Microsoft Corporate Profile and Organizational Structure Overview

Are your people ready? They are your biggest competitive advantage, but only if you give them the right tools. Like software that streamlines the busywork, serves up the right information, and helps integrate the whole company. Software that makes people ready, so they can make all the difference. Microsoft Software for the people-ready business. www.microsoft.com/peopleready/ 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 was founded as a partnership on April 4, 1975, by William H. Gates III and Paul G. Allen, and incorporated on June 25, 1981. Headquartered in Redmond, Wash., the company operates subsidiary offices in more than 60 foreign countries and employs over 59,000 people worldwide. Building on the popularity of the Windows operating system and the Office productivity suite, Microsoft is now focused on developing technology for the next-generation Internet. The company's .NET platform will enable businesses to collaborate to offer an unprecedented range of integrated and customized solutions -- solutions that enable their customers to act on information wherever and whenever they need it. Microsoft's organizational structure supports the company's increased focus on software services. There are two key aspects to Microsoft's past and future success: our vision of technology and the values that we live by every day as a company. To reflect our role as an industry leader and to focus our efforts on the opportunities ahead, we have embraced a new corporate mission:

To enable people and businesses throughout the world to realize their full potential
Delivering on this mission requires a clearly defined set of values and tenets. Our company values are not new, but have recently been articulated to reinforce our new mission. Delivering on Our Mission The tenets central to accomplishing our mission stem from our core company values: Broad Customer Connection Connecting with customers, understanding their needs and how they use technology, and providing value through information and support to help them realize their potential. A Global, Inclusive Approach Thinking and acting globally, enabling a diverse workforce that generates innovative decision-making for a broad spectrum of customers and partners, innovating to lower the costs of technology, and showing leadership in supporting the communities in which we work and live. Excellence In everything we do.

Trustworthy Computing Deepening customer trust through the quality of our products and services, our responsiveness and accountability, and our predictability in everything we do. Great People with Great Values Delivering on our mission requires great people who are bright, creative, and energetic, and who share the following values: Integrity and honesty. Passion for customers, partners, and technology. Open and respectful with others and dedicated to making them better. Willingness to take on big challenges and see them through. Self-critical, questioning, and committed to personal excellence and self-improvement. Accountable for commitments, results, and quality to customers, shareholders, partners, and employees.

Innovative and Responsible Platform Leadership Expanding platform innovation, benefits, and opportunities for customers and partners; openness in discussing our future directions; getting feedback; and working with others to ensure that their products and our platforms work well together. Enabling People to Do New Things Broadening choices for customers by identifying new areas of business; incubating new products; integrating new customer scenarios into existing businesses; exploring acquisitions of key talent and experience; and integrating more deeply with new and existing partners. At Microsoft, we're committed to our mission of helping our customers scale new heights and achieve goals they never thought possible. At Microsoft, we're motivated and inspired every day by how our customers use our software to find creative solutions to business problems, develop breakthrough ideas, and stay connected to what's most important to them. We are committed long term to the mission of helping our customers realize their full potential. Just as we constantly update and improve our products, we want to continually evolve our company to be in the best position to accelerate new technologies as they emerge and to better serve our customers.

Microsoft Community Affairs' Giving At Microsoft, people are the company's most important asset. Microsoft corporate culture nurtures an atmosphere in which creative thinking thrives, and employees are able to realize their fullest potential. The high value Microsoft places on people extends well beyond the company's corporate campus. Microsoft has a strong belief that if people are provided with the resources they need, they can accomplish great things. That philosophy is the foundation of Microsoft's software business, and is also the focus of Microsoft Community Affairs' Giving efforts to provide underserved communities with the resources they need to help realize their full potential, strengthen nonprofits through technology, diversify the technology Microsoft's 20-year history of community engagement has fostered a variety of key community partnerships built on the mutual commitment to find sustainable technology solutions that make real and lasting differences in people's lives. Microsoft Unlimited Potential (UP) is the primary focus of Microsoft's corporate philanthropy efforts. UP is a global program focused on partnering with others to provide technology skills for underserved young people and adults through community-based technology and learning centers (CTLCs).

