REDMOND, Wash., June 8, 2004 — Microsoft Corp. today issued the following statement by Horacio Gutierrez, Associate General Counsel for Microsoft Europe, Middle East and Africa (EMEA), in connection with the company's appeal of the March 24 ruling by the European Commission:

"On Monday, June 7, we filed our appeal against the European Commissions decision with the European Unions Court of First Instance, based in Luxembourg. The Court has assigned case number T-201/04.

"We believe that the interest of consumers and other European companies should be at the heart of this case. Consumers and the industry benefit from product innovation and competition. The Commissions decision undermines the innovative efforts of successful companies, imposing significant new obligations on successful companies to license their proprietary technology to competitors, and restrict companies ability to add innovative improvements to their products. The legal standards set by the Commissions Decision significantly alter incentives for research and development that are important to global economic growth.

"As we pursue this appeal, we remain firmly committed to Europe and will continue our efforts to work collaboratively with European governments on the important issues facing European consumers."

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