REDMOND, Wash. -- March 24, 2004 -- The following comments were issued via satellite and Internet today by Steve Ballmer, chief executive officer of Microsoft Corporation, in response to the European Commission ruling:

"We respect the Commissions authority, but we believe their proposed action would actually reduce consumer choice and hurt European software developers. If you compare the Commissions action with the settlement we proposed its clear that our settlement would have offered far more choices and benefits to consumers."

"While we worked to resolve theses issues we remain 100% committed to our customers in Europe and we will continue to work with European governments on a wide range of issues like security, privacy, education and protecting our children online."

"Theres an important principle at stake in this case. We believe that every company should have the ability to improve its products to meet the needs of consumers. The Commissions actions would essentially freeze our technology where it is today and thats not good for consumers or for software developers. We will continue to work in good faith to try an address the Commissions concerns while protecting the principle of innovation."

"Regardless of how this case eventually turns out, you can be assured that we will respect and comply fully with European law. We will continue our high level of investment in the development of great technologies and products and we will ensure the continued availability of those technologies to our partners and customers."