From:                     John Connors

Sent:                      Tuesday, January 18, 2000 11:33 PM

To:                         MS Corporate Employees: FTE Only; MS Domestic Employees: FTE Only; MS Intl Employees: FTE Only

Subject:                 Microsoft Announces Record Quarterly Revenue and Income

Importance:           High

Today at 1:30 p.m. Pacific time, Microsoft released earnings for the second quarter FY 2000.

Revenue was $6.11 billion for the quarter, an 18 percent increase over the $5.20 billion for the same quarter last year. Net income and diluted earnings per share were $2.44 billion and $0.44, a 22 percent increase over the $0.36 diluted earnings per share reported for the corresponding quarter last year.

You can view the complete text of the press release now at the Investor Relations Intranet site: http://finweb/finstock/
or at their Internet site: http://www.microsoft.com/msft/

The earnings conference call with financial analysts will take place from 2:30 - 3:30 p.m Pacific time today.
The call will be Webcast live on CorpNet. You can listen at: http://winme/network/details.asp?EventId=6609
For those of you without CorpNet access, the call will also be Webcast from: http://www.microsoft.com/msft/

A playback of the call will be available at both sites until end of business on Tuesday, January 25

and listen live to our conference call with financial analysts at 2:30 p.m Pacific time:
http://winme/network/details.asp?EventId=6341

If you don't have access to CorpNet, you can listen to the call at our Investor Relations Internet site:
http://www.microsoft.com/msft/

A replay of the call will be available from both sites through close of business on Tuesday, October 26. 

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