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To: Harvey Allen who wrote (23349)	5/17/1999 12:04:00 AM
From: puborectalis	Respond to of 24154

By Stuart Glascock Redmond, Wash 3:07 PM EST Fri., May 14, 1999 Microsoft Corp. financial executives explained their recent upsurge in investments and acquisitions during a brief 30-minute call with financial analysts Friday, calling these moves financially strategic, but not necessarily needed to promote Microsoft software. Greg Maffei, chief financial officer, acknowledged the software company's pattern of investing in companies holding infrastructure assets in the cable, Digital Subscriber Line, broadband, wireless and telecommunications areas. Some observers, notably Microsoft competitors, have accused the company of investing in broadband and communications companies in order to buy a seat at the table in a new market, one in which Microsoft operating systems have barely cracked. "One shibboleth we need to dispel is that we need to invest to sell our products," Maffei said. "That is just not true." Rather, the increased level of spending simply spells good financial opportunities for Microsoft, Maffei insisted. Microsoft was interested in forging strategic partnerships, not in evolving into "operating" any of these companies. "There seems to be nearly infinite demand for bandwidth," he said. In its highest-profile deal, Microsoft invested $5 billion in AT&T Corp. in a move that accelerated the telephone and cable giant's use of Windows CE set-top boxes from 5 million up to 10 million units. Also this month, Microsoft invested $600 million in Nextel Communications Inc. Last month, Microsoft pumped $30 million into high-speed Internet access provider Northpoint Communications and invested $38.6 million in Portugal Telecom. Editorial Quick Poll