Microsoft Announces Share Repurchase Program

REDMOND, Wash., Aug. 7, 2000 — Microsoft Corp. announced that its board of directors has approved a share repurchase program, effective today. The company’s repurchase program provides shares for issuance to employees under the company’s stock option and stock purchase plans.

The number of shares to be purchased during fiscal 2001 will be based on several factors, primarily the level of employee stock option exercises. The number of shares to be repurchased may vary from the amounts purchased in previous years. Purchases may be made in the open market or in privately negotiated transactions from time to time at management’s discretion. Microsoft also may buy or sell other Microsoft securities in conjunction with the repurchase program, including derivative securities.

This press release contains statements that are forward-looking. These statements are based on current expectations that are subject to risks and uncertainties. Actual results will vary because of factors such as PC shipment growth; technological shifts; customer demand; competitive products and pricing; product mix; product ship schedules; life cycles; terms and conditions; litigation; and other issues discussed in the company’s Form 10-K and other SEC filings.

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 is a registered trademark of Microsoft Corp. in the United States and/or other countries. The names of actual companies and products mentioned herein may be trademarks of their respective owners.

For more information, financial analysts only:

Carla Lewis, Senior Director, Investor Relations (425) 936-3703

For more information, press only:

Caroline Boren, Waggener Edstrom, (425) 637-9097, carolineb@wagged.com

Katy Fonner, Waggener Edstrom, (503) 443-7000, kfonner@wagged.com

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. Shareholder and financial information is available at http://www.microsoft.com/msft/ .

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