Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
GATES WILLIAM H III
   2. Issuer Name and Ticker or Trading Symbol
MICROSOFT CORP [MSFT] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
(Last)
(First)
(Middle)
ONE MICROSOFT WAY		 3. Date of Earliest Transaction (Month/Day/Year)
05/03/2007
(Street)

REDMOND, WA 98052		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 05/03/2007   S   4,700 D $ 30.985 912,494,636 D  
Common Stock 05/03/2007   S   5,852 D $ 30.983 912,488,784 D  
Common Stock 05/03/2007   S   5,102 D $ 30.982 912,483,682 D  
Common Stock 05/03/2007   S   544,488 D $ 30.98 911,939,194 D  
Common Stock 05/03/2007   S   5,103 D $ 30.976 911,934,091 D  
Common Stock 05/03/2007   S   26,828 D $ 30.975 911,907,263 D  
Common Stock 05/03/2007   S   24,500 D $ 30.973 911,882,763 D  
Common Stock 05/03/2007   S   1,198,305 D $ 30.97 910,684,458 D  
Common Stock 05/03/2007   S   7,200 D $ 30.967 910,677,258 D  
Common Stock 05/03/2007   S   16,280 D $ 30.966 910,660,978 D  
Common Stock 05/03/2007   S   45,285 D $ 30.965 910,615,693 D  
Common Stock 05/03/2007   S   18,200 D $ 30.963 910,597,493 D  
Common Stock 05/03/2007   S   9,600 D $ 30.962 910,587,893 D  
Common Stock 05/03/2007   S   3,600 D $ 30.961 910,584,293 D  
Common Stock 05/03/2007   S   678,738 D $ 30.96 909,905,555 D  
Common Stock 05/03/2007   S   8,870 D $ 30.955 909,896,685 D  
Common Stock 05/03/2007   S   6,600 D $ 30.952 909,890,085 D  
Common Stock 05/03/2007   S   9,400 D $ 30.951 909,880,685 D  
Common Stock 05/03/2007   S   274,378 D $ 30.95 909,606,307 D  
Common Stock 05/03/2007   S   9,100 D $ 30.948 909,597,207 D  
Common Stock 05/03/2007   S   19,754 D $ 30.945 909,577,453 D  
Common Stock 05/03/2007   S   6,200 D $ 30.942 909,571,253 D  
Common Stock 05/03/2007   S   212,517 D $ 30.94 909,358,736 D  
Common Stock 05/03/2007   S   5,100 D $ 30.938 909,353,636 D  
Common Stock 05/03/2007   S   8,219 D $ 30.935 909,345,417 D  
Common Stock 05/03/2007   S   5,400 D $ 30.934 909,340,017 D  
Common Stock 05/03/2007   S   188,281 D $ 30.93 909,151,736 D  
Common Stock 05/03/2007   S   11,500 D $ 30.925 909,140,236 D  
Common Stock 05/03/2007   S   54,200 D $ 30.92 909,086,036 D  
Common Stock 05/03/2007   S   2,299 D $ 30.915 909,083,737 (1) D  

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
GATES WILLIAM H III
ONE MICROSOFT WAY
REDMOND, WA 98052		   X      

Signatures

 William H. Gates III By: /s/ Michael Larson*, Attorney-In-Fact   05/07/2007
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) In addition, there are 425,066 shares owned by reporting person's spouse. The reporting person disclaims beneficial ownership of these securities, and this report shall not be deemed an admission that the reporting person is the beneficial owner of the securities for purposes of Section 16 or for any other purposes.
 
Remarks:
* Duly authorized under Special Power of Attorney appointing Michael Larson attorney-in-fact, dated February 3, 2006, by and on behalf of William H. Gates III, filed as Exhibit 99.1 to Cascade Investment, L.L.C.'s Amendment No. 2 to Schedule 13G with respect to Arch Capital Group Ltd. on March 7, 2006, SEC File No. 005-45257, and incorporated by reference herein.

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