Motorola and Microsoft Extend Solutions For Delivering Enhanced-TV Services to Cable Providers, Subscribers

NEW ORLEANS, May 9, 2000 — Today at Cable 2000, the annual National Cable Television Association (NCTA) convention, Motorola Inc. and Microsoft Corp. announced new digital interactive-television offerings for cable network operators and subscribers based on the Microsoft® TV Platform and Motorola’s DCT-2000 and DCT-5000+ set-top terminals and interactive digital systems.

The newest addition to the Microsoft TV Platform, Microsoft TV Access Channel Server, allows cable operators to deliver digital-television services such as e-mail, Internet access and interactive gaming to millions of cable subscribers with Motorola’s core interactive digital set-top terminal, the DCT-2000. Broadband cable providers have deployed a range of interactive digital services including video on demand, Internet access, e-mail, e-commerce and other services on the Motorola DCT-2000. In addition, cable providers will soon be able to offer video on demand to customers who deploy DCT-5000+ advanced interactive set-top terminals and the Microsoft TV Advanced client software.

“Over the past two years, Motorola and Microsoft have enjoyed a successful collaboration to make interactive television a reality for people everywhere,”
said Denton Kanouff, vice president of marketing in Motorola’s Broadband Communications Sector.
“With Motorola’s interactive digital system and consumer set-top terminals, including the option of deploying the Microsoft TV Platform, we’re providing the cable industry with a rich end-to-end solution, giving it the platform to implement broader services for customers while creating new revenue opportunities.”

Enhanced-TV Services Extend to Existing DCT-2000 Customer Base

Microsoft TV Access Channel Server is a server-side solution that delivers interactive-television services to customers via existing cable network infrastructure. This technology, which Microsoft acquired from Peach Networks Ltd. in February, is now optimized for the DCT-2000 set-top box and allows the cable industry to offer next-generation digital services to millions of DCT-2000 customers. With Microsoft TV Access Channel Server, cable operators can deliver Internet access, e-mail, rich Windows® operating system-based interactive games and content, personalized advertising, picture-in-picture capability and the ability to shop, chat and browse the Web.

Based on Windows Terminal Server, Microsoft TV Access Channel Server gives cable operators a robust, flexible and cost-effective solution that reduces the barriers to deploying interactive applications and services. Microsoft TV Access Channel Server can be deployed on new DCT-2000 set-top terminals or on already deployed DCT-2000s via software download using Motorola’s interactive digital system.

“The market for enhanced digital television is poised to take off, and we’re pleased to be working with Motorola to provide the best enhanced-TV platform to the cable industry,”
said Phil Goldman, vice president of the TV Platforms Group at Microsoft.
“Now, with Microsoft TV Access Channel Server, we’re giving cable operators an efficient way to extend Microsoft TV services to customers using the Motorola DCT-2000 cable terminal.”

Microsoft TV Access Channel Server will be demonstrated with the DCT-2000 set-top box in the Motorola booth at Cable 2000. The solution is scheduled to be commercially available in the first quarter of 2001.

Microsoft TV and Motorola Offer Video-on-Demand Solution

Microsoft and Motorola also announced that their advanced solution for interactive television, composed of the DCT-5000+ terminal, the Microsoft TV Advanced client software, Motorola’s interactive digital system and the Microsoft TV Server, will offer video on demand from four leading providers. DIVA, Intertainer Inc., nCUBE Corp. and SeaChange International Inc. have integrated with the Microsoft TV Platform and will deploy compatible video-on-demand solutions later this year. (More information on these solutions can be found in the related news release issued yesterday by Microsoft.)

About the Motorola DCT Line of Digital Set-Top Terminals

The DCT-2000 is Motorola’s current-generation core interactive digital set-top terminal, which features a double-speed processor, increased memory and higher-end graphics capabilities. The DCT-2000 combines MPEG-2 digital video and DolbyAC3 digital audio with real-time interactive capabilities to help bring cable service to an entirely new level. This terminal enables operators to offer increased channel lineups with digital picture and sound, and to introduce their customers to numerous interactive services, including e-mail, video on demand, television-based Internet access and community networking.

Motorola’s advanced interactive digital terminal, the DCT-5000+, delivers an unprecedented level of processing and graphics capabilities to the digital set-top terminal. Built around a high-powered RISC processor and a high-end 3-D and picture-in-graphics platform, the DCT-5000+ represents the leading edge in digital cable terminals. With a built-in DOCSIS-compliant cable modem for high-speed networking capability, the triple-tuner architecture of the DCT-5000+ lets users simultaneously watch television and surf the Internet or watch television and talk on the telephone using cable IP telephony.

About Motorola

Motorola (NYSE
“MOT”
) is a global leader in providing integrated communications solutions and embedded electronic solutions. Sales in 1999 were $33.1 billion.

About the Microsoft TV Platform

The Microsoft TV Platform is a comprehensive software solution for the television industry that makes television more useful, fun and engaging for consumers and creates significant new economic opportunities for network operators and their suppliers of programming, hardware and software.

The client software, Microsoft TV Basic Digital for current-generation set-top boxes and Microsoft TV Advanced for advanced set-top boxes, operate a range of TV-centric appliances from set-top boxes to integrated televisions. Microsoft TV Server and Microsoft TV Access Channel Server are a pair of server software products that offer network operators the tools to provision, manage and operate a large-scale, commercial-grade enhanced TV service.

The Microsoft TV Platform supports worldwide digital-TV broadcast standards, including DVB, ATSC and ARIB. It also supports commonly used Internet standards such as HTML, JavaScript and Dynamic HTML, as well as all interactive content authored according to the Advanced Television Enhancement Forum (ATVEF) specification.

About Microsoft

Founded in 1975, Microsoft (Nasdaq
“MSFT”
) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software – any time, any place and on any device.

Microsoft and Windows are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

Motorola is a registered trademark of Motorola Inc.

The names of actual companies and products mentioned herein may be trademarks of their respective owners.

Note to editors: If you are interested in viewing additional information about Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass/ on Microsoft’s corporate information pages.

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