MICROSOFT REALIGNS PLATFORMS GROUP

Creates Divisions to Increase Focus on Windows, the Internet and Consumer
Platforms

REDMOND, WASH. - FEB. 20, 1996 - Microsoft Corp. announced today it will
align its Platforms Group to more closely coordinate the company's
WindowsR-family strategy and to concentrate on developing complementary
products and technologies for the Internet. The Platforms Group currently
comprises four divisions: Business Systems, Consumer Systems, Developer,
and Personal Systems. These four divisions will be realigned into three
divisions: the Desktop and Business Systems Division, the Internet
Platform and Tools Division, and the Consumer Platforms Division.

"The mission of Microsoft's Platforms Group is to provide our customers
with operating system products, server products and tools for the PC and
the Internet," said Paul Maritz, Group Vice President of the Platforms
Group. "Our customers want the best of both worlds. The new organization
will provide enhanced focus on our core Windows-based business, while
helping us capitalize on the substantial new opportunities offered by the
Internet."

The Consumer Platforms Division will both provide systems solutions for
non-PC consumer devices and address opportunities in the public midband
and broadband networking area.

DESKTOP AND BUSINESS SYSTEMS DIVISION

The Desktop and Business Systems Division will be headed by Senior Vice
President Jim Allchin and will have overall responsibility for the
MicrosoftR Windows product family. This division will release future
versions of the Windows family of operating systems: WindowsR 95, Windows
NT Workstation and Windows NT Server. It will also continue building the
infrastructure for distributed computing for large and small businesses
through development of the Microsoft BackOffice suite of server
applications.

"We are committed to delivering a complete range of Windows-based products
for general and business users and to addressing the needs of businesses
with our Microsoft BackOffice product line," said Allchin. "We believe
this new organization will allow us to integrate our product line even
more tightly."

INTERNET PLATFORM AND TOOLS DIVISION

Senior Vice President Brad Silverberg will head the Internet Platform and
Tools Division. This division will have overall development and marketing
responsibility for client software, runtime libraries, development tools
and additional server products to provide an open platform for developing,
running and managing rich, active Internet applications and content.

"The Internet has introduced substantial opportunities for us to offer
customer solutions that embrace and extend Internet standards," said
Silverberg. "We will be working in an open, cross-platform way to add
exciting new capabilities. This new division will give our Internet
platform efforts additional focus."

Microsoft will announce the details of its Internet application and tools
architectures at its Professional Developers Conference March 12-14 in San
Francisco. Developers will learn how to build upon their investment in
Windows and Microsoft BackOffice to create applications for the Internet.

CONSUMER PLATFORMS DIVISION

The Consumer Platforms Division, headed by Senior Vice President Craig
Mundie, will have two major areas of focus. The first is to produce
systems software products for non-PC devices that build on and extend the
company's technology and tools base. The second is to deliver complete,
integrated software systems for public network operators.

"We have been adapting our broadband technologies from the Interactive TV
development work to produce near-term product offerings for the Internet,
and longer term products that evolve naturally from midband to broadband
services," said Mundie. "In addition, we will continue to extend Microsoft
systems software offerings for non-PC products including handhelds,
entertainment systems, and other consumer-oriented devices."

David Cole, who led the Windows 95 development team, will be promoted to
Vice President and become a Business Unit Manager in the new division.
Cole and his group will build on their expertise in support of these new
non-PC hardware platform opportunities while continuing to provide
technology to the Desktop and Business Systems Division.

ROGER HEINEN, SENIOR MICROSOFT EXECUTIVE, RETIRES

Microsoft also announced today the retirement of Senior Vice President
Roger Heinen. Heinen joined Microsoft as head of the Developer Division in
February 1993, after leaving Apple Computer Inc. where he was Senior Vice
President of the AppleR Software Division. During Heinen's tenure,
Developer Division revenue grew 200 percent over three years. Among his
accomplishments was the hiring of key talent in the database and tools
areas.

"Roger has chosen the occasion of his 45th birthday to retire after 23
years in the software industry," said Bill Gates, Chairman and CEO of
Microsoft. "We appreciate the contributions Roger has made to Microsoft,
and we wish him well in the next phase of his life."

APPLICATIONS AND CONTENT GROUP REORGANIZATION

Microsoft last week reorganized the Applications and Content Group to
better align the organization for continued success. The Consumer
Productivity Group, which oversees products such as Microsoft Publisher,
Works and the Bob home manager, was combined with the Desktop Applications
Division under Microsoft Vice President Richard Fade. The Desktop
Applications Division is responsible for the industry-leading Microsoft
Office software, which includes Microsoft Word, Microsoft Excel, the
PowerPointR presentation graphics program, and other best-selling
applications. In addition to focusing on best-of-breed products, the newly
combined groups will take on the broader charter of shaping Microsoft's
overall productivity application strategy for the home and small
business.

Microsoft has created an Interactive Media Division consisting of MSN, The
Microsoft Network; games; kids titles; and the information businesses
formerly residing in the now-dissolved Microsoft Consumer Division. The
new division will focus on creating and marketing worldwide interactive
entertainment and information products across a variety of media,
including the Internet, with The Microsoft Network and other online
products, and CD-ROM versions. Microsoft Senior Vice President Patty
Stonesifer, formerly manager of the Consumer Division, will manage the
Interactive Media Division.

Microsoft Vice President Russ Siegelman, who heads MSN, will report to
Stonesifer. Under Siegelman, the MSN group will focus on continuing to
build the very best content and services offerings to fuel MSN's ongoing
growth. The MSN Systems Group, focusing on development of the MSN software
infrastructure, will join the Internet Platform and Tools Division and
will concentrate on developing a world-class Internet platform upon which
MSN and other services will build.

The MSNBC venture, Microsoft's participation in the DreamWorks Interactive
joint venture, and the Michael Kinsley online magazine will reside in the
Interactive Media Division. Also in the division will be the strategic
partnerships group under Microsoft Vice President Peter Neupert.

The Consumer Input Device Group, creators of the Microsoft Mouse, the
SideWinder joystick and other leading input devices, will now report
directly to Group Vice Presidents Pete Higgins and Nathan Myhrvold. This
group, formerly in the Microsoft Consumer Division, will continue to be
managed by General Manager Rick Thompson. Other groups in the Applications
and Content Group, including the Desktop Finance Group and Microsoft
Research, are not affected by these changes.

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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