Notice to All Microsoft Employees With Smith Barney Accounts at the Seattle Branch Offices From the Securities Arbitration Law Firm of Klayman & T

21 October 2005

The Law Firm of Klayman & Toskes, P.A. ("K&T")
(http://www.nasd-law.com), representing numerous Microsoft, Inc.
(Nasdaq:MSFT) Employee Stock Option Plan ("ESOP") participants in
securities arbitration lawsuits, continues to pursue and investigate claims
on their behalf.

K&T believes that Microsoft ESOP participants received unsuitable
investment recommendations to exercise and hold their employee stock
options by Smith Barney's Seattle branch offices. Smith Barney is an
administrator of Microsoft's ESOP.

K&T believes this wrongful conduct was not an isolated incident but rather
a course of conduct that was systemic in the handling of ESOP participant
accounts. Smith Barney was sanctioned for its mishandling of WorldCom
employee accounts pursuant to New York Stock Exchange ("NYSE") Hearing
Panel Decision 03-182, in connection with exercise-and-hold-recommendations
made to these employees. According to the panels findings, Smith Barney
gave certain customers written analysis that focused on the potential
advantages of the exercise-and-hold strategy, but did not adequately
describe the risks inherent in holding a concentrated position of volatile
shares on margin.

K&T has forwarded evidence to officials at the Enforcement Division of the
NYSE that demonstrates that Microsoft employees were presented with
misleading illustrations made by Smith Barney's Seattle branch offices that
recommended the exercise and hold strategy. This evidence was uncovered
during arbitration proceedings before the NYSE in case No.: 2002-011084
which is currently pending.

K&T, a nationally known securities arbitration law firm, presently
represents numerous investors throughout the country who have claims
against Smith Barney for securities fraud violations. The sole purpose of
this release is to investigate, on behalf of our clients, sales practice
violations of licensed brokers at Smith Barney Seattle offices. If you
wish to discuss this announcement or have information relevant to our
securities arbitration claims, please contact Lawrence L. Klayman at
1-888-997-9956 or visit us on the web at http://www.nasd-law.com.

Contact:
Lawrence L. Klayman
1-888-997-9956
http://www.nasd-law.com
SOURCE: Law Firm of Klayman & Toskes, P.A.