Microsoft and Pace Unveil Wireless Home Networking Through Advanced Set-Top Box

ANAHEIM, Calif., Nov. 27, 2001 — Microsoft Corp. and Pace Micro Technology Americas will showcase a next-generation wireless solution for the advanced set-top box at the Western Show 2001 in Anaheim, Calif. This demonstration, running on Microsoft® TV Advanced, utilizes the Pace Di6000 advanced home gateway box and highlights how wireless, always-connected, high-speed connectivity to multiple devices in the home can extend the value of set-top boxes and create new revenue opportunities for network operators. Demonstrations will be held at the Anaheim Convention Center at Paces booth, No. 3025, Hall C, and at Microsofts booth, No. 5031, Hall B.

“As interactive television (iTV) evolves with the advent of new enhanced services, such as video on demand, e-commerce, multichannel video, gaming and targeted advertising, operators realize that real estate on the TV screen is fiercely competitive, creating an environment where some service offerings could very well cannibalize others,”
said Andy Trott, CEO of the Networks & Connected Devices Division at Pace.
“We see home networking as an essential key to allowing operators to expand their service offering beyond the television and maximize revenue opportunities through new, peripheral value-added services.”

The wireless connectivity is enabled through Paces Gateway Expander, a wireless base station that enables two-way communication from the broadband external network to peripheral electronic devices connected internally to the home network. Pace will demonstrate its Di6000 set-top box running Microsoft TV Advanced connected to Paces Gateway Expander via Ethernet at the Western Show. The Gateway Expander in turn will connect wirelessly to a laptop PC and a personal digital assistant (PDA), enabling the PC and PDA to access the Internet via the cable modem in the set-top box. Pace and Microsoft will illustrate how consumers can conduct Internet-related activities, including Internet browsing, e-commerce and streaming media, using an external device via wireless networking, with the added benefit of uninterrupted television viewing.

“This innovative wireless solution for the Microsoft TV platform underscores the joint commitment of Microsoft and Pace to bring next-generation iTV services to the home,”
said Jon DeVaan, senior vice president of the TV Division at Microsoft.
“Were demonstrating our ability to deliver advanced iTV services to the marketplace, as well as showing network operators how they can extend their services beyond the television to generate additional revenue streams and increase customer loyalty.”

The Di6000 enables network operators to offer numerous advanced interactive services, including pay-per-view, e-mail, home shopping, home banking and Web browsing, on television. In addition, the Di6000 has a DOCSIS/EuroDOCSIS integrated cable modem, allowing transmission of interactive content to the television while simultaneously providing high-speed content to other devices around the home.

Microsoft TV Advanced enables cable, satellite and terrestrial operators to offer their subscribers new interactive television features, including digital video recording, enhanced television programming, Internet on television, communications services, t-commerce (television commerce), advanced electronic programming guides and more. Together, the Di6000 and Microsoft TV Advanced provide an excellent platform for launching broadband services in the home.

About Pace Micro Technology

Pace Micro Technology plc is a pioneer of digital technology for the home and has helped build the global market for pay television services. Using this expertise, Pace is evolving the set-top box into a sophisticated home gateway to enable revenue-generating services for TV and the networked home. In this networked home, the Pace home gateway is the portal for entertainment and interactive communications around the home and with the outside world.

Pace analog and digital technology has been installed in over 13 million homes worldwide since it was founded in 1982. The company is now actively involved in all digital platforms — satellite, terrestrial, cable, wireless and xDSL — through relationships with broadcasters, network operators and technology partners in the UK, USA, France, Europe, Latin America, Australasia and the Far East. These achievements were made possible through the commitment of Paces 1,000-strong workforce, over half of whom are research and development engineers, dedicated to the development of digital technology for the home and small and home office markets.

Pace Americas office is based in Boca Raton, Fla., with its head office in West Yorkshire, England. Additional offices are throughout England, the U.S., France and Hong Kong. The companys shares are traded on the London Stock Exchange (PIC). For further information, please visit Paces web site at http://www.pacemicro.com .

About the Microsoft TV Platform

The Microsoft TV platform is a standards-based client and server software family that enables network operators and their partners to deliver the most compelling interactive television services to consumers. The platform supports a range of television devices from current and next-generation set-top boxes and digital video recorders to integrated television sets, entertainment appliances and other computing devices. Through the platform, network operators and hardware providers can team up to offer consumers an unparalleled range of services, from e-mail and Internet on television to interactive programming, electronic program guides and digital video recording.

Microsoft TV also creates significant new economic opportunities for network operators and industry leaders worldwide that have chosen to work with the platform to deliver or supply the services, programming, hardware and software for interactive television. Microsoft TV supports open standards and is backed by the technical expertise, support and broad third-party developer community Microsoft is known for. It is an integral part of the Microsoft .NET vision of empowering people through great software any time, any place and on any device. More information about the Microsoft TV platform can be found at http://www.microsoft.com/tv/ .

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 is a registered trademark of Microsoft Corp. in the United States and/or other countries.

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