Microsoft, INTERVU and Join to Expand Services For Music Retailers and Record Labels

REDMOND, Wash., SAN DIEGO and SEATTLE, Dec. 21, 1999 — In a three-company announcement today, INTERVU Inc. (Nasdaq: ITVU), the leading service provider for Internet audio and video delivery solutions, and Microsoft Corp. (Nasdaq: MSFT) will each make $5 million investments in, the leading provider of music samples and data to Internet music retailers. As the digital music industry continues to grow, this equity investment will help expand the capabilities and services it provides to Internet music retailers and record labels. offers the world’s largest database of music samples, including over 1.2 million samples from more than 200,000 albums. The company delivers approximately 50 million audio streams per month for major music retailers such as,, Borders Inc., CDNOW and Tower Records. Under the agreement, INTERVU will become’s exclusive streaming media provider, including music download distribution services. The Microsoft® Windows Media TM platform, along with INTERVU’s patented streaming media network, will be integral to’s music distribution service for leading music retailers and record labels.

As part of this transaction,’s Internet music retailer base will receive access to the open Windows Media platform, which delivers high-quality digital music and a flexible technology foundation for digital music distribution and commerce. As digital media become widely used, new infrastructure services are required to support content management, e-commerce, secure music distribution and more.

“With Windows Media, Microsoft delivers a proven technology platform that enables digital music distribution,”
said Will Poole, general manager, Streaming Media Division at Microsoft.
“These three companies together offer an unmatched set of services upon which music retailers can build their e-commerce business.”

In addition to the popular Windows Media platform, will seamlessly integrate INTERVU’s audio and video distribution services into its Internet music retailer service offering. INTERVU’s audio distribution services are based on the company’s patented network, which offers tremendous capacity to scale upon demand. The distributed architecture is essential to support as its music distribution demand grows.

“With nearly 20 percent of our revenue currently being derived from the digital distribution of music, we believe that this space is poised for major growth,”
said Harry Gruber, chairman and CEO of INTERVU.
“Our investment in secures an important channel partner for INTERVU in one of the potentially largest digital audio-video distribution markets on the Internet.”

“The combination of Microsoft’s technology and INTERVU’s world-class network will provide a scalable and high-quality delivery solution to our retailers and record labels, where scale and quality count,”
said David Lambert, president and chief executive officer of
“The investments by Microsoft and INTERVU will enable us to significantly enhance our music sampling service for Internet music retailers. We are pleased that Microsoft and INTERVU have demonstrated a strong interest in our services and consider this round of financing to be another major milestone for the company.”

INTERVU and Microsoft will each acquire $5 million of’s convertible preferred stock.


INTERVU provides Web site owners and content publishers with services for the delivery or
of live and on-demand video and audio content over the Internet. INTERVU’s services automate the publishing, distribution and programming of video and audio content. INTERVU uses a scalable, patented distribution network composed of servers strategically located in major Internet hosting centers. INTERVU’s customers use its video and audio distribution services to transmit entertainment, sports, news, business communications, advertising and distance learning content. INTERVU’s current customers include CNET (Nasdaq: CNET), CNN (NYSE: TWX), Excite@Home (Nasdaq: ATHM), House of Blues, Microsoft (Nasdaq: MSFT), MSNBC, NBC (NYSE:GE),, Quokka Sports (Nasdaq: QKKA), Saatchi & Saatchi (NYSE:SSA) and Turner Broadcasting. Additional information can be found at .

About has established the retail industry standard for Internet music sampling. The company serves retailers and consumers with the world’s largest database of music samples, and the new MusicMeter, the authoritative voice for online listening data., formerly Enso Audio Imaging Corp., became incorporated in March 1998 and is privately held.’s primary venture capital firm is Generation Partners of New York and San Francisco.

About Microsoft

Founded in 1975, Microsoft is the worldwide leader in software for personal and business computing. The company offers a wide range of products and services designed to empower people through great software – any time, any place and on any device.

Microsoft and Windows Media are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties which might cause actual results to differ from those foreseen, including the market acceptance for INTERVU’s specialized services, the growth of the market for streaming media services, INTERVU’s history of operating losses and expected future losses, technological change, and intense competition as well as the other risks detailed from time to time in INTERVU’s SEC reports, including the report on Form 10-K filed March 30, 1999.

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