REDMOND, Wash. - July 1, 1999 -Microsoft Corp. today announced that Windows Media™ Technologies will be an integral part of the Microsoft^® TV Platform Adaptation Kit (TVPAK) - Microsoft's client/server television software - enabling an enhanced listening and viewing experience for consumers using televisions or set-top boxes based on future TVPAK technology. By delivering Windows Media Technologies as a native feature of TVPAK, Microsoft is able to offer CD-quality audio and near-DVD-quality video efficiently and cost-effectively to licensees of Microsoft TV client software being used with interactive television devices. Based on the Windows^® CE operating system, Internet Explorer browser technology and WebTV^® technology, TVPAK will be available to OEMs in 1999.

"Windows Media Technologies provides a comprehensive approach to streaming media," said Phil Goldman, general manager, Microsoft WebTV Platform Division. "Windows Media Technologies will complement and enhance broadcast video by providing consumers with access to high-quality streaming audio and video at the click of a remote control. We expect many content developers to take advantage of this technology when they create interactive shows and advertising."

Microsoft TVPAK is a software platform that harnesses Internet technology for the benefit of TV viewers. For example, users of Windows Media Player will be able to enjoy CD-quality streaming audio, to play music videos and film clips, and to view high-quality television programs and movies as enabled by the network operator. The availability of Windows Media Technologies for television devices will enable network operators such as cable or satellite companies to work with content producers and advertisers to give consumers the high quality they expect from television and more control over what they view.

Microsoft expects availability of high-quality interactive and streaming content to drive demand for broadband versions of set-top appliances with the TVPAK as they come to market, scheduled for the first half of 2000.

"Just as TVPAK represents the next huge step forward in interactive television technology, Windows Media Technologies delivers the quantum leap consumers and content providers demand in audio and video quality," said Will Poole, senior director of marketing, Streaming Media Division at Microsoft. "The integration of Windows Media Technologies with the TVPAK television platform brings the wide choice of top-notch multimedia content to future consumer devices."

About Microsoft TVPAK

Microsoft TVPAK consists of Microsoft client/server software for the television industry. The client software, Microsoft TV, operates a range of TV-centric appliances from Internet terminals and advanced set-top boxes to integrated televisions. The server software, Microsoft TV Server, will be used by network operators to deploy and manage a rich, scalable, enhanced TV service.

More than 30 industry-leading companies are already actively working with the TVPAK software to create new devices, services and content to enhance the entertainment value and usefulness of television for consumers. In addition, more than 50 hardware manufacturers have received Microsoft TV code to evaluate and begin development of compatible receivers. More information on Microsoft's television software is available at http://www.microsoft.com/presspass/press/1999/jun99/tvpakpr.htm and http://www.microsoft.com/dtv/.