February 19, 2003

                            NEWS: Microsoft Acquires Connectix Virtual
Machine Technology

                            Move Eases Consolidation and Migration to New
Operating Systems for Customers

                            REDMOND, Wash.- February 19, 2003 - Microsoft
Corp. today announced it has acquired the virtual machine
                            solutions of privately held Connectix Corp., a
leading provider of virtualization software for Windows�- and
                            Macintosh-based computing. By deploying
supportable virtualization technology from Microsoft, customers can
                            easily migrate to next-generation operating
system platforms while leveraging investments in their existing
                            applications. In addition, Microsoft�s virtual
machine solutions will enable companies to consolidate server
                            resources, thereby reducing hardware capital
expenditures and operating costs.

                            �Our customers told us they wanted a
best-of-breed virtual machine solution that enables them to run their
                            legacy Windows applications, even as they
migrate to more modern operating system technology,� said Bill
                            Veghte, corporate vice president of the Windows
Server Group at Microsoft. �With this acquisition, we are
                            committed to delivering this solution for our
customers and providing the support they need both today and in
                            the future.�

                            �This agreement will enable advances in virtual
machine technology and applications through expanded
                            resources for research, development,
professional support and services,� said Roy K. McDonald, president and
                            CEO of Connectix. �We look forward to working
with Microsoft to provide a seamless product and support
                            transition for our current customers and believe
that Microsoft will produce the very best-in-class virtualization
                            solutions on Windows and Macintosh platforms for
a long time to come.�

                            Virtual Machine Solutions
                            Virtual PC for Mac provides seamless integration
of Windows on the Macintosh platform, enabling Mac OS
                            customers to run Windows-based applications,
access PC networks, use Windows-only Internet applications and
                            share files with PC-based colleagues. Virtual PC
for Mac will join the Macintosh Business Unit�s mix of
                            award-winning Mac products, such as Office v. X,
Entourage� X and Internet Explorer for Mac.

                            �Adding Virtual PC to its product portfolio is
yet another example of Microsoft�s continued commitment to the
                            Mac platform,� said Ron Okamoto, vice president
of Worldwide Developer Relations at Apple Computer Inc.
                            �For years, Virtual PC has helped people who
want to own a Mac but need to run legacy PC applications. We�re
                            glad to see Virtual PC go into such good hands.�

                            Virtual PC for Windows provides Windows desktop
customers with an additional tool for migrating to Windows XP
                            or to Windows 2000 Professional, supports legacy
applications, and enables a range of other uses for application
                            development, call centers, technical support,
education and training.

                            Virtual Server addresses customer demand for an
application migration solution based on virtualization and
                            supported by Microsoft. In addition, it provides
significant cost efficiencies by consolidating multiple Windows NT�
                            4.0 servers and their applications onto a single
Windows Server system. The Virtual Server product is undergoing
                            beta testing and is expected to be released
before the end of 2003.

                            "Use of Virtual PC for Windows in the past year
has resulted in more than $2 million in savings for our company,
                            and we hope to save even more with Virtual
Server playing a key role in our server consolidation efforts,� said
                            Randy Robinson, vice president of Information
Technology at UnumProvident. �We are very pleased that
                            Microsoft is bringing these solutions on board,
and we look forward to benefiting from the support that Microsoft
                            will provide for such critical legacy migration
and server consolidation technologies.�

                            Product and Support Availability
                            The transaction was completed as of Feb. 18,
2003; specific terms of the agreement were not disclosed.
                            Microsoft will continue development of virtual
machine solutions from Connectix and will integrate them into the
                            Windows and Mac product portfolios. During the
six-month transition period, Connectix will continue to sell and
                            support Virtual PC for Windows, Virtual PC for
Mac and Virtual PC for OS/2 products through its current distribution
                            channel partners. Virtual Server will be
available as a preview release on the Microsoft� Web site April 15.

                            Additional product and technology information
can be found at the following sites:
                            Virtual PC for Mac,
http://www.microsoft.com/mac/;
                            Virtual PC for Windows,
http://www.microsoft.com/windowsxp/virtualpc/; and
                            Virtual Server,
http://www.microsoft.com/windowsserver2003/evaluation/news/bulletins/vmnews.mspx.

                            Founded in 1975, Microsoft (Nasdaq �MSFT�) is
the worldwide leader in software, services and Internet
                            technologies for personal and business
computing. The company offers a wide range of products and services
                            designed to empower people through great
software � any time, any place and on any device.

                            Microsoft, Windows, Windows NT and Entourage are
either registered trademarks or trademarks of Microsoft Corp. in the
                            United States and/or other countries. The names
of actual companies and products mentioned herein may be the
                            trademarks of their respective owners.

"Dennis B. Swaney" wrote:

> At 12:51 -0600 2/26/03, Shawn King wrote:
> >On 2/25/03 11:18 PM, "Dennis B. Swaney" <[EMAIL PROTECTED]> wrote:
> >
> >>  BTW, have you heard that Microsoft has bought out VPC from Connectix?
> >>  Also, Connectix will no longer be supporting their classic Mac OS
> >>  products after September supposedly.
> >
> >No one at Connectix has said any such thing.
> >
>
> It's on their web page, or at least it was last night.
>
> Dennis
>
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