Microsoft and Apple Affirm Commitment to Build Next Generation Software for Macintosh

Companies announce patent cross-license agreement.

Microsoft announces Office 98 for Macintosh; Apple announces Internet Explorer to be bundled with Mac OS.

Product commitment backed up with $150M Microsoft investment in Apple Computer.

Boston, August 6, 1997--In a keynote address delivered today at Macworld Boston, Apple Computer Inc. director and co-founder Steve Jobs and Microsoft Corp. chairman and CEO Bill Gates announced a broad product and technology development agreement between Apple and Microsoft including the following:

• The companies agreed to a broad patent cross-licensing agreement. It paves the way for the two companies to work more closely on leading-edge technologies for the Mac platform.
• Microsoft will develop and ship future versions of its popular Microsoft Office productivity suite, Internet Explorer and other Microsoft tools for the Mac platform.
• Apple will bundle the Microsoft Internet Explorer browser with the Mac OS, making it the default browser in future operating system software releases.
• Apple and Microsoft plan to collaborate on technology to ensure compatibility between their respective Virtual Machines for Java and other programming languages.
• To further support its relationship with Apple, Microsoft will invest $150 million in non-voting Apple stock.

"In 1985, Steve Jobs and I stood together when Microsoft announced Microsoft Excel, an application that is widely credited with helping to define the potential of the Mac as a great applications platform," said Gates. "Today's announcements underscore our continued belief in the Mac as a platform for applications and leading-edge Internet technologies. Microsoft has millions of customers who rely on Macintosh technology and they can be assured that Microsoft products for the Mac will continue to be available."

"We are thrilled at the prospect of working more closely with Microsoft on applications and Internet software" said Jobs. "We are confident that this is the beginning of a much closer relationship between the two companies, which will greatly benefit our common customers."

For more information, contact (Press only):

Nina Bondarook or Greg Shaw
Waggener Edstrom
503-245-0905

Greg Shaw or John Pinette
Microsoft
425-882-8080

Katie Cotton
Apple Computer
408-974-7269

For more information, contact (Financial Analysts only):

Carla Lewis
Microsoft
206-936-3703

Nancy Paxton
Apple Computer
408-974-5420

Apple's home page on the World Wide Web: http://www.apple.com/