Microsoft and Philips Reach Major Milestone With AvailabilityOf Advanced iTV Cable Set-Top Box Solutions

AMSTERDAM, NETHERLANDS SEPT. 18, 2001 — Microsoft Corp., producer of one of the most comprehensive, end-to-end, interactive TV software platforms, Microsoft®
TV, and Philips Digital Networks, a division of Royal Philips Electronics and a leading supplier of digital broadcast solutions, today revealed at IBC (International Broadcasting Convention) 2001 a major step forward in their ongoing cooperation with the announcement of the availability of their next-generation advanced iTV cable set-top box solution.

The combined solution, based on Philips Semiconductors’ Nexperia (TM) Digital Video Platform (DVP) and the Microsoft TV Advanced software platform, incorporating Philips’ CryptoWorks (TM) conditional access system, is available today and allows network operators to deploy a wide range of interactive television services and applications on their networks quickly and easily. The solution, running on a new Philips advanced set-top box, gives cable operators the ability to download new applications and upgrades to the set-top box seamlessly over the network.

Because the combined Philips and Microsoft TV platform solution is built on open standards, the extensible architecture allows for a wide variety of third-party applications and services to be developed efficiently and independently using existing skills and development teams.

Nexperia DVP, developed by Philips Semiconductors and based on the TriMedia (TM) processor, is an advanced processor package with a scalable platform architecture that addresses a wide range of digital video applications as well as the potential for interoperability between digital devices. This scalability also will enable the set-top box to receive high-quality IP-based streamed audio and video content. The Nexperia DVP architecture enables the download of future standards and, at the same time, enhances the forward-thinking capabilities of the Microsoft TV platform.

The Microsoft TV platform is a flexible, comprehensive interactive TV software platform, allowing network operators to choose the components that best fit their needs from the widest range of software solutions. The platform supports a variety of enhanced TV applications, high-speed Internet access, a customizable user interface, digital video recording, multiplayer gaming, an electronic program guide, Windows Media (TM) Format streaming audio and video, and complete home networking services.

“Our ongoing successful cooperation with Microsoft TV has already resulted in second-generation products introduced to the market this year,” said Manfred Halbe, executive vice president and chairman of the Set-Top Boxes business group at Philips Digital Networks. “Now we are delighted to announce this next-generation set-top box range, which is certain to fulfill all foreseen customer requirements.”

“The Philips-Microsoft TV set-top box solution offers cable operators a combined, all-in-one, hardware and software solution for deploying interactive television services on their networks,” said Alan Yates, vice president for the Microsoft TV Group at Microsoft. “Our working relationship with Philips is extremely good, and the combination of our products and skill sets is particularly attractive for television customers in Europe. We are both very focused on delivering a great deployment experience to network operators and great end products for consumers.”

About Philips

Royal Philips Electronics of the Netherlands is one of the world’s biggest electronics companies and Europe’s largest, with sales of 37.9 billion euros in 2000. It is a global leader in color television sets, lighting, electric shavers, color picture tubes for televisions and monitors, and one-chip TV products. Its 212,390 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, components, semiconductors and medical systems. Philips is quoted on the NYSE (symbol: PHG), London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at

Philips Digital Networks is a business group of Philips Consumer Electronics, a division of Royal Philips Electronics. Philips Digital Networks is playing a leading role in the business of digital media delivery via broadcast and Internet distribution. In addition to being one of the world’s top providers of digital television systems and set-top boxes, including Internet TV and personal video recording solutions, Philips Digital Networks has major business activities in enabling technologies like MPEG4-based media streaming, secure content delivery, middleware and applications for digital TV. News from Philips Digital Networks is located at

About Microsoft TV

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 industry leaders worldwide that 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 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 “MSFT”) 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 and Windows Media are 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.

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