Sept. 16, 2008

Microsoft Closes Acquisition of DATAllegro

Company announces plans to bring DATAllegro’s enterprise-class data warehousing capabilities to customers, partners in less than 24 months.

Microsoft Corp. today announced that its board of directors approved a new share repurchase program authorizing up to an additional $40 billion in share repurchases with an expiration of September 30, 2013.

“Our position hasn’t changed. Microsoft has no interest in acquiring Yahoo!; there are no discussions between the companies.”

Microsoft to Acquire DATAllegro

Microsoft Corp. today announced that it intends to acquire DATAllegro Inc., a provider of breakthrough data warehouse appliances. The acquisition will extend the capabilities of Microsoft’s mission-critical data platform, making it easier and more cost-effective for customers of all sizes to manage and glean insight from the ever-expanding amount of data generated by and for businesses, employees and consumers.

Despite working since January 31 of this year, as well as in the early part of last year, we have never been able to reach an agreement in a timely way on acceptable terms with the current management and Board of Directors at Yahoo!. We have concluded that we cannot reach an agreement with them. We confirm, however, that after the shareholder election Microsoft would be interested in discussing with a new board a major transaction with Yahoo!, such as either a transaction to purchase the “Search” function with large financial guarantees or, in the alternative, purchasing the whole company. As Mr. Icahn notes in his statement today, it would be premature to discuss at this time important details such as the price or other terms of a possible transaction.

Jon Shirley has decided not to seek re-election to Microsoft’s board of directors.

Microsoft Corp. today announced that after 25 years of service, Jon A. Shirley has chosen not to seek re-election to Microsoft’s board of directors at the company’s annual shareholder meeting, to be held in November 2008.

Microsoft Corp. today issued the following statement:

“In the weeks since Microsoft withdrew its offer to acquire Yahoo!, the two companies have continued to discuss an alternative transaction that Microsoft believes would have delivered in excess of $33 per share to the Yahoo! shareholders. This partnership would ensure healthy competition in the marketplace, providing greater choice and innovation for advertisers, publishers and consumers.“As stated on May 3rd and reiterated on May 18th Microsoft was not interested in rebidding for all of Yahoo!. Our alternative transaction remains available for discussion.”

Microsoft Declares Quarterly Dividend

Dividend of $0.11 per share payable in September

Microsoft announced that it is continuing to explore and pursue its alternatives to improve and expand its online services and advertising business.

In light of developments since the withdrawal of the Microsoft proposal to acquire Yahoo! Inc., Microsoft announced that it is continuing to explore and pursue its alternatives to improve and expand its online services and advertising business. Microsoft is considering and has raised with Yahoo! an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo! Microsoft is not proposing to make a new bid to acquire all of Yahoo! at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo! or discussions with shareholders of Yahoo! or Microsoft or with other third parties

Microsoft Withdraws Proposal to Acquire Yahoo!

Microsoft Completes Acquisition of Danger, Incorporates Company Into Premium Mobile Experiences Group

Microsoft Corp. has completed its acquisition of Danger, Inc., the company announced today. Danger’s expertise in building great, intuitive client software for mobile handsets connected to powerful hosted back-end services fosters rich consumer experiences in communication, media sharing, entertainment and personalization. The combined force of Danger and Microsoft strengthens the company’s ability to provide innovative mobile experiences to more consumers.

Microsoft Comments on Yahoo! Announcement

Microsoft Corp. (NASDAQ: MSFT) today issued the following statement from Brad Smith, Microsoft’s General Counsel, related to an announcement today by Yahoo! Inc. (NASDAQ: YHOO): “Any definitive agreement between Yahoo! and Google would consolidate over 90% of the search advertising market in Google’s hands. This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo! We will assess closely all of our options. Our proposal remains the only alternative put forward that offers Yahoo! shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers, and consumers.”

Microsoft Sends Letter to Yahoo! Board of Directors

The management has stated a three week deadline for a response to the bid, failing which the company would initiate a proxy contest to elect an alternative slate of directors for the Yahoo! board.

Microsoft Declares Quarterly Dividend

Dividend of $0.11 per share payable in June

Microsoft Unveils Its First Windows Embedded R&D Center in Europe

New regional development center in Germany is part of $75 million global investment by Windows Embedded Business.

Fostering Innovation and Collaboration, Microsoft and Alpine Enter Into Broad Patent Licensing Agreement

IP and technology agreement will further innovation in the automotive field. The agreement expands the relationship between Alpine and Microsoft to promote the exchange of information and the incorporation of patented technologies in car navigation systems and other consumer electronics products

Microsoft Announces New, Expanded Roles for Key Executives

Fourteen leaders promoted as company matches leadership talent to expanding business priorities. The seven executives promoted to senior vice president are Chris Capossela, Kurt DelBene, Antoine Leblond, Andy Lees, Satya Nadella, S. Somasegar and Bill Veghte. The seven executives promoted to corporate vice president are Walid Abu-Hadba, Brad Brooks, Larry Cohen, Steve Guggenheimer, Scott Guthrie, Roz Ho and Brian Tobey.

Microsoft Responds to Yahoo! Announcement

Reiterates Full and Fair Proposal for Microsoft-Yahoo! Combination

Microsoft Expands Consumer Reach of Windows Mobile Phones With Sony Ericsson

First Windows Mobile phone from Sony Ericsson offers a premium consumer and business experience.

Microsoft Research to Open New Doors for Scientists in Cambridge, Mass.

Microsoft plans to open its sixth research lab in an effort to bring technical researchers and social scientists together. The company also named its first female lad director for the operations. The lab will pursue new interdisciplinary areas of research that bring together core computer scientists and social scientists to better understand, model and enable the computing and online experiences of the future.

Prison Sentences for Ringleaders of Global Software Counterfeit Syndicate

Sentencing signals the end of Taiwan-based operation, the largest known producer and distributor of fake Microsoft products in the world from 1997 to 2003.

Statement from Brad Smith, General Counsel, Microsoft

The combination of Microsoft and Yahoo! will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising. The alternative scenarios only lead to less competition on the Internet.

Microsoft Proposes Acquisition of Yahoo! for $31 per Share

Transaction valued at approximately $44.6 billion in cash and stock; provides 62 percent premium to current trading price for Yahoo! shareholders; combined entity to create a more competitive company, providing superior value to shareholders, better choice and innovation for customers and partners.