon (TM) “; Xbox ( http://www.xbox.com/), including such franchises as “Halo (TM) ,” “Project Gotham Racing (TM) ” and “NFL Fever”; and Zone.com ( http://www.zone.com/), the official games channel for the MSN®
network and home to such hits as “Bejeweled” and “OutSmart (TM) .”

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software — any time, any place and on any device.

Microsoft, Xbox, Xbox Live, Age of Empires, Zoo Tycoon, Halo, Project Gotham Racing, MSN and OutSmart are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

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. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/presspass/contactpr.asp .