Ultimately, Microsoft believes that by providing training and tools, we can partner to create social and economic opportunities that can transform communities and help people realize their potential. Last year alone, Microsoft contributed more than US$40 million in cash and US$224 million in software to nearly 5,000 nonprofit organizations.

Corporate Address Microsoft Corporation One Microsoft Way Redmond, WA 98052-7329 USA Tel: (425) 882-8080 Fax: (425) 706-7329 Web site: http://www.microsoft.com

Board of Directors
(Last Updated: March 26, 2007)

Board of Directors
Steven A. Ballmer James I. Cash Jr., Ph.D. Dina Dublon William H. Gates III Raymond V. Gilmartin Reed Hastings David F. Marquardt Charles H. Noski Dr. Helmut Panke Former Vice Chairman, AT&T Corporation Former Chairman of the Board of Management, BMW AG Jon A. Shirley Former President and Chief Operating Officer, Microsoft Corporation Former Chairman, President and Chief Executive Officer, Merck & Co., Inc. Founder, Chairman and CEO, Netflix, Inc. General Partner, August Capital Chief Executive Officer, Microsoft Corporation Former James E. Robison Professor, Harvard Business School Former Chief Financial Officer, JPMorgan Chase Chairman, Microsoft Corporation

Important Dates
Important Dates
Date 1975 Jan. 1, 1979 June 25, 1981 Aug. 12, 1981 Event Microsoft founded Microsoft moves from Albuquerque, New Mexico to Bellevue, Washington Microsoft incorporates IBM introduces its personal computer with Microsoft's 16-bit operating system, MS-DOS 1.0 Feb. 26, 1986 March 13, 1986 Aug. 1, 1989 Microsoft moves to corporate campus in Redmond, Washington Microsoft stock goes public Microsoft introduces earliest version of Office suite of productivity applications May 22, 1990 Aug. 24, 1995 Dec. 7, 1995 Microsoft launches Windows 3.0 Microsoft launches Windows 95 Bill Gates outlines Microsoft's commitment to supporting and enhancing the Internet June 25, 1998 Jan. 13, 2000 Feb. 17, 2000 June 22, 2000 Microsoft launches Windows 98 Steve Ballmer named president and chief executive officer for Microsoft Microsoft launches Windows 2000 Bill Gates and Steve Ballmer outline Microsoft's .NET strategy for Web services May 31, 2001 Oct. 25, 2001 Jan. 15, 2002 Nov. 7, 2002 Jan. 16, 2003 April 24, 2003 Oct. 21, 2003 July 20, 2004 Microsoft launches Office XP Microsoft launches Windows XP Bill Gates outlines Microsoft's commitment to Trustworthy Computing Microsoft and partners launch Tablet PC Microsoft declares annual dividend Microsoft launches Windows Server 2003 Microsoft launches Microsoft Office System Microsoft announces plans to return up to $75 billion to shareholders in dividends and stock buybacks

Important Dates
Date June 15, 2006 Event Microsoft announces that Bill Gates will transition out of a day-to-day role in the company in July 2008, Ray Ozzie is named chief software architect and Craig Mundie chief research and strategy officer July 20, 2006 Microsoft announces a new $20 billion tender offer and authorizes an additional share-repurchase program of up to $20 billion over five years Jan. 30, 2007 Microsoft launches Windows Vista and the 2007 Microsoft Office System to consumers worldwide Feb. 27, 2008 Microsoft launches Windows Server 2008, SQL Server 2008 and Visual Studio 2008 June 27, 2008 Bill Gates transitions from his day-to-day role at Microsoft to spend more time on his work at The Bill & Melinda Gates Foundation

Microsoft's Businesses
(Last Updated: March 2, 2007)

Microsoft Business Divisions

Microsoft Platforms & Services Division Includes the Windows Business Group, the Server & Tools Group, and the Online Services Group Microsoft Business Division Includes the Information Worker Group, the Microsoft Business Solutions Group, and the Unified Communications Group Microsoft Entertainment & Devices Division Includes the Home & Entertainment Group and the Mobile & Embedded Devices Group

Operation Centers
(Last Updated: May 5, 2005)

Operation Centers
Role Location

Operation Centers
Role Licensing, Manufacturing, Operations and Logistics Manufacturing Licensing and Operations Operations and Logistics Humacao, Puerto Rico, USA Reno, Nevada, USA Singapore Location Dublin, Ireland

