MICROSOFT CORP — Director's Dealing 2010

Dec 20, 2010

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: MICROSOFT CORP (MSFT)
CIK: 0000789019
Period of Report: 2010-12-17

Reporting Person: MUNDIE CRAIG J (Chief ResearchStrategy Officer)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2010-12-17	Common Stock	M	248037	$25.1438	Acquired	592035	Direct
2010-12-17	Common Stock	S	248037	$28.0004	Disposed	343998	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2010-12-17	Employee Stock Option (right to buy)	$25.1438	M	248037	Disposed	2011-02-20	Common Stock (248037)	Direct

Footnotes

F1: The exercise of the employee stock option and the sale of the underlying shares were made under a 10b5-1 plan previously adopted by the reporting person.

F2: This transaction was executed in multiple trades at prices ranging from $28.00 to $28.02. The price reported above reflects the weighted average purchase price. The reporting person hereby undertakes to provide upon request to the SEC staff, the issuer or a security holder of the issuer full information regarding the number of shares and prices at which the transactions were effected.