New Chief at Microsoft

Microsoft Wednesday experienced top-level management changes as Chief
Operating Officer Bob Herbold, 58, retired and Rick Belluzzo, 47, was
promoted to president and COO.

Herbold intends to stay with Microsoft on a part-time basis, representing
the company in industry, government and customer activities, noted Steve
Ballmer, CEO.

Prior to joining Microsoft in September 1999, Belluzzo was CEO of Silicon
Graphics Inc. He had previously been the executive vice president of
Hewlett-Packard Co., where he was responsibility for HP’s printer, personal
computer, and computer systems and services businesses.

Since joining Microsoft, Belluzzo’s team worked to make MSN the most
visited Web site on the Net and was additionally involved with the creation
of the company’s Xbox video game, the Ultimate TV service and the .NET
services division. He also has been influential in the development of
next-generation wireless technologies.

In his new position, Belluzzo intends to guide the company’s business
strategy and direct business operations, sales, marketing and business
development, as well as Microsoft’s emerging non-PC businesses.

“Microsoft is very well positioned for growth,” he said. “We’ve got an
incredible year of new product and service launches ahead of us, and we’re
investing in next-generation technologies.

“I’m excited about working even more closely with my colleagues on the
senior leadership team to fine-tune our business processes and drive growth
opportunities in our core businesses and in emerging technologies and
services,” he said.

Bill Gates, chairman of Microsoft, lauded the management changes. “Bob’s
steady hand and strong management skills over the past seven years have
played a big part in Microsoft becoming a stronger, more mature and more
cost-effective company,” he said. “We have been fortunate to have such a
strong senior management team, and Rick’s proven management style will be a
big plus in the years ahead.”

In related news, Deborah Willingham, 44, was promoted to senior vice
president for Human Resources, and John Connors, senior vice president of
finance and administration and chief financial officer, assumes
responsibility for Microsoft’s Information Technology Group and for
manufacturing/licensing operations in addition to his existing
responsibilities.

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