Microsoft Unveils New MSN TV Internet Receiver and Pricing Plans For Consumers Coast to Coast

REDMOND, Wash., June 4, 2002 — The MSN® network of Internet services announced availability today of a new MSN TV Internet receiver manufactured by Thomson’s RCA brand. This new low-cost receiver enables people to access the Internet from their home television set, using a wireless keyboard or remote control. Without an investment in a personal computer, MSN TV service subscribers can surf the Web, send and receive e-mail, chat, and create instant messages using world-class MSN services such as MSN Messenger Service and MSN Search.

“MSN is committed to making the Web incredibly useful for every consumer,” said Richard Bray, vice president of MSN at Microsoft. “For people who have never been on the Internet and who are looking for an inexpensive, simple way to get connected, or for more experienced Web users looking for a secondary way to get online, the MSN TV service continues to be a great solution.”

“We are pleased to work with Microsoft to manufacture and market the RCA RM 2100 Internet receiver in cooperation with the MSN TV service,” said David Spomer, vice president of Digital Decoder Product Management for Thomson. “We believe the MSN TV service is an ideal solution for consumers who seek an outstanding Internet experience via the television set. As more and more consumers are coming online for the first time or desire a secondary Internet service connection, we believe demand will grow for this type of product.”

With the release of the MSN TV Internet receiver, Microsoft is offering two new pricing plans to provide additional flexibility and convenience for subscribers. The Economy plan, available for $9.95 a month, provides MSN TV service subscribers with a way to gradually discover the Internet with five hours of Internet access, and the option to purchase additional hours at $2.95 per hour. For a limited time, Microsoft is also offering free MSN TV service for new or current MSN Internet Access subscribers who purchase a MSN TV Internet receiver as a secondary Internet access device.* The MSN TV service will continue to offer the Unlimited Internet Access Time plan, available for $21.95 a month. Now through Aug. 31, 2002, new MSN TV service subscribers will receive two free** months of service after purchasing at least one month of service.

“We are excited to work with Microsoft to deliver the new MSN TV Internet receiver to consumers nationwide,” said Bill Cody, vice president of Home Theater for Best Buy Company Inc. “We believe that the combination of the new MSN TV receiver, the introduction of new low-cost service packages, and a compelling TV advertising campaign will enable more people to experience the benefits and fun that the Internet has to offer.”

The MSN TV receiver from RCA is available for $99 (MSRP) at Best Buy and Circuit City Stores Inc. stores across the United States. Additional information on MSN TV service, as well as the names and locations of retailers, can be found at or by calling (800) 469-3288.

About MSN

MSN attracts more than 270 million unique users worldwide per month. Globally available in 34 markets and 18 languages, MSN is a world leader in delivering Web services to consumers and digital marketing solutions to businesses worldwide. The most useful and innovative online service today, MSN brings consumers everything they need from the Web to make the most of their time online. MSN is located on the Web at . MSN worldwide sites are located at .

About Microsoft

Founded in 1975, Microsoft Corp. (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.

* All current MSN TV service subscribers, MSN Internet Access subscribers, and potential subscribers who own or are willing to purchase a PC and WebTV® or MSN TV receiver (with the exception of MSN Broadband, Triple Play, Knowledge Networks and Rogers Cable customers) are eligible for the MSN One Plan. MSN Internet Access and MSN TV service accounts must be in the same household. Payment by credit card required. Concurrent access to the Internet via MSN TV service and MSN Internet Access available with the use of two phone lines without charge for a limited time only. Monthly service fee required. Requires a monthly subscription to MSN Internet Access (on a home PC) and is subject to acceptance of the MSN Internet Access Subscription Agreement and MSN TV Service Terms of Service. MSN TV services and MSN Internet access are available as a local call in most areas. In some areas, long-distance telephone toll charges may apply. To check local access for MSN TV service, call (800) 469-3288. To check local access for MSN Internet Access, please check with your telephone company.

** Details of the MSN TV Service Get Two Months Free Promotion. TWO MONTHS FREE AFTER PAID SERVICE: Not valid with any other MSN TV-related offers. Offer valid only for new subscribers who either receive as a gift, or purchase from a participating retailer (excluding the Home Shopping Network), a new MSN TV Internet Receiver or WebTV Receiver (excluding DISHPlayer™ and UltimateTV® satellite receiver systems and La-Z-Boy® recliner receiver system) between May 1, 2002, and Aug. 31, 2002; activate your new account between May 1, 2002, and Sept. 30, 2002; accept the terms of service; pay for the flat monthly or base fee and remain on the service for at least the first month (the subscription fee for MSN TV service is a flat monthly fee in most cases; Economy plan subscribers pay a base fee of $9.95 per month); and return this original and completed “Get two months free with paid service” promotion coupon postmarked no later than Oct. 31, 2002. Your account will be credited for two months of the flat monthly or base fee, based on the plan rate that is in effect for your account at the time of processing. Economy plan subscribers are responsible for all charges in excess of the base five hours, in accordance with that plan’s terms. The offer is not available to new subscribers who are activating a previously used WebTV or MSN TV Receiver unless it is a refurbished unit that the subscriber has purchased from a participating, authorized WebTV or MSN TV retailer. Not responsible for lost, late, mutilated, misdirected or postage-due requests. Valid only within the 50 United States and the District of Columbia. Void where prohibited, taxed or restricted by law. Must be 18 years of age or older. Limit one offer of free service per receiver and not combinable with other offers from Microsoft Corp. or its affiliates. We reserve the right to modify or withdraw this offer at any time. See participating retailer or call (877) 932-8857 for full offer details. Offer does not cover any associated local or long-distance telephone toll charges. MSN TV services are available as a local call in most areas. In some areas, long-distance charges may apply. To check local access, call (800) 469-3288.

Microsoft, MSN, WebTV and UltimateTV 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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