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Lindows.com Gains Double Victory in Microsoft Trademark Case

Court Instructs Jury to Focus on Windows Term in Early 80’s Usage While Declaring that Generic Word Status Never Changes

SAN DIEGO, February 10, 2004 --
The United States District Court in Seattle has ruled in favor ofLindows.com Inc. (www.lindows.com) concerning key legal issues in the company's dispute with Microsoft (Nasdaq: MSFT) over the "windows" trademark. The Court flatly rejected Microsoft's arguments today that the jury should consider the meaning of the term "windows" in its current day usage, ruling rather that the jury should focus on the timeframe prior to the release of Microsoft's Windows products, which is 1983 -1985. The Court also ruled that once a word is declared generic it would continue to be generic, informing Microsoft that no amount of marketing around a generic word changes the generic state of the word. To view Honorable Judge Coughenour’s ruling, visit www.lindows.com/genericness.

The decision means that the March 1, 2004 trial will not go forward. Instead, Microsoft will appeal the Court's ruling to the United States Court of Appeals for the Ninth Circuit. The decision also means that
Lindows.com will be able to keep its name indefinitely or until the final decision in the case is made. To be informed of the new date, visit www.lindows.com/trialupdate.

"Microsoft understands the strength in our case, which is why they don't want to go to trial on March 1, and are again using delay tactics," said Michael Robertson, chief executive officer of Lindows.com. "Our users have helped us collect a mountain of evidence that Microsoft is afraid to confront."

"The rulings are a major victory for
Lindows.com. Essentially, the Court's ruling confirms that a company, no matter how much money it spends, cannot buy a word out of the English language," said Daniel Harris, Lindows.com's lead trial counsel. "These repeated filings by Microsoft are just another attempt to deplete our resources by dragging these legal proceedings on for as long as possible. We are looking forward to our day in court, when the mountains of evidence we have collected will be displayed to the jury."

The case began in December 2001, when Microsoft filed a trademark action against
Lindows.com, Inc. and asked the Court to block Lindows.com Inc. from using its company name and its product name, LindowsOS (www.lindows.com/opposition). Two successive rulings denied Microsoft's requests for an injunction, and raised serious questions about whether or not the term "windows" is a protectable trademark.

Legal Contact
Daniel R. Harris
Clifford Chance US, LLP

daniel.harris@cliffordchance.com
650.858.4373 (direct dial)
650.858.4399 (fax)
650.278.6414 (mobile)

To read past Court documents visit
http://www.lindows.com/mslawsuit. To stay apprised of all of Lindows.com activities, including legal updates and low-cost computer announcements, visit http://www.lindows.com/mailing. Press and other persons who are interested in attending the trial or being informed about trial happenings can sign up at http://www.lindows.com/trialupdates.


About Lindows.com Inc.
Lindows.com gives consumers the world's most affordable choice in software, focusing on complete ease-of-use and reliability. LindowsOS is an intuitive operating system that allows the installation of thousands of applications with just one click. LindowsOS 4.5 now offers SIP technology for free worldwide calling to other SIP devices, remote desktop sharing, and integrated websearch and translation tools (www.lindows.com/lindowsos). LindowsOS Laptop Edition (www.lindows.com/laptop) is the first Linux-based operating system tailored specifically for laptops. Those who are interested in becoming authorized resellers of LindowsOS should visit http://www.lindows.com/reseller, or http://www.lindows.com/builder if interested in selling computers pre-loaded with LindowsOS. LindowsOS is currently offered in English (www.lindows.com/lindowsos), Spanish (www.lindows.com/espanol) and Japanese (www.lindows.com/edge).






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