<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF MICROSOFT CORPORATION AND HAS BEEN RESTATED FOR
CONSISTENT PRESENTATION WITH THE FINANCIAL DATA SCHEDULE FOR THREE MONTHS ENDED
SEPTEMBER 30, 2000.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000,000

                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1999
<PERIOD-START>                             JUL-01-1998
<PERIOD-END>                               JUN-30-1999
<CASH>                                           4,975
<SECURITIES>                                    12,261
<RECEIVABLES>                                    2,245
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                                21,702
<PP&E>                                           3,516
<DEPRECIATION>                                   1,905
<TOTAL-ASSETS>                                  38,625
<CURRENT-LIABILITIES>                            8,802
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                        980
<COMMON>                                        13,844
<OTHER-SE>                                      13,614
<TOTAL-LIABILITY-AND-EQUITY>                    38,625
<SALES>                                         19,747
<TOTAL-REVENUES>                                19,747
<CGS>                                            2,814
<TOTAL-COSTS>                                    2,814
<OTHER-EXPENSES>                                 6,923
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                 11,891
<INCOME-TAX>                                     4,106
<INCOME-CONTINUING>                              7,785
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     7,785
<EPS-BASIC>                                       1.54
<EPS-DILUTED>                                     1.42