INTEL AND MICROSOFT SIGN CROSS LICENSING AGREEMENT FOR COMMUNICATIONS TECHNOLOGY AND INTEROPERABILITY ACROSS THE INTERNET

SANTA CLARA, Calif./REDMOND, Wash. July 17, 1996 Intel Corp. and Microsoft Corp. today announced the signing of a broad cross-licensing agreement aimed at making it possible for millions of people to easily place multimedia voice, video and data conferencing calls over the Internet. The key challenges for widespread communications over the Internet are to make it as easy as today’s telephone network to find the person you want to talk to and to have a standard set of protocols that allow anyone to connect successfully and carry on a conversation.

To ensure universal interoperability for voice and video calls, Intel will provide Microsoft its implementation of the H.323, RSVP and RTP standards created for its ProShare family of video conferencing products. Microsoft will provide Intel its T.120 implementation, the ActiveX Conferencing Technologies and the Microsoft®
NetMeeting application.

Both companies are working with Internet white page vendors and service providers to make it easy to find other people to talk to on the Internet using the open User Location Service (ULS). Microsoft is providing Intel its implementation of ULS.

At the last worldwide meeting in Geneva, Switzerland, the International Telecommunications Union (ITU)
“decided”
the H.323 standard, which allows for cross-platform, interoperable voice, data, video, point-to-point and multipoint communication on data networks, such as the Internet or corporate intranets. The agreement announced today allows Intel and Microsoft to quickly deliver interoperable products supporting this standard.

Today’s announcement marks the second step by Intel and Microsoft to ensure the PC is the world’s premier communications device. In March, Intel and Microsoft, along with more than 120 hardware, software and service companies, endorsed and agreed to support products based on T.120 and H.323.

The agreement also calls for Intel and Microsoft to jointly promote these standards to the software development, PC OEM, independent hardware vendor, conferencing and Internet services communities. To ensure the widest possible interoperability, Intel and Microsoft will continue to sponsor and participate in industry interoperability events this summer.

“By aggressively supporting standards-based communications along with Intel and others in the industry, we are making great strides to meld the power of the PC with the global reach of the Internet,”
said John Ludwig, vice president of the Internet platform and tools division at Microsoft.
“Microsoft NetMeeting is a bold demonstration of the new Internet communications paradigm.”

“Today’s announcement reflects solid progress and the expansion of a great relationship with Microsoft on Internet technologies,”
said Frank Gill, executive vice president of Intel, general manager of Intel’s Internet and Communications Group.
“With Microsoft, and the more than 120 companies that are supporting our standards effort, we’re going to make low-cost voice, data sharing and ultimately video conferencing available to all PC users on the net.”

Microsoft plans to include the new technology in a future release of Microsoft NetMeeting, which is available in conjunction with Microsoft Internet Explorer 3.0 and will be included with future versions of the Windows®
operating system. Further, the technology will be packaged as an ActiveX ™ Control for easy integration of standards-based Internet communications by any application. Intel plans to include these capabilities in future products and will work to integrate this new implementation and other new multimedia communications capabilities into the base PC platform

Intel, the world’s largest chip maker, and leading manufacturer of personal computer, networking and communications products, is dedicated to the advancement of the PC as the platform of choice for on and off the Internet computing and communications.

Founded in 1975, Microsoft (NASDAQ
“MSFT”
) is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.

Microsoft, NetMeeting, ActiveX and Windows are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries. ProShare is a trademark of Intel Corporation. Other brands or products are trademarks or registered trademarks of their respective holders.

For Online Product Information:

Intel Web site: (http://www.intel.com/)

Intel PressRoom: (http://www.intel.com/pressroom/)

Microsoft Internet Web site: (http://www.microsoft.com/)

Microsoft NetMeeting Web site: (http://www.microsoft.com/netmeeting.htm/)

CONTACT:

Ralph Bond, Intel Corporation (503) 264-6277

Dawn Leonetti, Microsoft Corporation/Waggener Edstrom (503) 443-7000

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