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Microsoft Addresses Justice Department Accusations

REDMOND, Wash. - Oct. 23, 1997 -- In direct response to accusations made by the Department of
Justice, the Microsoft Corp. announced today that it will be acquiring the federal government
of the United States of America for an undisclosed sum.

"It's actually a logical extension of our planned growth", said Microsoft chairman Bill Gates,
"It really is going to be a positive arrangement for everyone".

Microsoft representatives held a briefing in the oval office of the White House with
U.S. President Bill Clinton, and assured members of the press that changes will be "minimal".
The United States will be managed as a wholly owned division of Microsoft. An initial public
offering is planned for July of next year, and the federal government is expected to be
profitable by "Q4 1999 at latest", according to Microsoft president Steve Ballmer.

In a related announcement, Bill Clinton stated that he had "willingly and enthusiastically"
accepted a position as a vice president with Microsoft, and will continue to manage the United
States government, reporting directly to Bill Gates. When asked how it felt to give up the
mantle of executive authority to Gates, Clinton smiled and referred to it as "a relief". He
went on to say that Gates has a "proven track record", and that U.S. citizens should offer
Gates their "full support and confidence". Clinton will reportedly be earning several times
the $200,000 annually he has earned as U.S. president, in his new role at Microsoft.

Gates dismissed a suggestion that the U.S. Capitol be moved to Redmond as "silly", though did
say that he would make executive decisions for the U.S. government from his existing office at
Microsoft headquarters. Gates went on to say that the House and Senate would "of course" be
abolished. "Microsoft isn't a democracy", he observed, "and look how well we're doing". In
addition, Gates said, all state and local branch governments will have to renew their licensing
agreements with the new Microsoft Federal Government in order to keep current liberty rights
intact. "It's not anti-competitive, only acting as any capitalist soverign would toward lesser
competitors."

When asked if the rumored attendant acquisition of Canada was proceeding, Gates said, "We don't
deny that discussions are taking place".

Microsoft representatives closed the conference by stating that United States citizens will be
able to expect lower taxes, increases in government services and discounts on all Microsoft
products.

About Microsoft:

Founded in 1975, Microsoft (NASDAQ "MSFT") is the worldwide leader in software for personal
computers, and democratic government. The company offers a wide range of products and services
for public, business and personal use, each designed with the mission of making it easier and
more enjoyable for people to take advantage of the full power of personal computing and free
society every day.

About the United States:

Founded in 1789, the United States of America is the most successful nation in the history of
the world, and has been a beacon of democracy and opportunity for over 200 years. Headquartered
in Washington, D.C., the United States is a wholly owned subsidiary of Microsoft Corporation.

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