Microsoft and Octal Announce New Licensing Agreement

REDMOND, Wash., and LISBON, Portugal, June 12, 2001 — Microsoft Corp. and Octal TV SA (a Novabase subsidiary), of Portugal, today announced a new licensing agreement. Octal has integrated Microsoft® TV Advanced software into its set-top box platform for deployment with TV Cabo in Portugal.

The collaboration between Microsoft and Octal has delivered the world’s first DVB-C compliant set-top box with digital video recorder (DVR) functionality.

The agreement follows a memorandum of understanding between the two companies last year to deliver an advanced set-top box platform for the European digital video broadcasting (DVB) market. The goal of the collaboration is to offer network operators a compelling set-top solution based on Microsoft TV software and Octal set-top box platforms, providing for faster delivery to market of enhanced TV services.

Under the new licensing agreement, Octal TV has become the first set-top box developer to integrate Microsoft TV Advanced software into its set-top boxes for TV Cabo’s interactive TV service, which was launched on June 7 in Lisbon, Portugal by Microsoft CEO Steve Ballmer following a successful six-month trial.

“We are fully committed to supporting leading vendors across Europe and we’re delighted to have this alliance with Octal TV,”
said Jon DeVaan, senior vice president of the TV division at Microsoft.
“We’re confident this new agreement will enable a more rapid development and deployment of interactive TV services.”

“This relationship is a major step forward for us,”
said Nuno Duarte, managing director of Octal TV.
“We’re dedicated to integrating and developing Microsoft TV Advanced technology into our set-top box platform, and this new alliance will allow us, as a licensed supplier, to deliver the best open platform possible for key customers throughout Europe and America.”

About Octal TV/Novabase

Octal TV is a 51-percent-owned subsidiary of Novabase SGPS (Reuters: NBAN.IN; Bloomberg: NBA PL). The company offers a wide range of interactive digital cable, satellite and terrestrial set-top box devices for Microsoft-based TV platforms.

Novabase is one of the leading information technology companies in Portugal, with more than 800 employees in Portugal and Brazil. Novabase, headquartered in Lisbon, Portugal, has built a track record for innovation and high growth (45 percent per year) in the past nine years.

Its activity is structured in five main business areas: Novabase e-consulting (a leading systems integrators), Novabase ASP (addressing the IT needs for SMEs), Novabase e-talents (operating in the areas of recruitment, selection and outsourcing), Novabase Interactive TV and Novabase Capital (investor in companies with strong synergies with other Novabase businesses). For more information, please visit .

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 industry leaders worldwide that have chosen to work with the platform to deliver or supply the 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

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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