WebTV Networks and Samsung Announce Strategic Alliance

MOUNTAIN VIEW, Calif., July 14, 1998 — Microsoft’s WebTV Networks, Inc. today announced that Samsung branded WebTV® Plus Receivers will be available this summer through targeted promotional programs, such as the Home Shopping Network, through its 24-hour television programming, and Hanover Direct Inc., via direct marketing, which will independently offer the product to their respective consumer bases.

“We are pleased to be working with Samsung Electronics America, a television industry giant,”
said Steve Perlman, president of Microsoft’s WebTV Networks.
“Samsung’s commitment to pursue opportunities in diversified markets reflects our shared interest in targeting the untapped demand for WebTV products beyond the traditional retail channel. We look forward to working closely with Samsung to provide consumers with the better television experience that WebTV Plus delivers.”

The WebTV Plus system, which includes the WebTV Plus Receiver and the WebTV Plus Network service, seamlessly integrates television programming with Internet content and services, giving consumers more choice and control over the shows they watch as well as new ways to enjoy more entertainment, information and services through the Internet and special interactive programming. New features to be introduced this summer will allow users to customize television watching in useful and fun ways – from advanced VCR programming to sound- and image-enriched e-mail messages.

“The Samsung branded WebTV Plus Receiver is a perfect extension of our company’s digital products like DVD and HDTV, as well as the line of established television products like direct view TVs, TVCRs and VCRs,”
said Paul Wasek, senior product manager, digital products for Samsung Electronics America Inc.
“Aligning with Microsoft’s WebTV Networks, The Home Shopping Network and Hanover Direct will help Samsung accomplish its goal of expanding the company’s scope into these diversified channels, paving the way for future products.”

Samsung branded WebTV Plus Receivers were first available for purchase through the Home Shopping Network Saturday, July 11, 1998. The Home Shopping Network, a U.S. company, pioneered the electronic retailing industry in 1977. Its 24-hour programming reaches 70 million households via cable, broadcast television and satellite dishes. Home Shopping also owns the Internet Shopping Network (ISN, located at (http://www.isn.com/) ), one of the largest electronic retailers on the Internet, which holds interests in shopping channels in Germany and Japan and recently launched Home Shopping en Espa
ol, a joint venture with Univision Communications Inc. The company also recently announced the formation of a joint venture with Scandinavian Broadcasting System (SBS) to create and operate HSN-SBS Italia, a live television service in Italy.

Beginning in August, Hanover Direct Inc., a leading specialty direct marketer of catalogs such as The Company Store, Domestications, Silhouettes and Gump’s, will market Samsung branded WebTV Plus Receivers to its direct-mail and online customer base. Last year Hanover Direct circulated approximately 244 million catalogs, answered more than 11 million customer service and order calls, and processed and shipped nearly 9 million packages to customers in North America.

WebTV Networks, Inc. operates the WebTV Network service and develops the WebTV Internet Terminal, available for $99, and WebTV Plus Receiver, starting at $199. Both are available through the company’s U.S. licensees, Sony Electronics Inc. and Philips Consumer Electronics Company at U.S. consumer electronics stores nationwide. The WebTV Plus Receiver is also available from Mitsubishi Consumer Electronics America. WebTV Networks, based in Mountain View, Calif., is a subsidiary of Microsoft Corp.

Founded in 1975, Microsoft (Nasdaq
) 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.

Copyright 1998 WebTV Networks, Inc. All rights reserved.

This material constitutes confidential and proprietary information of WebTV Networks, Inc. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of the publisher.

Microsoft, WebTV and WebTV Network are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

Other product and company names herein may be trademarks of their respective owners.

This publication and the information herein is furnished as is, is subject to change without notice, and should not be construed as a commitment by WebTV Networks, Inc. Furthermore, WebTV Networks, Inc. assumes no responsibility or liability for any errors or inaccuracies, makes no warranty of any kind (express, implied or statutory) with respect to this publication, and expressly disclaims all warranties of merchantability, fitness for particular purposes and noninfringement of third-party right.

The subscription fee for the WebTV Network
and the WebTV Plus Network service is a flat fee. WebTV Network service and the WebTV Plus Network service are not available as a local call everywhere. Toll charges may apply. To check if you have local access, please call (800) GO-WebTV. WebTV systems, like other Internet devices, do not support all data formats.

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