REDMOND, Washington, April 9 /PRNewswire/ --

Microsoft Corp. (Nasdaq: MSFT) today issued the following statement from
Brad Smith, Microsoft's General Counsel, related to an announcement today by
Yahoo! Inc. (Nasdaq: YHOO):

"Any definitive agreement between Yahoo! and Google would consolidate
over 90% of the search advertising market in Google's hands. This would make
the market far less competitive, in sharp contrast to our own proposal to
acquire Yahoo! We will assess closely all of our options. Our proposal
remains the only alternative put forward that offers Yahoo! shareholders full
and fair value for their shares, gives every shareholder a vote on the future
of the company, and enhances choice for content creators, advertisers, and
consumers."

About Microsoft

Founded in 1975, Microsoft (NASDAQ: MSFT) is the worldwide leader in
software, services and solutions that help people and businesses realize
their full potential.

This release does not constitute an offer to sell or the solicitation of
an offer to buy any securities or a solicitation of any vote or approval.
This material is not a substitute for the prospectus/proxy statement
Microsoft Corporation would file with the Securities and Exchange Commission
(the "SEC") if an agreement between Microsoft Corporation and Yahoo! Inc. is
reached or any other documents which Microsoft Corporation may file with the
SEC and send to Yahoo! stockholders in connection with the proposed
transaction. INVESTORS AND SECURITY HOLDERS OF YAHOO! INC. ARE URGED TO READ
ANY SUCH DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY WHEN THEY
BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE
PROPOSED TRANSACTION.

Investors and security holders will be able to obtain free copies of any
documents filed with the SEC by Microsoft Corporation through the web site
maintained by the SEC at www.sec.gov. Free copies of any such documents can
also be obtained by directing a request to Investor Relations Department,
Microsoft Corporation, One Microsoft Way, Redmond, Washington 98052-6399.

Microsoft Corporation and its directors and executive officers and other
persons may be deemed to be participants in the solicitation of proxies in
respect of the proposed transaction. Information regarding Microsoft
Corporation's directors and executive officers is available in its Annual
Report on Form 10-K for the year ended June 30, 2007, which was filed with
the SEC on August 3, 2007, and its proxy statement for its 2007 annual
meeting of stockholders, which was filed with the SEC on September 21, 2007.
Other information regarding the participants in a proxy solicitation and a
description of their direct and indirect interests, by security holdings or
otherwise, will be contained in any proxy statement filed in connection with
the proposed transaction.

Statements in this release that are "forward-looking statements" are
based on current expectations and assumptions that are subject to risks and
uncertainties. Actual results could differ materially because of factors such
as Microsoft Corporation's ability to achieve the synergies and value
creation contemplated by the proposed transaction, Microsoft Corporation's
ability to promptly and effectively integrate the businesses of Yahoo! Inc.
and Microsoft Corporation, the timing to consummate the proposed transaction
and any necessary actions to obtain required regulatory approvals, and the
diversion of management time on transaction-related issues. For further
information regarding risks and uncertainties associated with Microsoft
Corporation's business, please refer to the "Management's Discussion and
Analysis of Financial Condition and Results of Operations" and "Risk Factors"
sections of Microsoft Corporation's SEC filings, including, but not limited
to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies
of which may be obtained by contacting Microsoft Corporation's Investor
Relations department at +1-800-285-7772 or at Microsoft Corporation's website
at http://www.microsoft.com/msft.

All information in this release is as of April 9, 2008. Microsoft
Corporation undertakes no duty to update any forward-looking statement to
conform the statement to actual results or changes in the company's
expectations.

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Web site: http://www.microsoft.com