Microsoft Corporation confirmed today that it has made a number of concessions to address concerns raised by the European Commission regarding the company�s compliance with the interoperability part of the Commission�s March 24, 2004 Decision. The concessions, outlined in a proposal the company submitted to the Commission last week, include an agreement to implement the interoperability measures on a worldwide basis. Microsoft also agreed to a new royalty structure for licensing its Windows protocols for use in non-Microsoft software products, with more offerings and greater customization.

�In order to resolve some complex issues over the past few weeks, we�ve made some tough concessions,� said Steve Ballmer, CEO, Microsoft Corporation. �We take our responsibilities in Europe very seriously, and will continue to focus on fulfilling all our obligations in every way we can.�

The European Commission has indicated that Microsoft�s measures and the company�s updated licensing program will now be subject to a market test among industry participants.

�We made important changes to address the Commission�s concerns," said Brad Smith, Microsoft�s General Counsel. �These interoperability measures will now apply on a worldwide basis instead of in Europe only.