REDMOND, Wash. — April 28, 2014 — Microsoft Corp. and its hardware partners on Monday unveiled a range of devices at various price points to help U.S. public school districts make the digital transition. The devices included in today’s pricing announcement are lightweight enough to conduct research and take assessments, while at the same time robust enough to create rich media, develop code and build complex applications. With devices starting under $300, the effort is a part of Microsoft’s global YouthSpark initiative to empower youth through technology and is further evidence of its commitment to providing a range of devices, training and services to teachers and students. Microsoft’s investment is in partnership with President Obama’s ConnectED initiative to advance technology and learning in the classroom.

In addition, Microsoft exam delivery provider Certiport Inc. is providing certification exams worth over $5 million following students’ completion of Microsoft IT Academy training. The Microsoft IT Academy provides a complete technology and certification training solution for schools, enabling students to learn the skills needed for today’s workforce, and is part of Microsoft’s $1 million investment in reaching the 2,000 highest needs schools in the U.S.

“To move students into the future, they need the skills and resources that can bring learning to life and prepare them for the workforce,” said Margo Day, vice president, U.S. Education, Microsoft. “Through Microsoft’s commitment, we are helping bridge the technology skills gap that exists among many students today by providing tools and learning resources that give all students a world-class education and help teachers better use technology in the classroom. Working with our partners to lower costs and provide affordable devices is just one step in the process.”

To fit the various needs of schools, devices from Microsoft partners include a range of form factors, from various-sized tablets to full laptops. Device options include the Acer Travelmate TMB113-E, ASUS Transformer Book T100, Dell Venue 11 Pro, FUJITSU STYLISTIC® Q704, HP 210 Notebook PC and HP ElitePad 1000, Lenovo ThinkPad 11e, Toshiba Satellite® NB15t, and a new student device from Panasonic scheduled to launch at ISTE 2014. All of the devices are Common Core testing compliant and feature Windows 8.1. This special device pricing program is delivered through technology partners that serve K–12 schools. Hardware and device manufacturers will now be able to make specially priced devices available to all U.S. public schools through this offer. Schools can determine the best device for them by visiting the ConnectED devices page, http://www.microsoft.com/eduwindows.

In order to effectively use technology to bolster student learning and outcomes, teachers must be properly trained to weave technology into classroom curriculum. Miami-Dade County Public Schools is a great example of rolling out its 1:1 program effectively. The district recently announced the purchase of over 47,000 HP notebook PCs and tablets for students and teachers. In addition, Microsoft will be offering digital transition training to 700 Miami-Dade teachers in the coming weeks with additional training for 1,000 more teachers over the summer. Across the district, over 350,000 students can download Office 365 via the Student Advantage benefit, which allows Office 365 school customers to access Office 365 ProPlus for all its students at no additional cost. This will support a consistent experience between classroom and home, and supports the district’s bring-your-own-device (BYOD) efforts. In addition, the district is providing Internet access and laptops through EveryoneOn for over 1,000 high-need homes and it is about to begin implementing Microsoft IT Academy in select elementary, middle and high schools.

“Our No. 1 priority is to help students graduate from high school, well prepared to succeed in college or the career of their choosing. That is no simple undertaking with more than 350,000 students,” said Alberto Carvahlo, superintendent, Miami-Dade County Public Schools. “Through our work with Microsoft, we’re providing the technology, services and training support our teachers and students need to gain the skills that will ultimately help accomplish our goal, but on top of that, Microsoft IT Academy will give students the certifications that will help get them the jobs of their dreams.”

Schools using Microsoft solutions to improve student outcomes include Clear Creek School District, Fresno Unified School District and the Kentucky Department of Education.

This latest announcement of devices and skills training services demonstrates Microsoft’s progress against President Obama’s ConnectED goals of connecting U.S. schools to the digital age within five years by providing cost-efficient devices and services. In February of this year, Microsoft committed to offering the following elements:

• Communication and collaboration tools with Office 365 Education

• Teacher training and resources through the Microsoft Educator Network, formerly Partners in Learning Network

• Ad-free search with Bing in the Classroom

• Student training and skills development via Microsoft IT Academy

• A powerful and flexible operating system with Windows 8.1 Pro

• Broadband as a critical component to connected learning through Microsoft’s nonprofit partner EveryoneOn

School participation and eligibility

All U.S. public schools are eligible for this unique education offer and can contact their technology reseller or Microsoft for additional details or to access an official letter of eligibility. More information on the offer can also be found at http://www.microsoft.com/education/ConnectED.

About Microsoft in Education

At Microsoft, we are deeply committed to working with governments, communities, schools and educators to use the power of information technology to deliver technology, services and programs that provide anytime, anywhere learning for all. Since 2003, Microsoft has partnered with educators to impact more than 207 million students in 119 countries to date. Through TEACH.Org, Microsoft and other partners, candidates are provided with free access to the online tools and resources necessary to pursue a career in teaching. For more information: http://www.microsoft.com/education.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services 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.

