Code Red invades MS Hotmail servers

SAN FRANCISCO: After weeks of urging the public to patch computers running
its software to prevent Code Red infections, Microsoft Corp. found on Thursday
that its own servers needed de-worming.

Some Web servers that host Microsoft Network's Hotmail, the free Web-based
e-mail service, were found to be infected with one of the two Code Red worms,
Microsoft spokesman Jim Desler said on Thursday. "No customer data was
compromised and there was no impact in performance or security," said
Desler. "We've been vigilant in scanning systems. This underscores the
continued threat posed by Code Red."

The worm spreads through a hole in the Microsoft Web server software running
on Windows NT and 2000 computers. Code Red II spreads faster and leaves a
"backdoor" on infected machines, making them vulnerable to future
hacking.

On Wednesday, Redmond, Wash.-based Microsoft released a new tool that can be
used to clean up infected computers. The tool can be downloaded from http://www.microsoft.com/security
.

Memphis-based FedEx Corp., which uses the Internet to place orders and track
packages en route to delivery, also had computers infected by Code Red, a
spokesman said on Thursday. "We had a few problems but nothing we weren't
able to quickly fix," said FedEx spokesman Jim McCluskey. "We're
running normally now."

The worm temporarily interfered with some "call for pickup" orders,
McCluskey said.

(C) Reuters Limited 2001.