May 16, 2002

Microsoft loses appeal to shut down Lindows.com

A Seattle judge, who had been asked by
Microsoft to shutdown Lindows.com and block the 35 person
company from advertising their competing program, LindowsOS, issued a
denial to the software giant this week.

Judge Coughenour wrote in a seven-page ruling that after "examining the
evidence with a sharper focus" news articles, advertisements,
competitors and dictionary definitions demonstrated that the "consuming
public used the terms 'windows,' 'window' and 'windowing' to refer to a
type of graphical user interface." The Western Washington District
Judge also wrote that through "its own use of the evidence" Microsoft
essentially admits that "windows" is a generic term. The Court
bolstered that finding by citing Microsoft's own computer dictionary
definition, as well as quotes from then Vice President of Marketing,
Steve Ballmer, in discussing the introduction of Windows 1.0. To read
the document in its entirety, visit www.lindows.com/opposition.

Microsoft had contended that the Court had a "fundamental
misapprehension" and had "reached an incorrect result" in an earlier
ruling in which the Court stated that Microsoft had raised "serious
questions" about the validity of its windows trademark and refused to
halt Lindows.com from using both Lindows.com and LindowsOS for its
operating system name.

In the latest ruling, the Court found that it "did not err in either
its legal or factual analysis when it denied Microsoft's motion for a
preliminary injunction" against Lindows.com (http://www.lindows.com).

"Microsoft's attempt to intimidate Lindows.com through legal attacks is
part of their ongoing war waged against any potential competitor," said
Lindows.com, Inc., Chief Executive Officer Michael Robertson. "This
time their strategy has not only failed, but has completely backfired
with their windows trademark now being put at risk and on trial. Our
goal is to bring choice back to computers in spite of Microsoft's
bullying tactics. If we have to go to trial where the word "windows"
will be declared generic, we're prepared to do so."

The complete ruling along with selected quotes from the document can be
found at http://www.lindows.com/opposition. A jury trial on this issue
is slated for April of 2003.

A new version of LindowsOS will be released in the June time frame and
will be available to a select group, the Lindows.com Insiders.
Lindows.com has released two Sneak Previews to their Insiders
(http://www.lindows.com/signup). The Sneak Previews are not fully
complete products, but showcase many of the unique features such as a
"Friendly-Install" alongside an existing Microsoft Windows operating
system and "Click-N-Run," a feature that allows users to download and
install high-quality software programs with one-click.

The final version of LindowsOS will go on sale later this year for
one-third of the cost of a comparable Microsoft offering. For more
information see http://www.lindows.com/products.

To receive Lindows.com press releases via email signup at
http://www.lindows.com/mailing.

About Lindows.com, Inc.

Lindows.com is a consumer company that brings choice to computer users.
Lindows.com, Inc. uses the latest technology to create affordable,
stable, user-friendly products. Lindows.com, Inc. was started by
Michael Robertson, founder and former CEO of MP3.com. At the core of
Lindows.com is a new operating system called LindowsOS, a modern,
affordable, easy-to-use operating system with Click-N-Run?, a feature
that allows users to download high-quality software with one-click of
their mouse.

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