Microsoft Honors Baldwin Park Police Department

Officials' Work Led to Conviction of Large California Software Counterfeiter

BALDWIN PARK, Calif. - Sept. 11, 1998 - - Microsoft Corp. today announced it will honor officials from the Baldwin Park Police Department in a ceremony recognizing their assistance in fighting software piracy in California. The investigative work of members of the Baldwin Park PD led to the conviction of Shawn Wang, Kai Lin Chen and Kenneth Hoa Khoung, each charged with possession of counterfeit materials and possession of equipment used in counterfeiting.

Law enforcement officials from the Baldwin Park PD apprehended Shawn Wang and his associates following raids that originated from a tip to Microsoft's anti-piracy hot line (800) RU-LEGIT (785-3448). The raids turned up counterfeit Microsoft® software valued at over $5.6 million and equipment used in the production, replication and packaging of counterfeit software, which was capable of producing several hundred thousand units of software per month.

"The Baldwin Park Police Department was instrumental in the seizure of counterfeit materials and machinery, and diligent in cataloging and analyzing evidence necessary to secure convictions of Shawn Wang and his associates," said Al Cabraloff, corporate and education manager at Microsoft. "We are grateful to detectives Craig Wilson, Christopher Hofford, Sgt. Robert Delgado and the Baldwin Park Police Department for providing the cooperation and resources to convict these criminals and to help protect the jobs and tax revenues of our local communities."

The ceremony will be held today at noon at the Baldwin Park Police Department in Baldwin Park, Calif.

"Piracy in California limits the growth and innovation of the software industry in the state and negatively affects the economy's revenue, taxes and job market," said Anne Murphy, Microsoft corporate attorney. "We will continue to support law enforcement in fighting software piracy and look forward to measurable rewards for this increased action."

Microsoft encourages consumers to become familiar with the warning signs to help them identify counterfeit or illegal software:

• Prices that are "too good to be true." This may be counterfeit product, or product that has been misdirected, such as product authorized for distribution only to educational institutions that is being offered to the general public.
• If back-up disks or CD-ROMs have handwritten labels, or the components appear to be of inferior quality, the product is suspect.
• If manuals appear to be photocopied or are of inferior quality, the product is suspect.
• If the product is marked with a phrase such as "for distribution with a new PC only," "special CD for licensed customers only," "not for retail or OEM distribution" or "academic price - not for use in a commercial environment," and this does not accurately describe the transaction, then the product will be acquired illegally.
• When purchasing a new computer system, it will include operating system software. If the operating system is Microsoft Windows® 98, it will be accompanied by a users manual that incorporates a Certificate of Authenticity as the cover. In addition, the customer will receive a CD-ROM with the software program. An end-user license agreement must be included (this may be seen online when the program is first run). If any of these elements are missing, the product is suspect.

The software industry is a significant driver of the current economic prosperity in the United States, accounting for $102.8 billion in software and software-related services, payment of $7.2 billion in taxes and the creation of more than 2 million jobs. However, software piracy

threatens the ability of the industry to continue to contribute to the American economy. According to a 1997 study by Nathan Associates Inc. commissioned by the Business Software Alliance, software piracy in 1996 resulted in the loss of 130,000 jobs in the United States, nearly $1 billion in tax revenues and $5.3 billion in wages.

Customers or resellers with questions about the legitimacy of Microsoft products should contact the Microsoft anti-piracy hotline, toll free, at (800) RU-LEGIT (785-3448), or send
e-mail to piracy@microsoft.com. Additional information about software piracy can be obtained by calling the BSA anti-piracy hot line at (888) NO-PIRACY (667-4722) or sending e-mail to software@bsa.org.

Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software for personal computers. The company offers a wide range of products and services for 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 every day.

Microsoft and Windows are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

Other product and company names herein may be trademarks of their respective owners.

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