Satya Nadella & Stephen Elop share a moment together April 24, 2014 Microsoft CEO Satya Nadella (left) and executive vice president of Microsoft Devices Group Stephen Elop share a moment as the deal that brings together Microsoft and the Nokia Devices and Services business closes today.

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REDMOND, Wash. — April 25 , 2014 — Microsoft Corp. announced it has completed its acquisition of the Nokia Devices and Services business. The acquisition has been approved by Nokia shareholders and by governmental regulatory agencies around the world. The completion of the acquisition marks the first step in bringing these two organizations together as one team.

“Today we welcome the Nokia Devices and Services business to our family. The mobile capabilities and assets they bring will advance our transformation,” said Microsoft CEO Satya Nadella. “Together with our partners, we remain focused on delivering innovation more rapidly in our mobile-first, cloud-first world.”

Reporting to Nadella is former Nokia President and CEO Stephen Elop, who will serve as executive vice president of the Microsoft Devices Group, overseeing an expanded devices business that includes Lumia smartphones and tablets, Nokia mobile phones, Xbox hardware, Surface, Perceptive Pixel (PPI) products, and accessories. Microsoft welcomes personnel with deep industry experience in more than 130 sites across 50 countries worldwide, including several factories that design, develop, manufacture, market and sell a broad portfolio of innovative smart devices, mobile phones and services. As part of the transaction, Microsoft will honor all existing Nokia customer warranties for existing devices, beginning April 25, 2014.

Windows Phone is the fastest-growing ecosystem in the smartphone market, and its portfolio of award-winning devices continues to expand. In the fourth quarter of 2013, according to IDC, Windows Phone reinforced its position as a top three smartphone operating system and was the fastest-growing platform among the leading operating systems with 91 percent year-over-year gain.[1] Furthermore, with the Nokia mobile phone business, Microsoft will target the affordable mobile devices market, a $50 billion annual opportunity,[2] delivering the first mobile experience to the next billion people while introducing Microsoft services to new customers around the world.

Microsoft will continue to deliver new value and opportunity, and it will work closely with a range of hardware partners, developers, operators, distributors and retailers, providing platforms, tools, applications and services that enable them to make exceptional devices. With a deeper understanding of hardware and software working as one, the company will strengthen and grow demand for Windows devices overall.

As with any multinational agreement of this size, scale and complexity, Microsoft and Nokia have made adjustments to the deal throughout the close preparation process. As announced previously, Microsoft will not acquire the factory in Masan, South Korea, and the factory in Chennai, India, will stay with Nokia due to the tax liens on Nokia’s assets in India that prevent transfer. As a result, Microsoft will welcome approximately 25,000 transferring employees from around the world.

More information about Microsoft’s expanded family of devices and services is available here.

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

Microsoft refers to Microsoft Corp. and its affiliates, including Microsoft Mobile Oy, a subsidiary of Microsoft. Microsoft Mobile Oy develops, manufactures and distributes Lumia, Asha and Nokia X mobile phones and other devices.

For further information regarding risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website.

All information in this release is as of April 25, 2014. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

1 IDC Worldwide Quarterly Mobile Phone Tracker, February 2014

2 Strategy Analytics Inc.

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 the Microsoft Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/news/contactpr.mspx.

REDMOND, Wash. — April 24, 2014 — Microsoft Corp. today announced revenue of $20.40 billion for the quarter ended March 31, 2014. Gross margin, operating income, net income, and diluted earnings per share for the quarter were $14.46 billion, $6.97 billion, $5.66 billion, and $0.68 per share, respectively.

The following table reconciles our financial results reported in accordance with generally accepted accounting principles (“GAAP”) to non-GAAP financial results for the prior year. We have provided this non-GAAP financial information to aid investors in better understanding the company’s performance. Management commentary regarding performance and growth refers to non-GAAP financial results.

April 24, 2014

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“This quarter’s results demonstrate the strength of our business, as well as the opportunities we see in a mobile-first, cloud-first world. We are making good progress in our consumer services like Bing and Office 365 Home, and our commercial customers continue to embrace our cloud solutions. Both position us well for long-term growth,” said Satya Nadella, chief executive officer at Microsoft. “We are focused on executing rapidly and delivering bold, innovative products that people love to use.”

“We delivered solid, broad-based financial results driven by strong execution and continued cost discipline,” said Amy Hood, executive vice president and chief financial officer at Microsoft. “We are focusing our resources to drive growth and long-term shareholder value.”

Devices and Consumer revenue grew 12% to $8.30 billion.

• Windows OEM revenue grew 4%, driven by strong 19% growth in Windows OEM Pro revenue.
  

