Notice to All Microsoft ESOP Participants Who Utilized Brokerage Firm Option Financing Programs from the Securities Arbitration Law Firm of Klayman &

30 March 2006

The Law Firm of Klayman & Toskes, P.A. ("K&T")(http://www.nasd-law.com) announced today that it has filed a lawsuit before the National Association of Securities Dealers, Inc. ("NASD") Case No. 2005-03068 on behalf of a former Microsoft (Nasdaq:MSFT) employee who lost $1,000,000 due to unsuitable recommendations by Merrill Lynch and its financial advisors. The claim seeks compensatory damages directly related to the unsuitable use of leverage, including affiliated bank loan programs, to exercise employee stock options.

The claim alleges that Merrill Lynch recommended to the Microsoft ESOP participant the use of alternative stock option financing through their affiliated bank. A conflict of interest existed from the recommended use of the bank financing program instead of traditional margin loans, as a direct result of greater profitability to the brokerage firm. The claim focuses on the firm's mismanagement of the client's portfolio, given the fact that there were risk management strategies available at the time of exercise that would have protected the value of the leveraged, concentrated portfolio.

The sole purpose of this release is to investigate, on behalf of our clients, sales practice violations of licensed brokers at various major brokerage firms. K&T is pursuing arbitration suits before the NYSE and the NASD for securities violations including the misuse of option finance programs, the misuse of stock option plans, failure to supervise, unsuitability claims, misrepresentation and material omissions of fact. We would greatly appreciate any information from Microsoft ESOP participants concerning the method or process used by various major brokerage firms with regard to clients' stock options and the handling of their accounts.

K&T represents investors throughout the nation in securities litigation and arbitration matters. If you wish to discuss this announcement or have information relevant to our securities arbitration claims, please contact Lawrence L. Klayman, Esquire of Klayman & Toskes, P.A., at 888-997-9956 or visit us on the web at http://www.nasd-law.com.

CONTACT: Klayman & Toskes, P.A.

(888) 997-9956

Source: primezone

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