Microsoft (MSFT) - Get Report drifted down 0.4% in early trading. State attorneys general expressed concern over features of the Windows XP operating system to be released in the fall, and said they were meeting to discuss a possible new antitrust lawsuit against the software giant.

Microsoft this morning said it remained cautiously optimistic on sales strength in Europe, adding it hopes to retain a 30% annual growth rate in Eastern Europe.

The company is also reported to have bought Israeli data management startup

Maximal Innovative Intelligence

for $20 million.