MSN Achieves Record Quarterly Growth With More Than 1.2 Million New Subscriptions; Total U.S. Subscriptions Surpass 8 Million

REDMOND, Wash., Jan. 15, 2002 — The MSN® network of Internet services today announced that MSN achieved record subscription growth in the United States during the past quarter, adding more than 1.2 million new subscriptions, with more than 7.7 million MSN Internet Access subscribers. For the first time, quarterly new-subscriber growth for MSN surpassed that of AOL during the same period in the United States.

“We are very excited about our phenomenal quarter and the number of consumers that are choosing MSN over AOL,”
said Yusuf Mehdi, vice president of MSN at Microsoft Corp.
“Our recent success indicates that we delivered an excellent service with MSN 7 and that we are offering useful and compelling services that consumers want.”

The launch of MSN 7 in October 2001 drove significant subscription growth for MSN. MSN 7 was designed to give consumers around the world the most useful Internet experience, with fast access to the power of the Web through innovative products, content from industry leaders and advanced Web services, including the industry-leading MSN Messenger Service, the MSN Hotmail® Web-based e-mail service and MSN Search.

MSN has several special promotional offers available for consumers interested in the best online experience, including an MSN Broadband offer worth nearly $600, with a one-year subscription. MSN Broadband delivers exclusive IntelliSpeed™
technology from MSN, which enables easy DSL installation, optimized performance and reliability, and extremely fast connectivity, as well as top broadband-optimized software, services and content. MSN Broadband is available in 33 markets today and will be offered to more than 90 percent of DSL-capable households in the United States by the end of the first quarter of 2002. New MSN Broadband customers can receive two months of free* MSN Broadband Internet Access, free activation and a free installation kit, a total value of nearly $600. MSN also has several promotional offers for MSN dial-up access, which is available nationwide. Additional information is available at .

About MSN

MSN attracts more than 270 million unique users worldwide per month. Available in 34 markets and 18 languages, MSN is a world leader in delivering Web services to consumers and digital marketing solutions to businesses worldwide. The most useful and innovative online service today, MSN brings consumers everything they need from the Web to make the most of their time online. MSN is located on the Web at . MSN worldwide sites are located at .

About Microsoft

Founded in 1975, Microsoft (Nasdaq
) 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.

* Not available in all areas. Program is only available to new MSN Internet Access subscribers. If for any reason the user’s subscription is terminated after activation and before the user has paid for twelve (12) months of broadband service, then the user will be charged a termination fee of $150. Special equipment may be required. Actual speeds over DSL lines will vary depending on several factors, including location of the user’s home, computer performance and configuration, network or Internet congestion, Web sites accessed, and phone line condition. Speed of service, uninterrupted and error-free service is not guaranteed. Some customers may require professional installation that may be obtained for an extra charge. In addition, the user must agree to the subscriber agreement to access the service. A valid major credit card may be required. If for any reason the user’s subscription is terminated before the user has paid for 24 months of broadband service, then the user will be required to return the DSL modem provided to the user. If the user does not return the modem, the user will be charged $150 plus applicable taxes. The current price for the unlimited MSN Broadband Internet Access Plan will be automatically charged to the user beginning the third month following the user’s activation date and thereafter until the user cancels the account or selects an alternative plan. User must be 18 years old or older. MSN Broadband Internet Access is available only to users of the Windows® 98 or later operating systems. MSN Internet Access is available only for personal, noncommercial use. Offer expires Feb. 10, 2002.

Microsoft, MSN, Hotmail, IntelliSpeed and Windows are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

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

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft® Web site at on Microsoft’s corporate information pages.

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