Microsoft and Lucent Technologies Join Forces in Expansion of Internet Protocol Television Ecosystem

CHICAGO, June 22, 2004 — Microsoft Corp. and Lucent Technologies today announced a Memorandum of Understanding to integrate the Microsoft TV Internet Protocol television (IPTV) software platform with Lucent solutions to better enable telecommunications providers to add competitive digital TV services to their existing broadband product offerings. The companies are also exhibiting the results of this collaboration with the first demonstration of digital TV service delivery over ADSL2+ technology using Microsoft TV’s IPTV software platform at SUPERCOMM 2004 (Microsoft booth No. 24100, Lucent booth No. 11211), the world’s largest annual exhibition and conference for communication service providers and private network managers. This announcement underscores Microsoft’s continued commitment to drive industry innovation by working with leading telecommunications infrastructure partners to develop the most advanced technology platform and industry ecosystem for delivery and management of next-generation digital TV services via broadband networks.

This integration between Lucent Technologies and Microsoft enables the delivery of standard-definition, high-definition and on-demand programming to the Microsoft TV IPTV-based set-top box via the Lucent Stinger IP-Enabled Digital Subscriber Line Access Multiplexor (DSLAM) and Lucent ADSL2+ modem. The Windows Media Video 9 format, supported by Microsoft TV’s IPTV platform, optimizes available bandwidth to facilitate delivery of high-quality content over ADSL2+ networks. To illustrate the potential of Lucent ADSL2+ and Windows Media 9 Series, the Microsoft TV demonstration will feature high-definition content supported over a single ADSL2+ connection.

To support the growing needs of broadband network operators across the world offering subscription services, the two companies are working together in a nonexclusive arrangement to offer end-to-end network solutions integration, including OSS/BSS integration, consulting, design and deployment, through Lucent Worldwide Services.

“We are excited to integrate the Microsoft TV IPTV software platform with our industry-leading Stinger solution to deliver digital TV services to the market,” said Will Engler, vice president and general manager of Lucent Technologies Access Networks. “Backed by Bell Labs research, Lucent’s Stinger platform helps service providers bring new, next-generation revenue-generating services, such as IPTV, to their customers.”

“Microsoft TV is committed to collaborating with industry leaders like Lucent to drive innovation and build a world-class ecosystem of infrastructure partners that work closely with us to deliver end-to-end IPTV solutions for our customers,” said Lynne Elander, general manager of marketing for Microsoft TV. “This cooperation between Microsoft and Lucent has resulted in the first of what we expect will be a series of exciting solutions that will help telecommunications providers be successful in the lucrative emerging IPTV marketplace.”

About Lucent Technologies

Lucent Technologies (NYSE “LU”) designs and delivers the systems, services and software that drive next-generation communications networks. Backed by Bell Labs research and development, Lucent uses its strengths in mobility, optical, software, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for its customers, while enabling them to quickly deploy and better manage their networks. Lucent’s customer base includes communications service providers, governments and enterprises worldwide. For more information on Lucent Technologies, which has headquarters in Murray Hill, N.J., USA.

About the Microsoft TV Platform

Microsoft TV provides software solutions that help digital TV operators create new services that delight consumers. Designed to help cable providers and telecommunications companies derive more value from digital video and network infrastructure investments, the Microsoft TV product family supports a range of digital video services including interactive program guides, digital video recording, high-definition TV and on-demand programming. The Microsoft TV platform works across a full range of set-top boxes and TV devices. More information about Microsoft TV 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 solutions that help people and businesses realize their full potential.

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