March 12, 2004

Lindows-Free Luxembourg, a maker of low-cost computers running Linux software, on Friday said it had halted operations in the Netherlands, Belgium and Luxembourg
in the latest round of its cat-and-mouse legal battle with Microsoft.

Lindows said it had withdrawn from the three countries after it received legal papers demanding that it pay a fine of up to 100,000 euros a day for
failing to comply with an earlier court order.

Microsoft (MSFT) has pursued Lindows in courts around the world, alleging trademark infringement of its Windows brand name by Lindows, which offers a
Linux alternative called LindowsOS.



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