Rick Sherlund Sluggish Quotations

We are reducing our March quarter revenue estimate due to growing evidence that PC unit growth did not likely come up to our expectations. PC growth was very sluggish from November through February, and while it reaccelerated in March, it does not appear to have occurred fast enough to offset the weakness earlier in the quarter.

We trimmed estimates last week to reflect even more sluggish PC demand, the potential for slower server growth and slower on-line advertising for MSN,