Microsoft Increases Annual Dividend to $0.16

REDMOND, Wash., Sept. 12, 2003 — Microsoft Corp. today announced that its Board of Directors declared its second annual dividend. The Board approved an increase in the annual dividend to $0.16 per share in Fiscal Year 2004 from the $0.08 per share declared in Fiscal Year 2003. The dividend is payable November 7, 2003, to shareholders of record at the close of business on October 17, 2003.

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.

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