Microsoft and Intel Back HD DVD as Next-Generation High-Definition DVD Format of Choice

SANTA CLARA, Calif., and REDMOND, Wash., Sept. 26, 2005 — Intel Corporation and Microsoft Corp. today announced that they will join major consumer electronics manufacturers, content providers and other companies as members of the HD DVD Promotion Group. After extensive review, both companies determined that the HD DVD format developed by the DVD Forum meets important criteria and delivers unique advantages, including PC and connected device interoperability and an easy, affordable transition to high definition for consumers. HD DVD can bring the excitement of HD video to the consumer faster than competing formats, with the potential for more affordable hardware and more interactive experiences.

Intel and Microsoft are the two most recent additions to the HD DVD Promotion Group, joining such companies as NEC Corp., SANYO Electric Co. Ltd. and Toshiba Corp. and content providers such as Universal Studios and Paramount Pictures Corp. A complete list of over 100 companies is available.

“There are both challenges and opportunities in the transition to high-definition experiences throughout the home,” said Blair Westlake, corporate vice president of the Media/Entertainment & Technology Convergence Group at Microsoft. “And after looking at the core advantages to the PC ecosystem and how it would benefit the consumer, it is clear that HD DVD offers the highest quality, and is the most affordable and highly flexible solution available.”

“Our vision with Intel® Viiv™ technology is that digital media content can be enjoyed on these Intel-based PCs and consumer electronics devices in and around the home in an easy and affordable manner,” said Brendan Traw, Intel Fellow and chief technology officer of Intel’s Digital Home Group. “Intel has determined that HD DVD best meets the needs of consumers and the requirements for the respective consumer electronics, computer and entertainment industries for delivering a high-definition, interactive experience to the home on optical media.”

Microsoft and Intel cited the following consumer and industry requirements of any successful next-generation optical format for high definition, which is reflected by what HD DVD delivers today:

  • Managed Copy: A first for DVDs. Managed Copy is a guaranteed feature within HD DVD that gives consumers the freedom to make copies of their discs to a hard drive or home server, including Media Center PCs using Intel Viiv technology, and enjoy them in every room of the house over their home networks. HD DVD discs also will allow copies of the movie to be played on portable devices.

  • “Future-proof” compatibility. Using proven HD DVD “hybrid disc” technology, a single disc can store both high-definition and standard-definition versions of a film, allowing consumers to immediately enjoy the standard-definition movies stored on these discs on today’s DVD players, while HD movies can be replayed later on the HD DVD platform. This is an opportunity for consumers to buy discs at launch that future proof their collections — in other words, helping assure customers that the discs they buy will remain viewable in the future.

  • Proven low-cost, high-volume manufacturing. HD DVD discs use essentially the same manufacturing equipment as existing DVDs, meaning that production of HD DVD can ramp up easily and with lower costs.

  • Superior capacity. HD DVD-ROM discs will offer dual-layer 30GB discs at launch, compared with BD-ROM discs, which will be limited to 25GB.

  • Superior interactivity. HD DVD discs will offer greater interactivity using iHD technology, allowing for enhanced content, navigation and value-added functionality for high-definition films. For example, HD DVDs can offer advanced picture-in-picture capability so that other video, such as a director’s commentary, could play on top of the movie.

  • Superior format for notebook PCs. The compatibility of HD DVD with standard DVD facilitates and simplifies development of slim disc drives for integration in notebook PCs, one of the fastest-growing segments of the PC market.

As longtime leaders in the development of new industry specifications, Intel and Microsoft believe a single optical disc format is an ideal solution that would drive rapid consumer adoption. Although the companies have determined that HD DVD is the only viable solution at this time, each remains committed to working toward one format that meets consumer and industry requirements.

About the HD DVD Promotion Group

The HD DVD Promotion Group aims to exchange views and thoughts to help promote the HD DVD format based contents and products into the marketplace and share its promotional activity among members to encourage the broad acceptance of HD DVD on a world wide basis among members of the group, related industries and the public.

About Intel

Intel, the world’s largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at http://www.intel.com/pressroom.

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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