For Microsoft, 1997 is filled with big moves as the Company announces the immediate availability of Office 97, we sign an agreement to acquire WebTV Networks for approximately $425 million

in stock and cash and Microsoft's Internet Explorer 4.0 is released to critical acclaim and enormous customer demand.

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1997

1997 Revenue/Headcount

The 1997 fiscal year-end sales total $11,360,000,000. The 1997 fiscal Year employee headcount totals 22,232 people.

Official Subsidiaries Launched: Microsoft Dominicana, S.A., Microsoft Egypt, Limited Liability Company

January 16, 1997

Microsoft announces the immediate availability of Office 97, the new version of the world's best-selling productivity suite, which integrates the ease of intelligent applications with the power of the Web.

February 7, 1997

Microsoft unveils its ActiMates™ early learning system. The system is a combination of products that work with the personal computer or the VCR. Microsoft, through a licensing agreement with The Lyons Group, presents Barney® as the first ActiMates interactive

character.

February 24, 1997

DreamWorks SKG is using Softimage® 3D, Softimage Eddie and Mental Ray to create its new film project "Shrek." Driven by DreamWorks co-founder Jeffrey Katzenberg, "Shrek" will be a milestone production in content creation and the first full-length

computer-generated film to use motion capture as its primary tool for character animation.

March 18, 1997

Leading software vendors and content providers, including Borland International Inc., The Carsey-Werner Company, Macromedia Inc., the Powersoft division of Sybase Inc., Time Warner Inc., Wired Digital and ZDNet announced their intent to support Microsoft®

Dynamic HTML in future products and Web Sites. M