Bill Gates' Letter to Customers, Partners and Shareholders

November 5, 1999

To Our Customers, Partners and Shareholders,

Today, a U.S. District Court in Washington, D.C., issued a set of Findings of Fact in the legal proceedings between Microsoft and the Department of Justice. These findings do not represent a final decision in the case. They are one step in an ongoing legal process that has many steps remaining - in this Court and perhaps at the appellate level.

We respectfully disagree with a number of the Court’s findings, and believe the American legal system ultimately will affirm that Microsoft’s actions and innovations were fair and legal, and have brought tremendous benefits to consumers, our industry and to the United States economy.

The Court’s findings do acknowledge that Microsoft has contributed to improving the quality of Internet browsing software, lowering its cost and increasing its availability, thereby benefitting consumers.

Microsoft is committed to resolving this matter in a fair and responsible manner, while ensuring that the fundamental principles of consumer choice and innovation are protected.

At the heart of this case is whether a successful American company can continue to improve its products for the benefit of consumers. This is precisely what Microsoft did by developing new versions of the Windows operating system with built-in support for the Internet.

As this case moves toward resolution, Microsoft’s 30,000 employees are focused on creating the next generation of products that will deliver the benefits of the Information Age -- through great software and services - anytime, anywhere and on any device.

With the kind of innovation and competition that is the hallmark of our industry, we know that we must continue to be creative and improve our products if we are to be responsive to consumer needs and remain competitive in our industry. In the technology business, no one has a guaranteed position.

In addition to Microsoft’s long-standing commitment to innovation and competition, we are guided by the most basic American values: serving customers, quality, integrity, partnering and giving to our communities. We will continue to strive to live up to these values, while we focus our efforts on building great software for consumers.

I’m proud of the great work our employees have done over the years, and we appreciate the continuing support of our customers, partners and shareholders.

Sincerely,

Bill Gates

More information about Microsoft and this case can be found at http://www.microsoft.com/. To express your views about this case or other technology issues, visit http://www.microsoft.com/freedomtoinnovate.

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