Microsoft Converts Preferred Shares Into Common Shares

REDMOND, Wash., Dec. 15, 1999 — Microsoft Corp. announced that its 12,519,562 shares of 2.75 percent Convertible Exchangeable Principal-Protected Preferred Shares, Series A (Series A Preferred Shares), matured today in accordance with their terms. At maturity, each Series A Preferred Share automatically converted into 1.1273 Common Shares with partial shares paid in cash. Microsoft today also paid its final quarterly dividend of $0.549 per share on its Series A Preferred Shares to holders of record on Dec. 1, 1999.

The conversion of each individual Series A Preferred Share into Common Shares was calculated using the following formula:

Maximum Series A Preferred Share Price / Current Market Price for Common Shares

The maximum Series A Preferred Share price was $102.24, as indicated in the prospectus. The
“Current Market Price”
for the Common Shares was calculated as $90.693, where
“Current Market Price”
is defined as the average closing price of the Common Shares for the 20 trading days beginning Nov. 12, 1999, and ending Dec. 10, 1999.

In December 1996, Microsoft issued $1 billion of Series A Preferred Shares. Microsoft does not currently pay a dividend on its Common Shares.

About Microsoft

Founded in 1975, Microsoft (The Nasdaq Stock Market, common
; preferred
) is the worldwide leader in software 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 is either a registered trademark or trademark of Microsoft Corp. in the United States and/or other countries.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at on Microsoft’s corporate information pages. Shareholder and financial information is available at .

Related Posts