Microsoft Statement on U.S. Court of Appeals Ruling

REDMOND, Wash., June 30, 2004 — The U.S. Court of Appeals for the District of Columbia Circuit Wednesday issued a unanimous, six-judge ruling affirming Microsoft Corp.s settlement and final judgment with the U.S. Department of Justice and 18 state attorneys general.

“Of all the steps weve taken over the past two years, this is the most important step in resolving our legal issues and moving forward. Todays unanimous decision sends a clear and emphatic message that the settlement reached two years ago is a fair and appropriate resolution of these issues, said Brad Smith, senior vice president and general counsel at Microsoft.

Last November, the Court of Appeals heard appeals to the consent decree and final judgments in the Microsoft v. U.S. antitrust case brought by the Commonwealth of Massachusetts, the Computer and Communications Industry Association, and the Software and Information Industry Association.

“At the heart of this case was the question of whether Microsoft should be required to remove software code from our products, or provide multiple versions of our products with certain features removed. This unanimous decision clearly states that removing code would be a huge step backwards for consumers and for the industry as a whole, Smith noted.

“We remain 100 percent committed to fulfilling our obligations under the settlement and earning the trust of our customers and the industry,” Smith said. “We are excited about the potential our industry has to bring new innovation into peoples lives and help them realize their full potential.”

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