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Microsoft Announces Plans for July 2008 Transition for Bill Gates

   Microsoft company logo. (PRNewsFoto)

REDMOND, WA USA
 Working full time at Microsoft through June 2008, Gates then will continue
 as chairman and advisor while increasing Foundation efforts; Ray Ozzie and
                   Craig Mundie to assume expanded roles.

    REDMOND, Wash., June 15 /PRNewswire-FirstCall/ -- Microsoft Corp.
(Nasdaq: MSFT) today announced that effective July 2008 Bill Gates,
chairman, will transition out of a day-to-day role in the company to spend
more time on his global health and education work at the Bill & Melinda
Gates Foundation. The company announced a two-year transition process to
ensure that there is a smooth and orderly transfer of Gates' daily
responsibilities, and said that after July 2008 Gates would continue to
serve as the company's chairman and an advisor on key development projects.
    (Logo: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO )
    The company announced that Chief Technical Officer Ray Ozzie will
immediately assume the title of chief software architect and begin working
side by side with Gates on all technical architecture and product oversight
responsibilities, to ensure a smooth transition. Similarly, Chief Technical
Officer Craig Mundie will immediately take the new title of chief research
and strategy officer and will work closely with Gates to assume his
responsibility for the company's research and incubation efforts; Mundie
also will partner with general counsel Brad Smith to guide Microsoft's
intellectual property and technology policy efforts.
    "Our business and technical leadership has never been stronger, and
Microsoft is well-positioned for success in the years ahead. I feel very
fortunate to have such great technical leaders like Ray and Craig at the
company," Gates said. "I remain fully committed and full time at Microsoft
through June 2008 and will be working side by side with Ray and Craig to
ensure that a smooth transition occurs."
    "This was a hard decision for me," Gates added. "I'm very lucky to have
two passions that I feel are so important and so challenging. As I prepare
for this change, I firmly believe the road ahead for Microsoft is as bright
as ever."
    In September 2005 Microsoft Chief Executive Officer Steve Ballmer
organized the company into three divisions under presidents Jim Allchin,
Kevin Johnson, Robbie Bach and Jeff Raikes, who were given much greater
responsibility for product development and strategy decisions within their
respective businesses. In August 2005 the company appointed Kevin Turner as
chief operating officer.
    "Bill and I are confident we've got a great team that can step up to
fill his shoes and drive Microsoft innovation forward without missing a
beat," Ballmer said. "We will continue to hire the world's best technical
talent and give them the tools to do their best work, and we will continue
to tackle the biggest challenges and opportunities for our customers by
investing for the long term."
    Ballmer and Gates noted that Microsoft has been steadily expanding its
senior leadership in recent years, and that today's announcement continues
a transition process that has been underway for several years. In January
2000, Gates assumed the role of chief software architect and Ballmer
assumed the role of CEO, responsible for all day-to-day operations and
company business strategy.
    "This is a very sensible and thorough approach. A two-year transition
will ensure that the company has a smooth transfer of strategy and
knowledge from Bill to the next generation of leaders," said James I. Cash,
Ph.D., member of the Microsoft board of directors and former James E.
Robison Professor, Harvard Business School. "Steve and his management team
are very impressive, and I'm confident the company will not miss a step."
    Ozzie, 50, worked on the first electronic spreadsheet, VisiCalc, in the
early 1980s, then joined Lotus Development Corp. in 1983 to develop Lotus
Symphony, an MS-DOS(R)-based integrated software management product that
combined word processing, spreadsheet, business graphics, data management
and communications capabilities. In 1984, Ozzie formed Iris Associates Inc.
to develop Lotus Notes. In 1997 Ozzie founded Groove Networks, where he
developed Groove Virtual Office. Microsoft acquired Groove Networks in
April 2005 and named Ozzie chief technical officer.
    Mundie, 56, joined Microsoft in 1992 to create and run the Consumer
Platforms Division, which was responsible for developing non-PC platform
and service offerings including the Microsoft(R) Windows(R) CE operating
system; software for handheld PCs, Pocket PCs and Auto PCs; and early
telephony products. Mundie also started Microsoft's digital TV efforts and
acquired and managed the WebTV Networks Inc. subsidiary. Mundie is also the
original champion of the Trustworthy Computing Initiative at Microsoft,
which has influenced Microsoft's software development strategy. His current
responsibilities also include global technology policy and a variety of
technical and business incubation activities.
    Ozzie and Mundie will continue to report to Gates. At an appropriate
time during the two-year transition period, they will shift to reporting to
Ballmer.
    Gates, 50, started Microsoft in 1975 with childhood friend Paul Allen.
He took Microsoft public in 1986 and was the company's chairman and CEO
until 2000, when Ballmer took over as CEO. For the past six years Gates has
focused on Microsoft's software development as the company's chairman and
chief software architect. In 2000, with his wife, he formed the Bill &
Melinda Gates Foundation, whose assets now are $29.1 billion.
    Founded in 1975, Microsoft has pioneered many of the software
innovations that paved the way for the digital information revolution and
launched the PC industry. Beginning with MS-DOS, Microsoft's first
operating system, and continuing with products such as Microsoft Office,
Microsoft Windows and Xbox(R), the company has developed a broad range of
software, services and solutions that have transformed the way people work,
communicate and play. Microsoft has 63,000 employees in more than 100
countries and generates annual sales of more than $40 billion (U.S.). With
products for desktop PCs, servers and mobile devices, Microsoft continues
to be the worldwide leader in helping people and businesses realize their
full potential.
    Founded in 1975, Microsoft is the worldwide leader in software,
services and solutions that help people and businesses realize their full
potential.
    NOTE: Microsoft, Windows, MS-DOS and Xbox are either registered
trademarks or trademarks of Microsoft Corp. in the United States and/or
other countries.
    The names of actual companies and products mentioned herein may be the
trademarks of their respective owners.


SOURCE Microsoft Corp.




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