MSN TV Service Expands National Retail Distribution

REDMOND, Wash., July 8, 2003 — Microsoft Corp. today announced that MSN®
TV service, a leading provider of Internet service on television, has entered into new relationships with leading consumer electronics retailers to increase the availability of MSN TV service to more than 1,500 locations nationwide. MSN TV service is available through the RCA RM2100 Internet Receiver, which includes a wireless keyboard and remote control for $99* (manufacturer’s suggested retail price). The expanded retail availability of the receiver will help meet increased consumer demand nationally and in select markets. The product has been available nationally since 2001 at Best Buy and Circuit City.

The MSN TV Internet receiver is now available at CompUSA stores across North America and Fry’s Electronics, a consumer electronics specialty store in the western United States. It also is available at retailers in key markets, including RCS Computer Experience and J & R Music & ComputerWorld in the New York metro area, BrandsMart U.S.A. in Florida, and Abt Electronics in the Chicago metro area. In addition, the MSN TV Internet receiver is available via

“Our marketing efforts targeting Internet newcomers looking for an easy-to-use and affordable way to enjoy the benefits of the Web and e-mail are generating increased consumer demand,”
said Sam Klepper, general manager, MSN TV.
“We have carefully selected these new retailers to give interested consumers a wide choice of retail outlets where they can purchase an MSN TV Internet receiver.”

MSN TV is supporting this increased distribution with marketing campaigns designed to target older Americans and other Internet newcomers. MSN TV recently launched campaigns with television spots on national cable, print ads, radio ads and direct mail pieces. The advertisements are targeted to both older Americans and their adult children who purchase MSN TV Internet receivers as gifts.

“MSN TV is an incredible value. It offers consumers Internet and e-mail service through a device located in almost every American home: the television set,”
said John Keating, senior buyer,
“MSN TV is a great addition to the wide selection of products available to consumers via our electronics store.”

“MSN TV is the perfect product for our customers to give as gifts to family members who may be uncomfortable with technology but want to use the Internet and stay in touch via e-mail or instant messaging,”
said Tony Weiss, executive vice president, general merchandise manager, CompUSA.
“MSN TV offers a fun, enjoyable Internet and e-mail experience, and we’re pleased to be offering it to our customers.”

Additional information about MSN TV Internet receiver retailers is available at the following sites:

About MSN TV Service

Based in Mountain View, Calif., MSN TV service is a product group in Microsoft’s MSN division that makes use of everyday technology to help people of all ages and abilities get connected and stay connected to the people around them. By connecting to a television and existing phone line, 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 and MSN Search.

Formerly WebTV® , MSN TV service was acquired by Microsoft in 1997 and renamed in July 2001 to better reflect the natural synergies between the WebTV service and the vast array of Microsoft®
and MSN resources. In June 2002, MSN TV unveiled a new Internet receiver and pricing plans. More information on MSN TV and the new MSN TV service gift certificate program can be found at .

About MSN

MSN attracts more than 300 million unique users worldwide per month. With localized versions available globally in 34 markets and 18 languages, MSN is a world leader in delivering Web services to consumers and digital marketing solutions to businesses worldwide. MSN 8 is the first Internet software product to have earned the trusted Good Housekeeping Seal. 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 (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.

* MSN TV services are available as a local call in most areas. In some areas, long-distance telephone toll charges may apply. To check local access, call (800) 469-3288.

Microsoft, MSN and WebTV 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.

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. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at .

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