• Office 365 Home now has 4.4 million subscribers, adding nearly 1 million subscribers in just three months.
  

• Microsoft sold in 2.0 million Xbox console units, including 1.2 million Xbox One consoles.
  

• Surface revenue grew over 50% to approximately $500 million.
  

• Bing U.S. search share grew to 18.6% and search advertising revenue grew 38%.
  

Commercial revenue grew 7% to $12.23 billion.

• Office 365 revenue grew over 100%, and commercial seats nearly doubled, demonstrating strong enterprise momentum for Microsoft’s cloud productivity solutions.
  

• Azure revenue grew over 150%, and the company has announced more than 40 new features that make the Azure platform more attractive to cloud application developers.
  

• Windows volume licensing revenue grew 11%, as business customers continue to make Windows their platform of choice.
  

• Lync, SharePoint, and Exchange, our productivity server offerings, collectively grew double-digits.
  

“Our products and services continue to deliver differentiated business value to our customers, and we continue to win share in areas like cloud services, data platform, and infrastructure management,” said Kevin Turner, chief operating officer at Microsoft. “Our SQL Server business grew double-digits again this quarter, and with the announcements of SQL 2014 and Power BI for Office 365, we offer a unique, comprehensive, end-to-end data and analytics solution.”

Nokia

Microsoft expects to close the acquisition of the Nokia Devices and Services business on April 25, 2014.

Business Outlook

Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

Webcast Details

Satya Nadella, chief executive officer, Amy Hood, executive vice president and chief financial officer, Frank Brod, chief accounting officer, John Seethoff, deputy general counsel, and Chris Suh, general manager of Investor Relations, will host a conference call and webcast at 2:30 p.m. PDT (5:30 p.m. EDT) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/investor/. The webcast will be available for replay through the close of business on April 24, 2015.

Adjusted Financial Results and Non-GAAP Measures

During the third quarter of fiscal year 2013, GAAP revenue, gross margin, operating income, and diluted earnings per share included the net revenue recognition for the Windows Upgrade Offer, the Office Deferral, the Video Game Deferral, and the European Commission Fine. These items are defined below. In addition to these financial results reported in accordance with GAAP, we have provided certain non-GAAP financial information to aid investors in better understanding the company’s performance. Presenting these measures without the impact of these items gives additional insight into operational performance and helps clarify trends affecting the company’s business. For comparability of reporting, management considers this information in conjunction with GAAP amounts in evaluating business performance. These non-GAAP financial measures should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Non-GAAP Definitions

Revenue deferred on sales of Windows 7 with an option to upgrade to Windows 8 Pro at a discounted price (“Windows Upgrade Offer”).

Revenue deferred on sales of the previous version of the Microsoft Office system with a guarantee to be upgraded to the new Office at minimal or no cost and pre-sales of the new Office to OEMs and retailers before general availability (collectively, the “Office Deferral”).

Revenue deferred on sales of video games with the right to receive specified software upgrades/enhancements (“Video Game Deferral”).

Fine of €561 million ($733 million) assessed by the European Commission in 2013 for violation of an order to provide a browser choice screen with Internet Explorer on PCs sold in Europe (“European Commission Fine”).

About Microsoft

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

Forward-Looking Statements

Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

• intense competition in all of Microsoft’s markets;
  

• increasing focus on services presents execution and competitive risks;
  

• significant investments in new products and services that may not be profitable;
  

• acquisitions, joint ventures, and strategic alliances, including our acquisition of the Nokia Devices and Services business, may have an adverse effect on our business;
  

• Microsoft’s continued ability to protect its intellectual property rights;
  

• claims that Microsoft has infringed the intellectual property rights of others;
  

• the possibility of unauthorized disclosure of significant portions of Microsoft’s source code;
  

• cyber-attacks and security vulnerabilities in Microsoft products that could reduce revenue or lead to liability;
  

• disclosure of personal data that could result in liability and harm to Microsoft’s reputation;
  

• outages, data losses, and disruptions of our online services if we fail to maintain an adequate operations infrastructure;
  

• government litigation and regulation that may limit how Microsoft designs and markets its products;
  

• Microsoft’s ability to attract and retain talented employees;
  

• delays in product development and related product release schedules;
  

• adverse economic or market conditions may harm our business;
  

• adverse results in legal disputes;
  

• unanticipated tax liabilities;
  

• our hardware and software products may experience quality or supply problems;
  

• impairment of goodwill or amortizable intangible assets causing a charge to earnings;
  

• exposure to increased economic and regulatory uncertainties from operating a global business; and
  

• catastrophic events or geo-political conditions may disrupt our business.
  

For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/investor/.

All information in this release is as of April 24, 2014. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

For more information, financial analysts and investors only:

Chris Suh, general manager, Investor Relations, (425) 706-4400

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 since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. PDT conference call with investors and analysts, is available at http://www.microsoft.com/investor/.