SAN FRANCISCO — Feb. 17, 2004 — Microsoft Corp. today announced at the Intel Developer Forum in San Francisco that its Windows® operating systems for 64-bit extended systems will be fully compatible with Intel Corp.’s newly announced processors with 64-bit extension technology. Microsoft CEO Steve Ballmer encouraged testers, developers and hardware manufacturers to prepare to take advantage of Windows for 64-bit extended systems, saying Microsoft had released its latest Windows to 5,000 members of its technical beta community. The 64-bit extended systems versions of Windows Server™ 2003 and Windows XP provide customers with the versatility to run both 32-bit and 64-bit applications, enabling them to move to 64-bit computing at their own pace while preserving their current investment in 32-bit applications.

“Microsoft’s and Intel’s leadership continues to deliver powerful, cost-effective, 64-bit computing to the broad IT market,” said Jim Allchin, group vice president of the Platforms Group at Microsoft. “Windows for 64-bit extended systems unlocks powerful new 64-bit processing capabilities while preserving the value of customer’s 32-bit application investments.”

With 64-bit computing, customers see significant performance and scalability gains in applications that require large amounts of memory or intensive numeric calculations. For server applications, this includes database servers, Terminal Server deployments, business applications and technical computing. Desktop applications include digital content creation, computer-aided design/manufacturing, and professional video editing.

Microsoft plans to make Windows XP 64-Bit Edition for 64-Bit Extended Systems and Windows Server 2003 for 64-Bit Extended Systems, which are currently in beta, available in the second half of 2004. Customers and industry partners will hear more about Windows for 64-bit extended systems at Microsoft’s upcoming Windows Hardware Engineering Conference (WinHEC) and Tech Ed 2004.

Further information about 64-bit computing on Windows is available at http://www.microsoft.com/windowsserver2003/64bit/default.mspx and at http://www.microsoft.com/windowsxp/64bit/default.asp.

About Windows XP

Windows XP — a standard for efficient, dependable computing — gives users the freedom to experience the digital world by building on the momentum of the Internet and digital media with improvements that increase productivity and provide business and home users with an easy-to-use and exciting PC experience. Windows XP puts the exciting experiences of the digital age at users’ fingertips by uniting PCs, devices and services, and brings the solid foundation of Windows 2000 to home PC users, enhancing reliability, security and performance. More information on Microsoft® Windows XP can be found on the Microsoft Web site at http://www.microsoft.com/windowsxp/.

About Windows Server 2003

Windows Server 2003 is a comprehensive, integrated and secure infrastructure designed to help customers reduce costs and increase the efficiency and effectiveness of IT operations. Building on Windows 2000 family strengths, the new server platform helps customers extend existing resources while laying the foundation for building a new generation of connected applications that improve business productivity. Windows Server 2003 is the foundation for the Microsoft Windows Server System™ integrated server infrastructure, designed for building, deploying and operating agile business solutions.

About Microsoft

Founded in 1975, Microsoft Corp. (Nasdaq “MSFT”) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software — any time, any place and on any device.