Microsoft Statement on Korean Fair Trade Commission Decision

REDMOND, Wash. — Dec. 7, 2005 —Microsoft today issued the following statement upon being advised of the Korean Fair Trade Commission’s decision in its ongoing investigation of Microsoft under the Korean Fair Trade Law. We disagree with the Commission’s decision and strongly believe that Microsoft has operated within Korean law.

Microsoft’s integration of instant messaging and media player functionality in Windows has created great value for consumers and opportunities for Korean developers who write applications that run on Windows and create devices for Windows.

Competition in these technologies in Korea has been, and remains, vibrant with many new Korean companies successfully offering digital media and instant messaging choices for Korean consumers. This decision could have the effect of chilling innovation in Korea.

We intend to appeal this decision because it is inconsistent with Korean law. Nevertheless, we will continue developing products for Korean consumers in a way that complies with all laws and is pro-competitive. Microsoft has long felt that Korea is an important center of innovation for our industry. We remain committed to Korea and look forward to continuing to serve the interests of Korean consumers as well as the rest of the Korean information technology industry.

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