UNITED STATES DISTRICT COURT
                        FOR THE DISTRICT OF COLUMBIA

     _________________________________________________________________

   )
                                      )
                        UNITED STATES OF AMERICA, )
                                      )
                                Plaintiff, )
                                      )
                    v. ) Civil Action No. 98-1232 (TPJ)
                                      )
                          MICROSOFT CORPORATION, )
                                      )
                                Defendant. )
                                      )
     _________________________________________________________________


                                      )
                        STATE OF NEW YORK, et al., )
                                      )
                                Plaintiffs )
                                      )
                                    v. )
                                      )
                          MICROSOFT CORPORATION, )
                                      )
                                Defendant )
                                      )
     _________________________________________________________________

   ) Civil Action No. 98-1233 (TPJ)
                                      )
                          MICROSOFT CORPORATION, )
                                      )
                                    v. )
                                      )
                         Counterclaim-Plaintiff, )
                                      )
                         ELLIOT SPITZER, attorney )
                         general of the State of )
                        New York, in his official )
                            capacity, et al., )
                                      )
                         Counterclaim-Defendants. )
                                      )
     _________________________________________________________________


                             CONCLUSIONS OF LAW

   The United States, nineteen individual states, and the District of
   Columbia ("the plaintiffs") bring these consolidated civil enforcement
   actions against defendant Microsoft Corporation ("Microsoft") under