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October 13, 1998

MICROSOFT FILES RESPONSE TO “SET RECORD STRAIGHT”

By CBR Staff Writer

Ahead of next Monday’s scheduled start for its antitrust trial, Microsoft Corp has issued a detailed response to the Justice Department’s claims against the company that effectively accuses the government of a smear campaign. Entitled Setting the Record Straight, the company’s 40-page statement offers a point-by- point defense of its business practices and accuses the government of taking information provided for the trial and carefully releasing only a handful of snippets to quote misleadingly in order to attack Microsoft and thus create false impressions with the public and the media. The document also maintained that the company is confident the facts will show that Microsoft has competed fairly and delivered important innovations and benefits to consumers. One of the company’s main complaints is that the final case the DOJ submits has been altered and widened significantly since it was first filed in June. In a long list of assertions made in the court filing, Microsoft contends, among other things, that: Windows 98 is a single, integrated product that benefits consumers; Netscape has no difficulty reaching customers and its own strategic failings have contributed to the decline in usage of Navigator; America Online and Intuit chose Internet Explorer as an optimal commercial and competitive decision; it has not bullied Intel or any other high-tech companies; it has worked cooperatively with Apple Computer; it is offering developers the best and fastest Java implementation for Windows and for cross platform Java programs; and lastly, that it does not have monopoly power, regardless of how the market is defined.

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