MICROSOFT'S ENTERTAINMENT GROUP WORKS WITH ATOMIC GAMES, CRYSTAL DYNAMICS,
RAINBOW AMERICA AND TERMINAL REALITY

Microsoft to Deliver Action, Arcade and Strategy Games

REDMOND, WASH. - JAN. 9, 1996 - Microsoft Corp. announced today it has
formed games-development relationships with Atomic Games, Crystal
Dynamics, Rainbow America and Terminal Reality. The announcement further
demonstrates Microsoft's commitment to publish games for the Microsoft
Windows 95 operating system. It comes a month after the company announced
its acquisition of the Bruce Artwick Organization of Champaign, Ill.,
developers of the best-selling game software title, Microsoft Flight
SimulatorR.

Atomic Games of Houston, Texas, well known for its development of the
award-winning V for Victory and Worlds at War strategy games, will work
with Microsoft to bring the much-anticipated, real-time World War II
strategy game Close Combat to market. Close Combat will be Microsoft's
first entry into strategy gaming and is scheduled to be available on
CD-ROM next summer for both the Windows 95 and MacintoshR platforms.

Additionally, Microsoft and Palo Alto, Calif.-based Crystal Dynamics, a
leading software developer for next-generation gaming platforms such as
SegaR Saturn and SONYR PlayStation game consoles, plan to bring the No. 1
selling title for the 3DO gaming platform, GEX, to Windows 95. GEX, a
side-scrolling action game that features a wisecracking gecko named GEX,
received the 1994 Editor's Gold Choice Award from Electronic Gaming
Monthly magazine and Game Fan magazine's Best Action Platform Game for
1994.

Phoenix, Ariz.-based Rainbow America, developer of the recently released
title The Hive, will work with Microsoft to develop an underwater action
game for Windows 95-based PCs. As part of product development, Microsoft
will benefit from Rainbow America's work with TRG3, artists experienced in
TV-quality, computer-generated effects that produced visuals for such hits
as Star Trek: The Voyager, and SeaQuest.

Continuing its relationship with Terminal Reality Inc. (TRI), which
developed the fast-paced space-action arcade game Microsoft Fury3,
Microsoft and TRI will produce several titles, including an off-road
driving simulation. Additionally, Microsoft and TRI look forward to
developing future titles showcasing the speed, ease and excitement of
gaming under Windows 95.

"We are very pleased to build our games portfolio by forming relationships
with proven games developers," said Tony Garcia, manager of the
entertainment business unit at Microsoft. "We are committed to bringing
exciting new titles to market and are thrilled to have these talented
games developers as partners."

The Microsoft entertainment business unit portfolio includes the
best-selling entertainment title Flight Simulator; Fury, a space- age
action game for WindowsR; and Golf 2.0 on CD-ROM, the newest golf title
with multiplayer capability. The entertainment business unit has also
publicly announced development partnerships with games developers and
organizations such as Access Software, McDonnell Douglas and Larry
Holland.

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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