Microsoft Names VDOnet Premier Provider of Solutions For Broadband Video Networks; VDOnet Announces Adoption Of Microsoft NetShow and Active Streaming Format

REDMOND, Wash., and CAMBRIDGE, Mass., Aug. 5, 1997 — Microsoft Corp. has selected VDOnet Corp. as a premier provider of video solutions, based on Microsoft’s multimedia platform, to broadband networks. VDOnet announced its plans to build premium media solutions using Microsoft® NetShow
™
server. The relationship results from Microsoft and VDOnet’s ongoing collaboration on streaming video and videoconferencing applications for cable and telephone company customers.

As part of this relationship, VDOnet will become a Microsoft Solution Provider for NetShow-based products. Further, VDOnet will adopt Active Streaming Format (ASF) as its file format for media storage, and Microsoft DirectShow as its strategic client architecture, to provide value-added software, services and custom solutions for broadband video. Microsoft and VDOnet will also collaborate on ensuring a smooth migration path to the NetShow-based product line for VDOnet’s current and future customers.

“We are pleased to be working with VDOnet to further the adoption of NetShow in the premium service provider marketplace,” said Bob Muglia, vice president, server applications division at Microsoft Corp. “VDOnet’s proven expertise, market position, support for new Microsoft standards and technologies, and focus on applications for broadband networks make it an ideal partner for Microsoft in the broadband application space.”

Microsoft and VDOnet have a long history of collaboration around one-way and two-way video technologies. Microsoft has an equity stake in VDOnet and holds a seat on the company’s board of directors, and VDOnet’s VDOWave codec has been included in NetShow since 1996.

“We are very excited by Microsoft’s dramatic moves, which have focused attention on the convergence of IP and broadband networks,” said Asaf Mohr, chairman and founder, VDOnet. “VDOnet has focused on video solutions for broadband networks for some time and is pleased to be working closely with Microsoft to realize the vision of video over all networks.”

As part of this agreement, VDOnet will offer premium solutions built on NetShow, the VXtreme product line, and the technology recently licensed by Microsoft from Progressive Networks Inc. VDOnet’s solutions will also incorporate ASF and DirectShow technologies. ASF is a file format for synchronizing and streaming audio, video and mixed media. Microsoft DirectShow is an architecture for Windows® operating system-based client playback that allows users to play many forms of multimedia content. Microsoft NetShow is a streaming server for broadcasting multimedia, live and on demand, over the Internet and corporate networks. VDOnet will also provide feedback and participate in the review process for future versions of ASF and NetShow.

VDOnet Corp., founded in 1995, is a leading provider of video for the Internet, intranets and broadband networks. The company has developed both fundamental technology and compelling products for video broadcasting and video telephony over computer networks of any bandwidth. The company is now actively working with a variety of premium service providers to develop next-generation video applications for the Net. VDOnet’s investors include Microsoft Corp., U S WEST Media Group, NYNEX, Battery Ventures and private sources. VDOnet’s URL is http://www.vdo.net/ .

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.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass/ on Microsoft’s corporate information pages. For more VDOnet customer information, contact VDOnet Corp. by phone, (617) 528-6000, fax, (617) 577-8907, or e-mail, info@vdo.net.

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