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.

MACWORLD EXPO, 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 1984, 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."

Apple Computer, Inc., a recognized innovator in the information industry and leader in multimedia technologies, creates powerful solutions based on easy-to-use personal computers, servers, peripherals, software, personal digital assistants and Internet content. Headquartered in Cupertino, California, Apple develops, manufactures, licenses and markets solutions, products, technologies and services for business, education, consumer, entertainment, scientific and engineering and government customers in more than 140 countries.

Apple Canada Inc. is headquartered in Markham, Ontario and is a wholly-owned subsidiary of Apple Computer, Inc. Apple products are available at more than 300 Authorized Apple Canada Dealer locations across Canada.

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Customer Information Contact: If you are considering the purchase of an Apple product and would like to have product information faxed to you, please call 1 (800) 263-3394 in Canada. If you do not have a fax machine or would like to locate an Authorized Apple Canada Dealer near you, please call 1 (800) 665-2775 extn. 450.

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