February 8, 2012 Mr.

Brad Smith Senior Vice President and General Counsel Microsoft Corporation One Microsoft Way Redmond, Washington 98052 Dear Mr. Smith, When we spoke in 2004 for your Seattle Weekly interview, you mentioned that you would consider publicizing some of the data that relates to Microsoft's Washington State Royalty Tax (RCW 82.04.2907) payments. In December, John Burbank of the Economic Opportunity Institute wrote in The Herald that, "By running its licensing sales through a shop in Reno, Nev., it avoids royalty taxes that could be funding high-quality schools for Washington's children." Microsoft's Jeffrey Reading asked The Herald for a correction "Much of the information regarding this issue is misinformation primarily spread by a blogger [I assume that's me], ... Mr. Burbank... is not entitled to his own facts." I would like to ask at this time if you would publicly release Microsoft's Washington State Royalty Tax payments for the years 1998 - 2010 (prior to the apportionment change). Given your advocacy for education funding in Washington State, I'm sure you would like to set the record straight here. Releasing this data will allow us all to work with the same facts and put this matter to rest for good. If my reporting's been wrong, I'll be the first to publish a correction and an apology on my blog. If you have any questions, please feel free to contact me. Thank you for your time and attention to this matter. Sincerely, Jeff Reifman Blogger, Microsoft Tax Dodge jeff@reifman.org 507-556-7770 Cc: Jeffrey Reading, Microsoft Corporation Bob Bolerjack, The Herald John Burbank, The Economic Opportunity Institute David Kocieniewski, The New York Times