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May 12, 1999

COURT: MICROSOFT PERMATEMPS CAN PURCHASE STOCK AT DISCOUNT

A federal appeals court has handed a major victory to Microsoft's long-term
contractors, or permatemps, by ruling that they have the right to
participate in
the company's Employee Stock Purchase Plan (ESPP). The ESPP allows employees to
purchase company stock at a 15 percent discount during specified times each
year. 

The ruling, which came down late Wednesday afternoon, also overturned an
earlier
decision by Federal District Judge Carolyn Dimmick that had reduced the size of
the class to several hundred contract employees who worked at Microsoft between
1987 and 1990. Wednesday's decision restored the appeals court's previous
class definition -- a broader definition that covers all past and present
common-law employees of Microsoft and easily puts the class size at several
thousand people. 

"We are very happy the court restored the class to its original size," said
Stephen Strong, an attorney representing the plaintiffs. "Thousands of
Microsoft
workers have worked full-time for years without employee benefits. This will
allow them to obtain the employee recognition they are due."

To read the full report, see:
http://www.washtech.org/roundup/courts/051299_vizcaino.html


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