FINANCIAL HIGHLIGHTS - EURO

(In millions, except earnings per share)

Year Ended June 30

1999

2000

2001 ⁽²⁾

2002 ⁽³⁾

2003 ⁽⁴⁾

Revenue

€ 19,068

€ 22,467

€ 28,041

€ 32,003

€ 31,334

Operating income

9,666

10,771

12,992

13,438

12,867

Income before accounting change

7,517

9,220

8,559

8,833

9,728

Net income

7,517

9,220

8,143

8,833

9,728

Diluted earnings per share before

  accounting change ⁽¹⁾

0.69

0.83

0.76

0.79

0.90

Diluted earnings per share ⁽¹⁾

0.69

0.83

0.73

0.79

0.90

Cash dividends per share

          -  

          -  

           -  

           -  

0.08

Cash and short-term investments

16,713

25,159

36,748

39,031

42,400

Total assets

37,158

54,651

68,415

68,309

68,785

Stockholders' equity

27,575

43,734

54,994

52,691

52,749

(1)  Earnings per share have been restated to reflect a two-for-one stock split in February 2003.

(2)  Fiscal year 2001 includes an unfavorable cumulative effect of accounting change of €416 million or €0.03 per diluted share, reflecting the adoption of SFAS No. 133, and €5.32 billion (pre-tax) in impairments of certain investments, primarily cable and telecommunication investments.

(3)  Fiscal year 2002 includes €4.87 billion (pre-tax) in impairments of certain investments, primarily related to our AT&T investment and further declines in the fair values of European cable and telecommunications holdings, and a €1.41 billion (pre-tax) gain on the sale of Expedia, Inc.

(4)  Fiscal year 2003 includes €1.12 billion (pre-tax) in impairments of certain investments.

* Cash and short-term investments, Total assets, and Stockholder's equity are translated using the June 30 exchange rate.  All other items have been translated using the average rate for the fiscal year.

This Consolidated Financial Highlights table has been converted into EU currency. This presentation is intended only to provide additional information.  These financial highlights are not a complete presentation of the Company's financial position and results of operations.  A complete set of the Company’s primary financial statements prepared in accordance with generally accepted accounting principles in the United States of America, and included in filings with the United States Securities and Exchange Commission, can be found in The Microsoft 2003 Annual Report to Shareholders (including Form 10-K) which is available on this Web site. Copies may also be obtained by writing to the Company.