Microsoft Judgment Against Matrix Computers

For Immediate Release

Microsoft Awarded Judgment Against Matrix Computers and Michael Knight

Dealer Selling Pirated Software

AUCKLAND, New Zealand - Monday, August 13, 2001 - The High Court of New Zealand has awarded Microsoft Corporation default judgment and costs against Michael Knight and Matrix Computers for copyright infringement. The judgment restricts Mr Knight and Matrix Computers (of which he is a director) or any of their agents from infringing Microsoft's copyright in the future. He has been ordered to pay costs, erase all unauthorised Microsoft programs on computers in his possession and deliver up any infringing copies of Microsoft programs, CDR drives and writers and any infringing manuals.

Matrix Computers was investigated following reports to the Microsoft Anti-Piracy Hotline (0800 747 229), whereby confirmed purchases of counterfeit Microsoft® Windows® 95 were obtained. Microsoft commenced proceedings in the High Court of New Zealand on 12 February 2001.

According to Microsoft's spokesperson, Vanessa Hutley, software piracy poses a tremendous threat to legitimate system builders, distributors and resellers. While honest resellers invest in services and customer loyalty they shoulder heavy costs because counterfeiters and 'hard disk loaders' sell illegitimate software at a fraction of the cost and have no client base to protect or infrastructure costs relating to services to worry about.

This creates an uneven playing field, lowering profits and ultimately costing honest resellers sales.

"Dishonest software dealers are duping innocent consumers into buying illegal software products. In doing so, they expose customers to the risks of buying illegal product which can also include the risk of viruses," said Hutley.

"In addition, counterfeit software may be missing key elements, which could render the program unusable. The illegal software is also ineligible for technical support, warranty protection and upgrades.”

A survey, conducted by an independent research firm International Planning & Research (IPR), and commissioned by the Business Software Alliance (BSA) and the Software & Information Industry Association (SIIA) estimated that New Zealand has a piracy rate of 28 per cent which translates into losses in excess of $US12 million.

Microsoft encourages all dealers and customers to report suspected cases of piracy to the Microsoft Anti-Piracy Hotline (0800 747 229). The net proceeds from all Microsoft piracy settlements in New Zealand are donated to the New Zealand community as part of the Microsoft Foundation campaign - a campaign designed to raise awareness in the community about the importance of protecting intellectual property rights.

About Microsoft 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.

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Microsoft and Windows 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.

For more information, press only: Carol Leishman, Communications Manager, Microsoft New Zealand, Email: carolle@microsoft.com , Ph: 09-357 5820 or 021 636 607

Andrew Constance, Account Director, August.One Communications, Email: andrew.constance@august.one.com.au Ph: Microsoft Press Office line: 61 2 8912 7050 or 09-357 5844

Microsoft Anti-Piracy Hotline: 0800 747 229

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft New Zealand Web page at on Microsoft's corporate information pages or for more information on software piracy visit http://www.microsoft.com/nz/piracy/

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