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REDMOND, Washington, June 12 /PRNewswire/ —

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 US$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.”
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
1-800-285-7772 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.

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

Web site: http://www.microsoft.com

Microsoft Corp.