Microsoft Corp says it will present new evidence at the antitrust trial in Washington showing that Jim Barksdale, CEO of Netscape Communications Corp misled the Court when he testified earlier in the trial. The company will present the allegations when it calls David Colburn, senior VP of business affairs at America Online as its first rebuttal witness when the trial resumes on Monday.

Netscape was talking about one things on the stand in this trial, and very different things to AOL in their merger negotiations, said a Microsoft spokesperson. Microsoft says it has new evidence that it has uncovered during the discovery process that shows that the two companies, both of which had representatives appear on the behalf of the government during the trial, were in court seeking government intervention the high tech industry and at the same time secretly negotiating a $10bn merger that changed the competitive landscape, claims Microsoft.