One day after a federal judge ruled that Microsoft has monopoly power over personal computer operating systems, local supporters of the Redmond, Washington,-based software giant rallied to its defense. ``We strongly disagree with the judge's findings,'' Gov Gary Locke said. ``Microsoft products have greatly benefited consumers.'' Locke, a personal friend of Microsoft chairman Bill Gates, said, ``We support Microsoft and expect Microsoft ultimately will prevail in these legal proceedings.''

Analysts concede Microsoft's dominance in PC operating system software, but think there's plenty of room for competition in other fields. ``Clearly, if you want to be in the operating system business these days it's a challenge, particularly if you want to attack the desktop,'' said Scott McAdams of the Seattleinvestment management firm McAdams Wright Ragen. ``But if you want to attack some of these alternative platforms, there are some opportunities out there.''

On Microsoft's sprawling campus in Redmond, a suburb of Seattle, employees did not seem overly concerned. Luis Huapaya, a software developer, said Microsoft would get revenge on the Justice Department by working hard and making better products. ``We're going to try twice as hard to make better software so we'll still be the best,'' he said, adding that he wasn't worried about his own future.

``I'm going to let Bill Gates and the company decide my fate. I trust them. ... It's not over 'til it's over.'' Will Gates pursue settlement? One analyst predicts that Gates will continue to resist Government intervention despite the preliminary ruling. ``It seems all these various antitrust actions have not toned him down. In fact, he seems to have become even more aggressive and sometimes seems to like to flaunt even more aggressive behaviour in the face ofGovernment scrutiny,'' said The Microsoft Files author Wendy Goldman Rohn.

Microsoft is still interested in reaching a settlement with the Government, Gates said Friday, and would make its best efforts to resolve the case. But he said the company would not sacrifice its right to innovate. ``We respectfully disagree with a number of the court's findings,'' he said.

Microsoft has been the linchpin of a multi-billion-dollar high-tech revolution in Washington. The company employs about 17,000 people in the state; the software industry total is about 27,000, said Chang Mook Sohn, Washington's chief economist. In 1998, the average state wage grew 72 per cent. Without the software industry, that rate would have been 4.6 per cent, he said.

The average Microsoft employee earns more than $400,000 a year, counting stock options, while the average aerospace worker makes about $50,000. ``Anything that hurts Microsoft hurts the state's economy - no question about that,'' he said. ``The impact on the state economy isjust unbelievable.'' Sohn also defended the company. ``In all of the high-tech industry ... there is no such thing as a monopoly,'' he said. ``Anyone can get in, and they do, because the entry barrier is so low.''

Some high-tech Seattle-area residents, however, welcomed the decision. At an Internet cafe near the Microsoft campus, one college student said the company's dominance limited his software choices. If you use another system, is has to be converted to (Microsoft) Windows, or you try to do it over, so it's a real inconvenience in that way,'' Brandon Reece said. Employers want applicants to know Microsoft software such as Word, Excel and Windows, echoed computer user Julie Moore. ``It doesn't matter if you know anything else,'' she said.