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To our shareholders, customers, partners, and employees:

Fiscal 2006 was a year of significant achievement and transformation for Microsoft. During 2006, we celebrated the thirtieth anniversary of our founding, reached new records for revenue and operating income, and laid the foundation for future growth through key changes in our organizational structure and leadership. Fueled by strong demand for new and existing products, our revenue in 2006 grew by $4.49 billion, an 11 percent increase, to $44.28 billion. Operating income reached a record $16.47 billion. We also returned $23 billion to shareholders through dividends and by repurchasing our stock.

The past year saw the successful launch of major products including Xbox 360™, Microsoft® SQL Server™ 2005, Visual Studio® 2005, Microsoft Dynamics™ CRM 3.0, and BizTalk® Server 2006. Meanwhile, we continued to prepare for the most important series of product releases in Microsoft history as we readied Windows Vista™,......

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Approximate Word Count: 47232
Approximate Pages: 189 (250 words per double-spaced page)

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