REDMOND, Wash. — July 17, 2014 — Microsoft Corp. today announced a restructuring plan to simplify its organization and align the recently acquired Nokia Devices and Services business with the company’s overall strategy.

These steps will result in the elimination of up to 18,000 positions over the next year. Of the total, about 12,500 professional and factory positions will be eliminated through synergies and strategic alignment of the Nokia Devices and Services business acquired by Microsoft on April 25.

The actions associated with the plan are expected to be substantially complete by Dec. 31, 2014, and fully completed by June 30, 2015.

The company expects to incur pre-tax charges of $1.1 billion to $1.6 billion over the next four quarters, including $750 million to $800 million for severance and related benefit costs, and $350 million to $800 million of asset-related charges.

The plans were outlined in an email from Microsoft CEO Satya Nadella to Microsoft employees, and an email from Microsoft Executive Vice President Stephen Elop to Microsoft Devices Group employees. To read Nadella’s email, see http://www.microsoft.com/en-us/news/press/2014/jul14/07-17announcement1.aspx. To read Elop’s email, see http://www.microsoft.com/en-us/news/press/2014/jul14/07-17announcement2.aspx.

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services, devices and solutions that help people and businesses realize their full potential.

For more information, press only:

Rapid Response Team, Waggener Edstrom Communications, (503) 443-7070, rrt@waggeneredstrom.com

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers and titles were correct at time of publication, but may have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/news/contactpr.mspx.

Note about forward-looking statements. Certain statements in this press release, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in the section titled “Risk Factors” of our Forms 10-K and 10-Q. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

WASHINGTON — July 15 , 201 4 — At the Microsoft Worldwide Partner Conference (WPC) 2014 in Washington, D.C., yesterday, Microsoft Corp. (Nasdaq “MSFT”) honored its highest-performing Microsoft Dynamics partners for demonstrating exceptional levels of growth while delivering innovative solutions that have helped their customers drive their businesses forward.

“Each year, we recognize and honor a select group of Microsoft Dynamics partners from around the world for exemplary performance,” said Neil Holloway, corporate vice president, MBS Sales & Partners. “These award-winning partners inspire us by the standards they set and the impact they have on the business. Microsoft’s success is a direct result of their contribution, and it is an honor to recognize them for their achievements this past year and for their dedication and support of Microsoft Dynamics applications.”

At the pinnacle of the partners recognized, Hitachi Solutions America Ltd. was named the Microsoft Dynamics Global Outstanding Reseller of the Year, and Incadea GmbH and To-Increase BV were named the Global Outstanding ISVs of the Year. Microsoft honored 13 resellers with the 2014 Microsoft Dynamics Regional Reseller of the Year award, and nine independent software vendors (ISVs) were awarded the 2014 Microsoft Dynamics Regional ISV of the Year award. Several key criteria were considered when selecting Microsoft Dynamics Certified Partners for this special recognition, including outstanding sales performance, thorough technological expertise on Microsoft Dynamics products and services, a consistently high level of customer satisfaction, and feedback from Microsoft team members. The performance-based Microsoft Dynamics Regional Partner of the Year award recipients are as follows:

Reseller Awards

• Microsoft Dynamics Global Outstanding Reseller of the Year: Hitachi Solutions America Ltd.

• Microsoft Dynamics Reseller of the Year for Asia Pacific: Hands-On Management Pty Ltd.

• Microsoft Dynamics Reseller of the Year for Canada: ADXSTUDIO Inc.

• Microsoft Dynamics Reseller of the Year for Central and Eastern Europe: GMCS Verex

• Microsoft Dynamics Reseller of the Year for Greater China: Shanghai Wicresoft Co. Ltd.

• Microsoft Dynamics Reseller of the Year for France: ISATECH SASU

• Microsoft Dynamics Reseller of the Year for Germany: KUMAvision AG

• Microsoft Dynamics Reseller of the Year for India: Acxiom Consulting Pvt. Ltd.

• Microsoft Dynamics Reseller of the Year for Japan: Hitachi Solutions Ltd.

• Microsoft Dynamics Reseller of the Year for Latin America: Fesworld SA de CV

• Microsoft Dynamics Reseller of the Year for Middle East and Africa: AccTech System

• Microsoft Dynamics Reseller of the Year for United Kingdom: eBECS Ltd.

• Microsoft Dynamics Reseller of the Year for United States: mcaConnect LLC

• Microsoft Dynamics Reseller of the Year for Western Europe: HSO International
  

ISV Awards

• Microsoft Dynamics Global Outstanding ISVs of the Year: Incadea GmbH and To-Increase BV

• Microsoft Dynamics ISV of the Year for Asia Pacific: Flintfox International Ltd.

• Microsoft Dynamics ISV of the Year for Central and Eastern Europe: LS Retail EHF

• Microsoft Dynamics ISV of the Year for France: GFI Progiciels

• Microsoft Dynamics ISV of the Year for Germany: GOB Software & Systeme GmbH & Co. KG

• Microsoft Dynamics ISV of the Year for Middle East and Africa: Veripark

• Microsoft Dynamics ISV of the Year for United Kingdom: K3 Retail Solutions Ltd.

• Microsoft Dynamics ISV of the Year for United States: CoCentrix Inc.

• Microsoft Dynamics ISV of the Year for Western Europe: 4PS

During the recognition ceremony, a select group of Microsoft Dynamics partners were named to the 2014 Microsoft Dynamics Inner Circle and the 2014 Microsoft Dynamics President’s Club. The Microsoft Dynamics Inner Circle represents an elite group of the most strategic Microsoft Dynamics partners from around the world, with sales achievements that rank them in the highest echelon of the Microsoft Dynamics global network of partners. These partners are recognized for their exceptional overall company performance in delivering valuable solutions to Microsoft Dynamics customers. Microsoft Dynamics President’s Club honors high-performing Microsoft Dynamics partners with a commitment to customers reflected in their business success and growth.

A list of the Microsoft WPC 2014 and Regional Partner award winners and finalists can be found online at http://www.microsoft.com/presspass/presskits/partnernetwork/docs/DynamicsPartnerAwards.pdf.

A list of the 60 2014 Microsoft Dynamics Inner Circle award winners can be found online at http://www.microsoft.com/presspass/presskits/partnernetwork/docs/DynamicsInnerCircle.pdf.

A list of the 219 2014 Microsoft Dynamics President’s Club award winners can be found online at http://www.microsoft.com/presspass/presskits/partnernetwork/docs/DynamicsPresidentsClub.pdf.

About the Microsoft Worldwide Partner Conference

The Microsoft Worldwide Partner Conference provides Microsoft’s partner community the opportunity to interact with leaders from around the globe: innovative partners, Microsoft team members and tech visionaries. Partners have access to key marketing and business strategies, leadership, and information regarding specific customer solutions designed to help partners succeed in the marketplace. Along with informative learning opportunities covering sales, marketing, services and technology, the Worldwide Partner Conference is an ideal setting for to network with thousands of partners from across the world. Attendees come from over 150 countries and represent many of the most successful, top-tier Microsoft partners. More information can be found at http://www.digitalwpc.com.

About Microsoft Dynamics

At the heart of every successful business are the people who make things happen. Microsoft Dynamics designs modern business solutions that empower individuals with intuitive tools that allow them to do their best work. Our proactive, easy-to-use business applications adapt to the way people and systems work, enabling businesses to rapidly deploy and be forward-looking in an ever-changing world.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services, devices and solutions that help people and businesses realize their full potential.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers and titles were correct at time of publication, but may have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/news/contactpr.mspx.