Z-NIX Settles Software Piracy Lawsuit With Microsoft
Settlement Vindicates Microsoft Infringement Claims

REDMOND, Wash.--April 28, 1993--Microsoft Corporation announced today that
a settlement agreement has been reached in its software piracy lawsuit
against former Microsoft OEM licensee Z-Nix Company, Inc., President Jimmy
Chen and three of its distributors. The lawsuit was originally filed by
Microsoft in June 1992 against Z-Nix for copyright and trademark
infringement and breach of contract. It followed a two month
investigation, during which Microsoft alleged that it uncovered Z-Nix's
massive illegal distribution of the Microsoft Windows operating system
version 3.1.

"The settlement vindicates our infringement claims, as well as our
termination of Z-Nix's license agreement last year," said Jim Lowe,
corporate attorney for Microsoft. "It also reflects Microsoft's consistent
position that Z-Nix's antitrust counterclaims had no merit." Specific
settlement terms, including any monetary component, are confidential.

Microsoft terminated Z-Nix' s license agreement last summer on the basis of
evidence that hundreds of thousands of copies of Microsoft Windows
software were being illegally distributed under the Z-Nix label. In an
effort to avoid litigation, Microsoft attempted to conduct an audit of
Z-Nix, as permitted by its license agreement. After Z-Nix refused to allow
access to its records, Microsoft filed the lawsuit in the U.S. District
Court in Los Angeles to protect its copyrights and trademarks. Z-Nix's
continuing activities after a federal judge imposed a restraining order
resulted in its and Jimmy Chen's being held in contempt of court with
monetary damages awarded to Microsoft.

Microsoft also concluded settlement agreements with three Z-Nix
distributors, Jactech Corporation, Max Group Corporation, and PC Man,
Inc., also on confidential terms. "We will continue to bring legal actions
against distributors and resellers of unauthorized Microsoft software,
because these vendors also incur liability under federal copyright and
trademark laws," Lowe said.

Microsoft noted that it is continuing its worldwide investigation of the
counterfeit Windows product in Z-Nix packaging because of the product's
persistent availability. "Z-Nix lost all rights to reproduce or distribute
Microsoft Windows so long ago that all Microsoft software bearing the
Z-Nix name available in the marketplace today, with or without a Z-Nix
mouse, should be considered counterfeit," Lowe said. Any consumers or
resellers having questions or concerns about the legitimacy of Microsoft
products should contact the Microsoft Piracy Hotline, (800) NOCOPYN.

Founded in 1975, Microsoft (NASDAQ "MSFT") is the worldwide leader in
software for personal computers. The company offers a wide range of
products and services for business and personal use, each designed with
the mission of making it easier and more enjoyable for people to take
advantage of the full power of personal computing every day.

Microsoft Corp, One Microsoft Way, Redmond, WA 98052-6399
206-882-8080,  fax: 206-93MSFAX

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