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.

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.”

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Apple Announces New Board of Directors

MACWORLD EXPO, BOSTON–August 6, 1997–Apple Computer Inc. today announced
significant changes to its Board of Directors, replacing all but two former
directors with four new hands-on industry executives. Apple’s new Board is
now composed of six directors:

Bill Campbell, president and CEO of Intuit Corp.
Campbell was vice president of Sales and Marketing
for Apple Computer from 1983 to 1987, and head of
Apple’s Claris software subsidiary from 1987 to 1991.

Gareth Chang, senior vice president of Hughes
Electronics and president of Hughes International.
Chang has served on the Board of Apple since
September 1996.

Larry Ellison, chairman and CEO of Oracle. Ellison
was the founder of Oracle which has grown to be the
second largest software company in the world.

Steve Jobs, chairman and CEO of Pixar Animation
Studios, creators of the Academy Award winning “Toy
Story”, the world’s first computer-animated feature
film. Jobs was a co-founder of Apple in 1976, and has
been an advisor to Apple during the past several
months.

Edgar Woolard, chairman of the board of E. I. DuPont
de Nemours and Co., and previously chief executive
officer of DuPont. Woolard has served on the Board of
Apple since June 1996.

Jerry York, former CFO of IBM and Chrysler
Corporation, and vice chairman of Tracinda. York is
widely acknowledged for his contributions at Chrysler
and IBM during their turn-arounds.

The company is in the process of recruiting a new Chief Executive Officer,
who will also join the Board. The new Board has decided not to name a
Chairman until the new Chief Executive Officer has been selected.

Resigning from the Apple Board are Mike Markkula, Katherine Hudson, and
Bernard Goldstein. This follows the recent resignations of Delano Lewis and
Gilbert Amelio.

“On behalf of the Board, I would like to thank Mr. Markkula, Ms. Hudson,
and Mr. Goldstein for their contributions to Apple during a very difficult
time in its history” said Woolard.