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Microsoft's Expanding Universe

In the beginning, there was the PC. Now, Bill Gates sees vast new territories 
to conquer, from the most powerful corporate software to Internet commerce.


ENTERPRISE
Microsoft products, including Windows NT, BackOffice, and SQL Server, are 
starting to handle heavy-duty computing tasks that used to require expensive 
mainframes. Microsoft's revenues in this area are expected to top $2.7 billion 
in fiscal 1998.


NETWORK OPERATING SYSTEMS

UNITS SHIPPED IN '96: 3.3 MILLION
MICROSOFT           39.8%
NOVELL              27.2%
UNIX (TOTAL)        21.7%

DATA: INTERNATIONAL DATA CORP.


DATABASES & TOOLS

DATABASE REVENUES FOR 1996
ORACLE              38.4%
IBM                 21.8%
INFORMIX            9.7%
SYBASE              6.9%
COMPUTER ASSOC.     5.0%
MICROSOFT           4.0%

DATA: DATAQUEST INC.


CORPORATE E-MAIL

Microsoft Exchange lags behind market leader Lotus Notes.
NUMBER OF E-MAIL BOXES, AS OF 9/30/97
NOTES=              15.0 MILLION
EXCHANGE=           7.2 MILLION

DATA: ELECTRONIC MAIL & MESSAGING SYSTEMS


INTRANET WEB SERVERS

Microsoft's NT runs a growing share of corporate nets.
WINDOWS NT        55%
UNIX              36%
NOVELL             4%

DATA: ZONA RESEARCH


CONSUMER ELECTRONICS
Microsoft wants Windows CE, a simplified version of Windows, to power a new 
crop of digital appliances, including Web TVs, phones, and even navigation 
systems for cars.


HANDHELDS
New computing devices based on the Windows CE operating system are starting to 
take off, with 20% of the market.

DATA: DATAQUEST INC.


PC SOFTWARE
Microsoft dominates the markets for PC operating-system software and 
productivity suites. Those markets are also its bread and butter. 75% of its 
revenues and most of its profits came from desktop software in fiscal 1997.


PERSONAL-FINANCE SOFTWARE
Microsoft Money has only a 14% share, compared with 82% for Intuit's Quicken.

DATA: PC DATA


PRODUCTIVITY SUITES

Microsoft's programs are office staples.
1996 DOLLAR SALES
MICROSOFT          87.0%
LOTUS              6.0%
COREL              4.7%

DATA: DATAQUEST INC.


OPERATING SYSTEMS

Windows is ubiquitous.
UNITS SOLD IN 1997:
MICROSOFT WINDOWS    86.0%
APPLE                4.6%
DOS                  2.3%
OTHER                7.1%


EDUCATION AND GAMES
Microsoft's 50 titles, from the Encarta encyclopedia to Flight Simulator, 
should bring in $300 million this fiscal year.


INTERNET
Microsoft is making a broad-based push into cyberspace. It offers a Web browser 
and server programs, and runs 16 different Web sites that
it hopes will become future moneymakers.


ARTS & ENTERTAINMENT
With its Sidewalk city sites, Microsoft is encroaching on local newspapers and 
the $24 billion local ad market.


ONLINE SERVICES

Microsoft Network is still a distant No.2. U.S. subscribers as of June, 1997:
AOL/COMPUSERVE  9.6 million
MSN             1.7 million
PRODIGY         1.0 million

DATA: INTERNATIONAL DATA CORP.


INTERNET TV
Microsoft bought WebTV, the No.1 service in the nascent market, and is pitching 
the technology to cable operators.


WEB BROWSERS
A Dataquest Inc. study gives Microsoft almost 40% of the market--from nothing 
two years ago. Analysts see it surpassing Netscape as early as mid-1998.


TRAVEL
Expedia, with more than 2 million in travel bookings a week, is one of the top 
travel sites.

DATA: MICROSOFT CORP.


NEWS
Microsoft handles the Web-site part of its $250 million cable-TV and Internet 
news joint venture with NBC. Media Metrix ranks it ahead of rival sites such as 
USA Today and CNN.

DATA: MSNBC


CAR BUYING
Microsoft's CarPoint is already one of the top online auto- sales sites. 
Analysts expect it to pull in $100 million in revenues in 2001.

DATA: FORRESTER RESEARCH INC.





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