Microsoft and NDS to Incorporate NDS Open VideoGuard Conditional Access With Microsoft TV

CHICAGO, June 11, 2001 — Microsoft Corp. today announced the availability of NDS’ conditional-access technology with the complete Microsoft® TV platform suite. Open VideoGuard™
from NDS Group plc allows network operators to more easily manage interactive TV subscriber services, including pay-per-view programming. The companies announced the signing of a memorandum of understanding (MOU) to further integrate NDS technologies across the Microsoft TV platform and to continue to innovate and develop new technologies and market the integrated solution. Today’s announcement builds on the strategic relationship initially announced in March 2000.

Under the MOU announced today at Cable 2001, the National Cable & Telecommunications Association (NCTA) convention, NDS Open VideoGuard conditional-access software has been integrated for deployment across advanced set-top boxes running Microsoft TV Advanced.

By incorporating technology from NDS, the leading conditional-access technology provider, into Microsoft TV, Microsoft is helping network operators use existing head-end infrastructures while cutting the cost and complexity of deploying interactive TV services. Microsoft TV Advanced with NDS Open VideoGuard conditional-access software provides secure content and revenue protection for pay TV businesses and includes features such as flexible pricing and packaging options, support for pay-per-view, near-video-on-demand and secure e-commerce. These features allow network operators to maximize the revenue from their subscriber base while offering them access to the widest range of digital TV content and interactive services.

“Microsoft is pleased to extend its strategic relationship with NDS in this area,”
said Alan Yates, vice president for sales and marketing in the Microsoft TV group at Microsoft.
“This uniquely enables customers for both our Advanced and Basic products to benefit from NDS innovations in content protection so they can evolve their networks easily and profitably, avoiding incompatibility issues, unusual costs or complexity.”

“The successful integration with Microsoft TV Advanced is a key milestone for both Microsoft and NDS,”
said Jas Saini, vice president of Consumer Devices at NDS.
“It ensures that our conditional-access system will now be available with the complete range of middleware from Microsoft TV, from Basic Digital to Advanced. This further builds on our continuing cooperation with Microsoft and opens up new markets for NDS.”

Microsoft previously licensed NDS software for Microsoft TV Basic Digital middleware for current-generation set-top boxes. Microsoft and NDS have already integrated NDS conditional-access technology in a new interactive TV trial with Brazil’s Globo Cabo, the first cable company worldwide to deploy Microsoft TV Basic Digital.

Microsoft TV and NDS will show their combined technologies in the Microsoft TV booth (No. 2300) at NCTA’s Cable 2001.

About NDS

NDS Group plc (Nasdaq/Nasdaq Europe
) is a leading supplier of open conditional-access software and interactive systems for the secure delivery of entertainment and information to television set-top boxes and personal computers. The company also develops secure datacasting solutions for the distribution of data and multimedia. More information is available at .

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 Enhanced 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 TV to interactive programming, electronic program guides and digital video recording.

Microsoft TV also creates significant new economic opportunities for network operators and industry leaders worldwide who have chosen to work with the platform to deliver or supply the services, programming, hardware and software for interactive TV. Microsoft TV supports open standards and is backed by the technical expertise, support and broad third-party developer community Microsoft is known for. 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

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.

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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