MICROSOFT ACQUIRES VERMEER TECHNOLOGIES INC.

Critically Acclaimed Visual Client-Server Web Publishing Tool to Complement
Internet Offerings From Microsoft Desktop Applications Division

REDMOND, WASH. - JAN. 16, 1996 - Microsoft Corp. today announced the
acquisition of Vermeer Technologies Inc., a pioneer of visual,
standards-based Web publishing tools based in Cambridge, Mass. Vermeer's
flagship software application, FrontPage, is a critically acclaimed tool
for easily creating and managing rich Web documents without programming.
FrontPage will become a key component of Microsoft's strategy to provide a
full range of tools that put the power of Web publishing, for both the
Internet and intranets, in the hands of the broadest range of computer
users.

"Millions of productivity-applications users want an easier way to
participate in the excitement and enhanced productivity of the Web," said
Bill Gates, chairman and CEO of Microsoft. "Vermeer's FrontPage fills the
wide gap between simple HTML page editors and high-end, professional Web
publishing systems available today."

"Access to Microsoft's resources and channel partnerships will allow us to
realize our vision of 'Webtop publishing' on a broader scale," said John
Mandile, Vermeer's president and chief executive officer. Vermeer coined
the phrase "Webtop publishing" to define the process of creating Web sites
using its innovative visual tools.

HIGH-QUALITY WEB PUBLISHING

FrontPage provides users with the fastest and easiest way to develop and
maintain high-quality Web sites without programming. Designed for both
individual users and collaborative work environments, FrontPage's
client-server architecture supports authoring, scripting and Web- site
management from a user's desktop, across a corporate LAN, or over the
Internet. The client portion of the software, which is currently available
for WindowsR operating system-based platforms and will be available for
the MacintoshR later this year, includes the following features:

* FrontPage Editor for creating and editing HTML pages, with WYSIWYG
  support for many of the latest HTML formatting extensions
* FrontPage Explorer for graphically visualizing and managing a
  complex Web site composed of many documents and images
* WebBots that implement the most common Web server functionality,
  such as text searches, feedback forms, and threaded discussion
  forums, without any programming or complex setup
* Wizards and templates for easily creating personal and business
  Web pages in a task-oriented manner
* To Do List for tracking the status of authoring and management
  tasks to be completed on the site, a critical task for a
  collaborative Web document

The server portion of the product, known as Server Extensions, is
implemented using the open industry standard Common Gateway Interface
(CGI) and can run on the Windows 95 or Windows NT operating systems and
popular versions of UNIX. These extensions support Internet server
products such as NetSite from Netscape Communications Corp. and Microsoft
Internet Information Server, which is currently in beta and is scheduled
to ship in the first quarter of 1996. To allow users to get their Web
sites up and running right out of the box, FrontPage includes an
easy-to-set-up Personal Web Server.

"WEB DOCUMENTS" STRATEGY

Allowing users to create and edit Web documents easily is a key aspect of
Microsoft's desktop applications strategy. Word processing and spreadsheet
documents are the most common daily business communication formats among
users today; Microsoft believes this same broad category of users will
author web documents for corporate intranets or the Internet in the near
future.

FrontPage is Microsoft's key offering in this burgeoning market. FrontPage
extends the concept of document creation to include a variety of document
types such as HTML or those created with Microsoft Word, Microsoft Excel,
and the Microsoft PowerPoint presentation graphics program, connected by
hyperlinks on both corporate LANs or the Internet. FrontPage was designed
for the end user and business professional, with a user interface
consistent with Microsoft Office.

With this announcement, Microsoft now provides a complete range of tools
for users creating Web documents:

In December, Microsoft Office announced a line of Office Internet
Assistants that make it easy for users to author standalone HTML pages
using their familiar Office applications such as Microsoft Word, Microsoft
Excel and Microsoft PowerPoint.

FrontPage builds on this technology by providing the easiest way for end
users, business professionals and Web-site managers to publish and manage
high-quality Web sites without programming.

Documents created with Microsoft Office and Office Internet Assistants can
be incorporated easily into a FrontPage Web document.

For professional publishers designing high-end solutions, Internet Studio
provides a sophisticated publishing system to create, publish and manage
Web sites that can include integrated programming and interactive
multimedia.

DESKTOP APPLICATIONS DIVISION CREATES NEW PRODUCT UNIT

Over the next few months, the FrontPage development team will move to
Microsoft headquarters in Redmond, Wash., and become the core of the newly
established Web authoring product unit within the desktop applications
division. This new group will be managed by Chris Peters, currently vice
president of the Office product unit overseeing the design and development
of Microsoft Office. A 14-year veteran at Microsoft, Peters was formerly
general manager of the Word business unit and led the development of
Microsoft Excel for five years. "We are incredibly impressed with the
talent at Vermeer," Peters said. "They're smart people with great
development talent and a deep understanding of what it takes to create
high-quality, easy- to-use Web software. We're also excited about how well
FrontPage works with our Office applications today and about the
possibilities for even more integration in the future." FrontPage will
continue to be available as a standalone product directly from Vermeer
during the transition period, and through Microsoft's channel partners in
the future.

Founded in 1975, Microsoft (NASDAQ "MSFT") is the worldwide leader in
software for personal computers. The company offers a wide range of
products and services for business and personal use, each designed with
the mission of making it easier and more enjoyable for people to take
advantage of the full power of personal computing every day.
 
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