Microsoft Increases Quarterly Dividend
Dec. 14, 2005
Dividend of $0.09 per share payable in March.

REDMOND, Wash. — Dec. 14, 2005 — Microsoft Corp. today announced that its board of directors declared a quarterly dividend of $0.09 per share, reflecting a one cent, or 12.5%, increase over the previous quarter’s dividend. The dividend is payable March 9, 2006 to shareholders of record on Feb. 17, 2006. The ex-dividend date will be Feb. 15, 2006.

“We remain confident in our growth prospects and have an exciting product line-up, which includes major releases like Xbox 360™, SQL Server™ 2005, Office 12 and Windows Vista™,” said Chris Liddell, chief financial officer at Microsoft.  “Today’s announcement of increasing our quarterly dividend continues our momentum on returning cash to shareholders after last year’s $44 billion cash payout and our previously announced intention to execute the $19 billion remaining under our stock repurchase plan twice as quickly.”

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Microsoft, Xbox 360 and Windows Vista are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

For more information, financial analysts and investors only:

Colleen Healy, senior director, Investor Relations, Microsoft, (425) 706-3703

For more information, press only:

Rapid Response Team, Waggener Edstrom Worldwide, (503) 443-7070, rrt@WaggenerEdstrom.com

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft® Web page at http://www.microsoft.com/presspass on Microsoft’s corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. Shareholder and financial information is available at http://www.microsoft.com/msft.

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