Microsoft will comply with and appeal judge's ruling

Saying a federal judge overstepped the boundaries of the case, Microsoft unveiled plans to appeal a preliminary injunction preventing it from tying its Internet Explorer browser to its Windows platform.

The company said it would challenge Judge Thomas Penfield Jackson's ruling because he issued the order even though he did not find the company in contempt of a consent decree. Microsoft said it would comply with the injunction in the meantime, and would still ship Windows 98 as planned.

The company also said it has sent letters to computer makers advising them of its plans and offering them an older version of Windows released in August 1995 that is not tied to Internet Explorer.

Full story to follow.