Microsoft Makes Equity Investment in Reciprocal Inc.

REDMOND, Wash., March 8, 1999 — Microsoft Corp. and Reciprocal Inc. today announced that Microsoft has made an equity investment in Reciprocal (formerly known as Rights Exchange Inc.). In addition, the companies have entered into a strategic technology and marketing alliance to accelerate the development and optimization of Reciprocal’s Digital Rights Management (DRM) solution and services for the Microsoft® Windows® operating system. DRM encompasses a broad set of technologies and services that will provide new ways of accessing, using and purchasing all kinds of digital content.

Optimizing Reciprocal’s solution for Microsoft Windows operating systems will be the first step in a relationship in which the companies will work together to build the emerging digital content distribution and commerce industry.

“We’ve chosen Reciprocal as our strategic partner based on its pioneering efforts in developing comprehensive solutions and services for Digital Rights Management,”
said Brad Chase, vice president of Windows marketing and developer relations at Microsoft.
“The combination of Reciprocal’s solutions and the flexibility and power of the Windows platform will enable a new range of digital commerce applications and business models.”

“The investment by Microsoft, as well as our strategic alliance, further validates our vision of the importance and necessity for Digital Rights Management,”
said Paul Bandrowski, CEO and president of Reciprocal.
“Our mission is to not only enable businesses to migrate their content to the digital world, but to deliver solutions that allow for new business models and revenue opportunities. We look forward to teaming with Microsoft to develop a comprehensive, scalable end-to-end solution.”

Founded in 1996, Reciprocal, formerly Rights Exchange, offers a global Digital Rights Management solution, which enables copyright protection, distribution, usage of and payment for digital content such as text, music, images or software via the Internet or any electronic medium. A comprehensive, end-to-end solution, it includes the software technology, services and sophisticated back-end infrastructure support needed to customize and maintain a Digital Rights Management solution across industry segments. It enables content owners to safely and profitably share, sell and distribute digitized content to expand their existing businesses or create new revenue streams quickly on a scale and budget that meets their needs. Reciprocal is privately held and has received venture funding from Adams Capital Management, Chase Capital Partners, Constellation Ventures, Flatiron Partners, SOFTBANK Technology Ventures, Venrock Associates, XDL Capital Corp. and Web Ventures. The company maintains offices in New York City; Buffalo, New York; and Research Triangle Park, N.C.

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.

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