Autodesk and Microsoft Will Cross-License Patent Holdings

SAN RAFAEL, Calif., and REDMOND, Wash., Dec. 16, 2004 — Autodesk Inc. and Microsoft Corp. today announced a cross-licensing agreement that allows increased access to each company’s respective patent portfolios. The agreement reflects expansion of the long-standing partnership between Autodesk and Microsoft and will enable each company to broaden its product offerings and deliver more comprehensive, cost-effective solutions. Through this arrangement, Autodesk and Microsoft will promote the exchange and implementation of patented technologies in many areas, including data management, collaboration, design data management, digital effects, digital rights management, project management, computer-aided design and location-based services. Terms of the agreement were not disclosed.

“Autodesk is committed to pursuing technologies that improve the products and services we provide to our customers through R & D, joint ventures and alliances such as this agreement with Microsoft,” said Marcia Sterling, senior vice president, general counsel and secretary at Autodesk. “Many Microsoft and Autodesk products are already tightly integrated, we share many joint customers, and we’re pleased to expand this mutually beneficial relationship.”

“This cross-license is a great benefit for Microsoft and Autodesk customers, extending the reach of our respective innovations through the licensing of patents on commercially reasonable terms,” said Brad Smith, general counsel for Microsoft. “Intellectual property licensing is a cornerstone of today’s software industry and is essential for the development of comprehensive technology solutions.”

This licensing agreement with Autodesk continues Microsoft’s ongoing commitment to expanding its intellectual property (IP) licensing efforts, making it easier for others to license the company’s growing IP portfolio based on its significant research and development (R & D) efforts. The company maintains a growing worldwide patent portfolio that includes several thousand issued and pending U.S. patents. Microsoft has established a solid record of collaborating with other technology innovators and has entered into cross-licensing agreements with several leading technology companies, including Cisco Systems Inc., Siemens AG and SAP AG.

About Autodesk

Autodesk Inc. (Nasdaq “ADSK”) is wholly focused on ensuring that great ideas are turned into reality. With 6 million users, Autodesk is the world’s leading software and services company for the building, manufacturing, infrastructure, digital media and wireless data services fields. Autodesk’s solutions help customers create, manage and share their data and digital assets more effectively. As a result, customers turn ideas into competitive advantage by becoming more productive, streamlining project efficiency, and maximizing profits.

Founded in 1982, Autodesk is headquartered in San Rafael, Calif. For additional information about Autodesk, please visit .

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Autodesk, AutoCAD, Autodesk MapGuide and Discreet are either registered trademarks or trademarks of Autodesk Inc. in the USA and/or other countries.

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

(c) Copyright 2004 Autodesk Inc. and Microsoft Corp. All rights reserved.

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

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