Samsung and Microsoft Announce Strategic Alliance To Collaborate on Digital Home Technologies

REDMOND, Wash., and SEOUL, South Korea, Oct. 17, 2001 — Microsoft Corp. and Samsung Electronics Co. Ltd. today announced a broad agreement to collaborate on consumer PCs and consumer electronics products for the digital home. The two companies intend to work together to develop and market a new breed of products based on Samsung hardware and Microsoft® Windows®
software including support for Windows Media (TM) Technologies. The joint effort is the first strategic alliance for Microsoft’s eHome Division, a new business unit formed earlier this year with the mission of developing new technologies that bring exciting yet simplified whole-home entertainment, communications and control experiences to everyday consumers.

The memorandum of understanding was ratified in Seoul at a meeting between Microsoft Chairman and Chief Software Architect Bill Gates and President and Chief Executive Officer of Samsung Electronics’ Digital Media Business Dr. Daeje Chin, Ph.D. This alliance is a key step in Samsung’s strategy to become a leader in the digital electronics era. Microsoft’s support will allow Samsung Electronics to provide leading solutions to deliver content and entertainment to the home.

“Microsoft’s alliance with Samsung Electronics will deliver a new generation of digital home technologies that create exciting experiences without adding more complexity to people’s lives,” Gates said. “We are entering a Digital Decade where smart, connected devices and advanced home-entertainment solutions will enable people to utilize technology in new ways and maximize its full potential.”

“We look forward to working with Microsoft to pioneer a new range of home technologies,” Dr. Chin said. “Microsoft technologies offer many benefits to build upon our vision of offering consumers seamless connectivity and easy home networking. We will develop an entire ecosystem of PCs, digital devices, intelligent home appliances and services that will easily and cost-effectively transform average households into next-generation digital homes.”

As part of the agreement, Samsung Electronics will support a variety of products and technology areas related to Microsoft’s desktop and embedded Windows products including Windows Media Technologies, the Microsoft .NET Platform and upcoming eHome initiatives. For example, Samsung will expand on its Windows CE investments to develop a wide range of smart digital appliances as part of the Samsung Digital Platforms vision.

About Samsung Electronics

Samsung Electronics Co. Ltd. is a global leader in semiconductors, the consumer electronics industry and digital convergence technology. Samsung Electronics employs approximately 66,000 people in 46 countries. The company is the world’s largest producer of memory chips, TFT-LCDs, CDMA mobile phones and monitors, and is the sixth-largest manufacturer of mobile phones. Samsung Electronics consists of four main business units: Digital Media, Semiconductor, Information & Communications, and Home Appliance Businesses. For more information, please visit the Web site

Dr. Chin will be a keynote speaker at the 2002 International Consumer Electronics Show (CES).

About the Microsoft eHome Division

The eHome Division is a new business unit formed in February 2001 with the mission of extending the PC’s capabilities to deliver exciting and affordable connected home experiences to everyday consumers. These experiences will leverage the power and intelligence of the PC while offering simplicity and convenience to consumers. The eHome division’s goal is to develop new technologies so consumers can enjoy whole-home entertainment, communications and control experiences where, when and however they want them. The eHome Division is part of Microsoft’s Platform Group.

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, Windows and Windows Media 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.

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