THOMSON multimedia and WebTV Networks to Extend Alliance To Deliver Personal TV Receivers and Services

LAS VEGAS, Jan. 6, 2000 — Today at the 2000 International CES, THOMSON multimedia, a leading global supplier of consumer electronics products, and WebTV Networks, Inc., a subsidiary of Microsoft Corp., announced their plans to renew their alliance and develop and deliver the new Microsoft® WebTV Network TM Personal TV service. THOMSON’s expected products will enable personalized TV services, including digital video recording (DVR) capabilities,
“live” television control with Pause and Instant Replay, and a customizable channel of live news and weather headlines. Customers will have the option to take advantage of additional enhanced TV services from WebTV Networks, including interactive TV programming and Internet access – delivered by WebTV® Plus interactive service – for an all-in-one television experience manufactured by THOMSON.

“THOMSON and WebTV Networks have been collaborating on enhanced TV products, and we are thrilled to further extend this important alliance to deliver Personal TV,”
said Bruce Leak, president of WebTV Networks.
“THOMSON shares our vision of delivering consumer-friendly innovations for the television and TV viewers. As the first to deliver the color television and to popularize the VCR in the United States, THOMSON truly understands how to build new TV product categories. Together, we plan to work to deliver personalized TV services to hundreds of thousands of consumers.”

With WebTV Personal TV service, THOMSON offers TV viewers a new way to watch television and provide an easy way to navigate all the channels and choices available today. The outcome of this extended alliance will deliver multiservice devices that include traditional Internet and Interactive services from WebTV Networks as well as personal television. THOMSON is committed to giving people access to the information and entertainment they want any time and anywhere and make it available across multiple devices, including the television.

“As a major contributor in the fast-growing multimedia worlds of home entertainment, communications and information technologies, THOMSON is proud to work with WebTV,”
said Enrique Rodriguez, senior vice president, THOMSON multimedia.
“Together we offer new and current customers four incredible products in one – an enhanced personal TV system, digital video recorder, game player and Internet browser – all in the comfort of their own living rooms.”

Information regarding specific products, pricing and availability will be available at a later date.

About THOMSON multimedia

With sales over $6 billion in 1998 and 48,000 employees in over 30 countries, THOMSON multimedia (NYSE: TMS) is the fourth largest global supplier of consumer electronics products. The group has four main activities: Display and Components, Consumer Products, New Media Services, Patents and Licensing. Within its activities THOMSON multimedia develops, manufactures and sells television displays and components, consumer products such as televisions, VCRs, camcorders, audio and communication products, digital decoders, DVD players and professional video equipment. THOMSON multimedia is the parent company of the U.S.-based Thomson Consumer Electronics Inc. Visit THOMSON multimedia on the Web: .

About WebTV Networks

WebTV Networks, Inc., is a leading provider of enhanced TV services using Internet and digital technologies. WebTV Networks offers a range of enhanced TV services for set-top boxes, satellite products and other TV-related devices. Today, these services include the WebTV Classic Internet service, the WebTV Plus interactive service, and WebTV Personal TV service. WebTV Networks owns and operates a network of TV services and provides enabling software and hardware reference designs to consumer electronics manufacturers.

WebTV Networks, based in Mountain View, Calif., is a wholly owned subsidiary of Microsoft Corp. Microsoft incorporates WebTV technologies in the Microsoft TV software platform.

About Microsoft

Founded in 1975, Microsoft (Nasdaq
) 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.

The information contained in this document relates to prereleased products which may be substantially modified before first commercial release. Accordingly, the information may not accurately describe or reflect the products when first commercially released. This document is provided for informational purposes only, and Microsoft and WebTV Networks make no warranties, express or implied, with respect to this document or the information contained in it.

Microsoft, WebTV Network and WebTV 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.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at on Microsoft’s corporate information pages.

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