Globo Cabo and Microsoft Deploy Interactive TV Services in Brazil Powered by Microsoft TV



O PAULO, Brazil, May 10, 2001 —
Globo Cabo SA and Microsoft Corp. today announced the world’s first deployment of cable-based interactive TV services using Microsoft® TV Basic Digital middleware. Microsoft TV Basic Digital is an optimized software solution for current-generation set-top boxes. Under the terms of the letter of intent, Globo Cabo also will become the first cable company to eventually use all the components of the Microsoft TV platform to provide new interactive services, content and features to its cable TV subscribers in Brazil.

“The primary purpose of our trial is to put real interactive TV services in the homes of real subscribers and learn firsthand what features and capabilities are most valuable to them,”
said Moyses Pluciennik, CEO of Globo Cabo.
“The trial will provide us with a fertile proving ground for better understanding the interactive TV marketplace in Brazil before launching these services commercially in other cities.”

Microsoft and Globo Cabo will begin an interactive TV trial this month in the city of Sorocaba, which is in the state of S
o Paulo. During the first phase of the trial, Globo Cabo will use Microsoft TV Basic Digital software to offer new interactive features to a range of subscribers, launching the network operator’s Interactive Television Project. In the future, Globo Cabo plans to add other services powered by additional Microsoft TV products, including Microsoft TV Advanced, Microsoft TV Server and Microsoft TV Access Channel Server.

“This trial with Globo Cabo is an important step for Microsoft for several reasons: It is the first deployment of a cable-based interactive TV service in Brazil, it represents the world’s first deployment of Microsoft TV Basic Digital, our solution for first-generation digital set-top boxes, and it is the first deployment of Microsoft TV software in Latin America,”
said Alan Yates, vice president of Microsoft TV sales and marketing at Microsoft.
“Our goal is to work closely with Globo Cabo, starting with Microsoft TV Basic Digital and enable a series of new interactive products and services over time.”

The trial initially will involve approximately 250 cable subscribers using Samsung digital set-top boxes. After the trial, Globo Cabo plans to commercially launch its interactive TV services. The first Brazilian cable operator to deliver digital television signals to subscribers’ homes, Globo Cabo plans to deploy at least 600,000 digital set-top boxes during the next five years.

Globo Cabo and Microsoft TV are teaming with NDS, the leading supplier of open conditional access software and interactive systems for digital pay TV, to take the lead in helping interactive TV change the way people watch television. Through new interactive TV services, viewers will be able to choose among multiple camera angles while watching sporting events, shop at the local supermarket through the television, access electronic banking, check and schedule favorite TV programs using the electronic program guide, and more. In addition, Globo Cabo subscribers will join other users of interactive TV worldwide in experiencing digital-quality audio and video through their set-top boxes.

The Microsoft TV Basic Digital solution is the result of a strategic alliance between Microsoft and NDS Group plc to extend the availability of Microsoft TV-based interactive TV solutions. NDS is providing the conditional access system and interactive infrastructure to Globo Cabo’s trial. NDS also has deployed interactive TV solutions through its experience with pay-TV projects in the United Kingdom, Europe, Latin America, Israel, China and the Far East

“NDS has built complex, multiplatform systems in a variety of markets, and our expertise and experience is acknowledged across the world,”
said Abe Peled, president and CEO of NDS Group plc.
“We are committed to delivering a high-quality digital TV solution to Globo Cabo, which will transform the entertainment and information network within Brazil.”

About Globo Cabo

Globo Cabo is the largest pay TV provider in Brazil with a presence in 67 cities in the country. With more than 1.5 million connected subscribers, Globo Cabo’s NET cable network extends over 34,000 kilometers and encompasses approximately 6.4 million homes. Globo Cabo is one of the main content distribution arms of Globo Organizations, the largest media conglomerate in Latin America. The company’s stock is traded on the Bovespa, Nasdaq and Latibex exchanges.

About the Microsoft TV Platform

The Microsoft TV platform is a standards-based, client and server software family that enables network operators and their partners to deliver the most compelling interactive TV services to consumers. The platform supports a range of TV devices — from current and next-generation set-top boxes and digital video recorders to integrated television sets, entertainment appliances and other computing devices. Through the platform, network operators and hardware providers can team up to offer consumers an unparalleled range of services, from e-mail and Internet on television to interactive programming, electronic program guides and digital video recording.

Microsoft TV also creates significant new economic opportunities for network operators and the more than 1,000 companies worldwide that have chosen to work with the platform to deliver or supply services, programming, hardware and software for the interactive TV industry. Microsoft TV supports open standards and is backed by the technical expertise, support and broad third-party developer community for which Microsoft is known. It is an integral part of the Microsoft .NET vision of empowering people through great software — any time, any place and on any device. More information about the Microsoft TV platform can be found at .

About Microsoft Brazil and Microsoft Corp.

The Microsoft Brazil subsidiary was opened in September 1989 and is the eighth of the 70 worldwide Microsoft subsidiaries. Microsoft Brazil has a staff of 280 highly capable professionals to address Brazilian market needs on marketing, sales, distribution, technical support and consultancy. The company has offices in Rio de Janeiro, Bras
lia, Belo Horizonte, Curitiba and Porto Alegre, and its main office in the country is in S
o Paulo. Microsoft Brazil revenue accounts for almost 50 percent of Microsoft’s total Latin America revenue. During fiscal year 2000, Microsoft Brazil’s total revenue was $438.6 million (U.S.), a 38 percent increase from fiscal year 1999.

Founded in 1975, Microsoft (Nasdaq
) is the worldwide leader in software, services and Internet technologies 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 is a registered trademark 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.

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