MICROSOFT BLOCKS DISTRIBUTION OF DESKTOP LINUX IN SWEDEN

Judge Issues Temporary Restraining Order Halting LindowsOS Sales To Swedes



STOCKHOLM December 11, 2003 -- Lindows.com today announced that the
Microsoft Corporation (NASDAQ: MSFT) has filed an injunction in Stockholm,
Sweden against Lindows.com to prohibit the use of the marks "Lindows",
"Lindows.com", and "LindowsOS" in Sweden, pending a later decision on the
alleged trademark infringement.

"Microsoft is using lawsuits as a battering ram to smash Linux, to prevent
it from reaching retail stores," said Michael Robertson, chief executive
officer of Lindows.com. "We're hopeful that the Judge will see Microsoft's
true intentions are to sustain their monopoly and will grant Swedish
computer users the same choices that global computer users are benefiting
from. Microsoft tried this identical legal maneuver in the U.S., attempting
to block the growth of Linux with mainstream computer users. The U.S.
Courts denied their request multiple times and today more than 100
retailers sell Linux desktop and laptop computers, forcing Microsoft to
compete in the United States for the first time in many years, giving
consumers more choices and better prices."

The following court papers were received by Lindows.com. Lindows.com is
reviewing this matter and will respond accordingly in time. Those
interested in speaking with Michael Robertson, who will be in Stockholm
until 1:00 p.m. on December 11, may register to do so at
www.lindows.com/45signup.


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STOCKHOLM CITY COURT MINUTES Case No. T 21006-03
Section 7 10 December 2003 File No. 23
Handled in the absence of the parties


The court
Ulrika Carlehall, magistrate

Keeper of the minutes
Carlehall

Plaintiff
Microsoft Corporation, One Microsoft Way, Bldg 8/1078, Redmond, WA 98052,
USA
Counsel: Stefan Bernhard and Richard Jacobson, attorneys-at-law, Box 5402,
114 854 Stockholm

Defendant
Lindows.com Inc., 9333 Genesee Avenue 3rd Floor, San Diego CA 92121, USA

The Matter
Trademark infringement, now matter of injunction


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Microsoft has raised a claim against Lindows.com for trademark infringement
and requested that the city court prohibit Lindows.com to use the marks
LINDOWS, LINDOWS.COM and LINDOWS.OS, under a penalty of five million SEK.
Microsoft has requested that the city court will immediately, and without
Lindows.com being given the opportunity of a prior statement, decree in
accordance with the claim.

Having examined the documents the city court makes the following
DECISION

The city court prohibits, for the time until the case has finally settled
or anything else has been decided, Lindows.com to use LINDOWS, LINDOWS.COM
and LINDOWS.OS, as marks for products or services regarding operative
systems, under a penalty of three million (3 000 000) SEK.


Reasons

Microsoft is the holder of trademark registrations in Sweden among other
countries for the marks WINDOWS, WINDOWS NT, WINDOWS WAREHOUSE and WINDOWS
WORLD. The trademark WINDOWS is used worldwide by Microsoft to identify
Microsoft's operative systems.

Lindows.com is a US company registered in California. From the examination
submitted by Microsoft in the case it appears that Lindows markets and
sells an operative system under the name LINDOWS in many countries, Sweden
being one of them.

In support of its claim that an injunction be issued without Lindows's
prior statement Microsoft has stated among other things that on 10 and 11
December 2003, Lindows is carrying out a campaign in Stockholm to market
Lindows's operative system under the mark LINDOWS.

The city court makes the following judgement.

Microsoft has shown probable reasons for the alleged infringement. It may
reasonably be expected that Lindows will continue the infringement and
diminish the value of the sole right to the marks. A delay would imply a
risk for damage. On these grounds an injunction shall be issued immediately.

The security - three million SEK - which has been placed for any damage
that Lindows may suffer as a result of the prohibition may be considered as
acceptable.

The extent of the activities of Lindows or the economic status of the
company do not appear from the investigation in the case. Against this
background a penalty of three million SEK may be assumed to induce the
company to observe the prohibition.

The decision may be appealed specifically


(signed)

Ulrika Carlehall


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The city court issues a summons.


Lindows.com is ordered, not later than 26 January 2004, and by notification
to the city court, to appoint a proxy who is authorised to receive service
of process in the case on behalf of the company. The proxy shall be
domiciled in Sweden, in another state within the European Economic
Cooperation area or Switzerland.

Service of these minutes, summons in the case and the application for
summons with the attached documents shall be dispatched through the offices
of the plaintiff. Microsoft shall no later than 12 January 2004 submit a
certificate of service to the city court.


(signed)

Ulrika Carlehall
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