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TECHNOLOGY - July 29, 1995

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<i> Times Staff and Wire Reports</i>

Speculation About Lawsuit Clips Microsoft Stock: Investors betting that the Justice Department will soon file suit to delay the release of Microsoft Corp.’s Windows 95 software caused the shares to tumble $3.875 to $92.625. Windows 95 is scheduled to be shipped Aug. 24 unless the department can persuade a federal judge to block its release. The department has been investigating Microsoft’s intention to include an on-line information service, Microsoft Network, as part of Windows 95. On-line service providers such as America Online, CompuServe and Prodigy have complained that bundling the network with Windows 95 would give the personal computer giant an unfair advantage in their market. Analysts are predicting that Windows 95 will be among the most successful products in the history of PCs, projecting that 30 million copies will be sold by year’s end. Microsoft hopes that every copy will include Microsoft Network.

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