REDMOND, Wash., and DALLAS - Dec. 7, 1999 - Microsoft Corp. and Texas Instruments Inc. (TI) today announced that both companies will collaborate on pairing TI's world-leading programmable digital signal processors (DSPs) with Microsoft^® Windows Media™ Format and digital rights management (DRM) technology. Texas Instruments will also provide free licensing of the Windows Media Format and DRM to its original equipment manufacturers (OEMs) at no additional cost. Windows Media gives consumers the ability to create and store up to twice as much CD-quality music as other formats on portable audio players.

TI, the world leader in DSPs and analog semiconductors, will deliver a new DSP chip design using the programmable, low-power TMS320C5000 platform, which is software-upgradable to enable support for future product features and multiple audio formats. Today's announcement will help enable manufacturers of portable music devices to speed the delivery to market of new, high-quality devices that support Windows Media. Chip-level support for Windows Media and the revolutionary Windows Media Device Manager will make it easier for OEMs to overcome licensing barriers and complex technical porting efforts. TI's programmable DSPs with Windows Media support will be available for evaluation in early January 2000.

"RCA applauds this agreement between TI and Microsoft, which will open up a whole spectrum of new music and audio to be played on portable players," said Jeff Scott, business manager for RCA's Advanced Audio Division, which makes the RCA LYRA. "The LYRA is the only next-generation product available on store shelves for the Christmas season that plays multiple audio formats, is format-upgradable and is powered by TI's C5000 platform."

"By supporting Microsoft's fast-growing Windows Media Technologies, TI extends its position as the leading provider of the next generation of portable multiformat Internet audio solutions with such customers as RCA and Sanyo," said John Van Scoter, vice president and general manager of Internet audio business at Texas Instruments. "TI is the only supplier shipping volume production of a low-power, multiformat upgradable solution today."

"Texas Instruments' native support for Windows Media and digital rights management is a significant endorsement for Windows Media in the audio chip market," said Will Poole, general manager of the Streaming Media Division at Microsoft. "This is another important step in providing OEMs with integrated, cost-effective tools to give consumers the highest-quality secure Internet audio in the smallest file size."

The Microsoft and TI solution follows Secure Digital Music Initiative (SDMI) guidelines, which seek to protect the rights of content owners by building security measures such as watermarking, encryption and decryption into compact discs, electronic music distribution (EMD), personal computer hosts and portable players. TI and Microsoft are each founding members of SDMI and helped define the interindustry guidelines that offer secure download measures. Microsoft and TI are committed to accelerating the delivery of SDMI-capable devices and applications to market.

About Texas Instruments

The worldwide leader and pioneer in digital signal processing solutions since 1982, Texas Instruments provides innovative DSP and mixed-signal/analog technologies to more than 30,000 customers in the computer, wireless communications, networking, Internet, consumer, digital motor control and mass storage markets worldwide. To help customers get to market faster, TI offers easy-to-use development tools and extensive software and hardware support, further complemented by close to 300 third-party DSP solutions providers.

Texas Instruments is a global semiconductor company and the world's leading designer and supplier of digital signal processing and analog technologies, the engines driving the digitalization of electronics. Headquartered in Dallas, the company's business also includes materials and controls, educational and productivity solutions, and digital imaging. The company has manufacturing or sales operations in more than 25 countries.

Texas Instruments is traded on the New York Stock Exchange under the symbol TXN. More information is located on the World Wide Web at http://www.ti.com/sc/internetaudio/.