Microsoft Acquires Winternals Software

REDMOND, Wash. — July 18, 2006 — Microsoft Corp. today announced the acquisition of Winternals Software LP, a privately held company based in Austin, Texas, that provides Windows®-based enterprises with systems recovery and data protection solutions in addition to offering a freeware tools Web site called Sysinternals. The addition of Winternals is a significant advance in Microsoft’s promise to lower customers’ total cost of ownership of the Microsoft® Windows platform. Customers will be able to continue building on Sysinternals’ advanced utilities, technical information and source code for utilities related to Windows. Financial terms of the acquisition were not disclosed.

Winternals was established in 1996 by Mark Russinovich and Bryce Cogswell, who are recognized industry leaders in the areas of operating system design and architecture. Russinovich will join the Microsoft Platforms & Services Division as a technical fellow, working with numerous technology teams across Microsoft, and Cogswell will join the Windows Component Platform Team in the role of software architect.

“I’ve had my eye on Mark for some time,” said Jim Allchin, co-president of the Platforms & Services Division at Microsoft. “The work he and Bryce have completed in system recovery and data protection illustrates the depth of thinking and skill they will bring to future versions of Windows. The addition of their deep kernel-level expertise to our existing strong talent will help provide us with the edge we need to continue to raise the quality and functionality bar for Windows on both the client and the server.”

“I witness regularly the profound impact that even a few lines of code can have in a world of globally connected systems,” said Russinovich. “The technologies that sustain and enhance business, health, commerce and entertainment are emerging from platforms that Microsoft creates. I look forward to bringing my experience in designing operating system technologies to Microsoft. I’m excited to broaden the reach and impact on Windows and Microsoft customers.”

Winternals products support IT professionals in numerous ways, providing intelligent enterprise recovery solutions, network defragmentation solutions and powerful system tools, all focused on reducing the total cost of ownership for Microsoft-based businesses. Sysinternals enjoys a strong and active community of systems administrators and support personnel, averaging about a million visitors per month.

Microsoft is evaluating how the Winternals products and technologies can be integrated within Microsoft offerings to maximize customer value.

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

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