Microsoft Subsidiaries
(Last Updated: Sept. 1, 2008) Microsoft Corporation has subsidiary offices located in the following countries and regions:

Microsoft Subsidiaries
Albania Algeria Argentina Armenia Australia Austria Azerbaijan Bahrain Bangladesh Belgium Bermuda Bolivia Bosnia & Herzegovina Brazil Brunei Bulgaria Cameroon Canada Chile China Iceland India Indonesia Iraq Ireland Israel Italy Netherlands New Zealand Nigeria Norway Oman Pakistan Panama Taiwan Thailand Trinidad & Tobago Tunisia Turkey Ukraine United Arab Emirates Colombia Costa Rica Japan Jordan Paraguay Peru United Kingdom United States Dominican Republic Ecuador Egypt El Salvador Estonia Finland France Germany Greece Guatemala Honduras Hong Kong SAR Hungary Lebanon Libya Lithuania Luxembourg Macao SAR Macedonia Malaysia Malta Mauritius Mexico Montenegro Morocco Namibia Romania Russia Saudi Arabia Senegal Serbia Singapore Slovakia Slovenia South Africa Spain Sri Lanka Sweden Switzerland

Microsoft Subsidiaries
Cte d'Ivoire Croatia Cyprus Czech Republic Denmark Kazakhstan Kenya Korea Kuwait Latvia Philippines Poland Portugal Puerto Rico Qatar Uruguay Venezuela Vietnam Zimbabwe

Revenue and Headcount

(Last Updated: June 30, 2008) Microsoft's worldwide headcount and revenue growth for the past 10 fiscal years are summarized below:

Headcount & Revenue Growth

Fiscal Year Ending June 30, 2008 June 30, 2007 June 30, 2006 June 30, 2005 June 30, 2004 June 30, 2003 June 30, 2002 June 30, 2001 June 30, 2000 June 30, 1999 Head Count 91,259 78,565 71,172 61,000 57,086 54,468 50,621 48,030 39,170 31,575 Net Revenue (US$) $60.42B $51.12B $44.28B $39.79B $36.84B $32.19B $28.37B $25.30B $22.96B $19.75B Growth Net Income (US$) $17.68B $14.07B $12.60B $12.25B $8.17B $7.53B $5.35B $7.35B $9.42B $7.79B Growth

18% 15% 11% 8% 14% 13% 12% 10% 16% 29%

26% 12% 3% 50% 8% 29% -28% -22% 21% 73%

Employment Information
(Last Updated: June 30, 2008)

Current Employment Headcount

Location Worldwide USA Puget Sound (Washington State) Employees 91,259 54,775 39,311

Reported Gender Breakout (USA)

Gender Male Female Employees 40,869 13,906 Percentage 75% 25%

Reported Age Breakout (USA)

Age Range1 29 or Under 30-39 40+
1

Employees 9,700 25,568 19,507

Percentage 17.7% 46.7% 35.6%

Average age: 37 years.

Functional Breakout (Worldwide)

Role Business Group Sales & Marketing Support Group Operations Group Employees 46,386 35,046 9,826

Real Estate Portfolio

(Last Updated: June 30, 2008)

Owned
Location Puget Sound Other US International SUBTOTAL: Total Square Feet 8,669,528 1,534,687 1,553,789 11,758,004 No. of Sites 72 7 7 86

Leased
Location Puget Sound Other US International SUBTOTAL: Total Square Feet 4,240,289 3,911,614 8,415,536 16,567,439 No. of Sites 52 135 396 583

TOTAL PORTFOLIO
Location Puget Sound Other US International GRAND TOTAL: Total Square Feet 12,909,817 5,446,301 9,969,325 28,325,443 No. of Sites 124 142 403 669

About Microsoft
Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software, services and solutions that help people and businesses realize their full potential. MS-DOS, .NET, Office XP, 2007 Office system, Windows, Windows Server, Windows 3.0, Windows 95, Windows 98, Windows 2000, Windows XP, and Windows Vista are registered trademarks of Microsoft Corporation. Other product and company names mentioned herein may be the trademarks of their respective owners.