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  Microsoft Issues Statement Regarding Yahoo!

   Microsoft company logo. (PRNewsFoto/Microsoft)

REDMOND, WA UNITED STATES
    REDMOND, Wash., May 18 /PRNewswire-FirstCall/ -- Microsoft Corp. today
issued the following statement:

    (Logo: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO )

    "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.

    "There of course can be no assurance that any transaction will result
from these discussions."

    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.

    Statements in this release that are "forward-looking statements" are
based on current expectations and assumptions that are subject to risks and
uncertainties. Actual results could differ materially because of a number
of factors, including those set forth in Microsoft's annual report on Form
10-K and quarterly reports on Form 10-Q, copies of which may be obtained by
contacting Microsoft Corporation's Investor Relations department at (800)
285- 7772 or at Microsoft Corporation's website at
http://www.microsoft.com/msft.

    All information in this release is as of May 18, 2008. Microsoft
Corporation undertakes no duty to update any forward-looking statement to
conform the statement to actual results or changes in the company's
expectations.



  SOURCE Microsoft Corp.




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