FOR IMMEDIATE RELEASE                                          AT
FRIDAY, AUGUST 1, 1997                             (202) 616-2771
                                               TDD (202) 514-1888


  ANTITRUST DIVISION STATEMENT REGARDING MICROSOFT/WEB TV MERGER


     The Department of Justice announced today that, after a
thorough investigation, the Department's Antitrust Division has
closed its investigation of Microsoft's proposed acquisition of
WEB TV.  The investigation confirmed that a number of other
companies, several of whom are significant participants in the
computer or consumer electronics industries, have or will soon
enter the market with competitive products and alternative
technologies.  Therefore, the Division concluded that it would
not challenge the transaction.


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