Originally created 02/07/98

Microsoft plans reorganization



REDMOND, Wash. -- Microsoft, whose strategy of integrating itsInternet browser with its Windows operating system has been challenged bythe Justice Department, has combined the development of the products inan organizational realignment.

Under the move announced Thursday to Microsoft employees, senior Internetexecutives Brad Chase and David Cole will report to Jim Allchin, who willlead the personal and business systems group overseeing Windows and Webbrowser development.

Chase was named vice president for Windows marketing and developerrelations, and Cole was appointed vice president for Microsoft's Webclient and consumer experience division.

Microsoft plans to fully integrate its Internet Explorer browser in theforthcoming Windows 98 and Windows NT 5.0 operating systems.

In October, the Justice Department filed an antitrust lawsuit allegingMicrosoft was using its dominance in personal computer operating systemsoftware to gain market share for its Internet Explorer program.

Microsoft disagreed, saying the two programs were integrated and couldn'tbe separated as the government wanted.

In other moves, Bob Muglia, a veteran Microsoft networking executive, wasnamed senior vice president for software applications and tools. JohnLudwig, another Internet executive, will move to Microsoft's interactivemedia group.

Muglia, Allchin and Craig Mundie, senior vice president for the consumerplatforms group, will report to Paul Maritz, who oversees the Windowsconsumer and developer divisions as group vice president for platformsand applications.