Morgan Stanley is acting as a financial advisor to Microsoft regarding their proposed acquisition of Yahoo, as announced in February 2008. The proposed offer is subject to completing definitive documents, due diligence, Yahoo shareholder approval, required regulatory approvals, and other customary closing conditions. Morgan Stanley prepared this report but does not intend it to influence proxy voting or other shareholder actions regarding the proposed transaction.

1. Internet Trends
March 18, 2008
mary.meeker@ms.com / david.joseph@ms.com / anant.thaker@ms.com
Morgan Stanley is currently acting as a financial advisor to Microsoft Corp. (Microsoft) in relation to their proposed offer to acquire Yahoo! Inc. (Yahoo!), as announced on February 1, 2008.
The proposed offer is subject to definitive documentation, due diligence, the consent of Yahoo! shareholders, required regulatory approvals and other customary closing conditions. This report and
the information provided herein is not intended to (i) provide voting advice, (ii) serve as an endorsement of the proposed transaction, or (iii) result in the procurement, withholding or revocation of a
proxy or any other action by a security holder.
Please refer to the notes at the end of the report.
Morgan Stanley does and see