Microsoft TV Solidifies Lead in Providing New Digital TV Software Solutions In Latin America

REDMOND, Wash., July 29, 2003 — Microsoft Corp. today demonstrated its leadership in the Latin American region by announcing new customers and software deployments. Cablevisin Mexico has commercially launched Microsoft®
TV Interactive Program Guide (IPG) following a deployment process that took less than 30 days and conversion of all digital subscribers from the previous guide to Microsoft TV IPG in a single evening.

In addition, both Megacable, Mexico’s largest multiple service operator (MSO), and Cablevisin Monterrey have scheduled launches of Microsoft TV IPG and Microsoft TV Advanced starting later this summer.

Microsoft also announced that as a result of its relationship with Digital Latin America (DLA), PCTV, the major cable consortium for Mexico, plans to deploy Microsoft TV IPG and Microsoft TV Advanced later in 2003. With the addition of PCTV to the Microsoft TV customer list, it is estimated that Microsoft TV software could reach more than 2 million cable subscribers, the majority of the Mexican marketplace. In addition, Microsoft announced that Cabletica, a leading MSO in Costa Rica, has agreed to deploy Microsoft TV IPG on its digital cable networks.

IPG Deployment at Cablevisin Mexico

The first commercial deployment of Microsoft TV IPG in Latin America is now complete. Cablevisin Mexico rolled out the fast, easy-to-use guide to its subscribers after successful field trials showed enthusiastic customer response. The seamless deployment process was completed in less than 30 days, and the guide was enabled for all of Cablevisin’s digital subscribers in a single night. Cablevisin Mexico also plans to deploy the new Microsoft TV Foundation Edition digital TV software solution in 2004.

“Deploying Microsoft TV software has given our subscribers a highly interactive, personalized viewing experience that puts an exciting range of content and services at viewers’ fingertips,”
said Jean Paul Broc, chief executive officer of Cablevisin Mexico.
“We’re thrilled with the responsiveness of the software, and we’re excited to follow up this service with Microsoft TV Foundation in the future.”

Scheduled Deployments at Cablevisin Monterrey and Megacable

Cablevisin Monterrey and Megacable both plan to deploy Microsoft TV IPG and Microsoft TV Advanced software beginning in this summer. Cablevisin Monterrey plans to launch on July 31 and Megacable is scheduled to launch its services in August.

“Our trial with Microsoft TV Advanced has been a hit, and we’re thrilled to extend this experience to our entire digital subscriber base,”
said Manuel Gonzalez Gonzalez, chief executive officer of Cablevisin Monterrey.
“Microsoft TV brings more value to us and our subscribers, and supports our vision of a fully digital network, by delivering a great user experience via software that will scale to support even more advanced services in the future.”

“Megacable, while launching IPG and Advanced products, is placing a stronger emphasis on Microsoft TV Advanced because of our belief in interactive services via a broadband pipe. Interactive services, whether through the TV or the PC, are the way to go in the future. At Megacable, we have been very successful in deploying broadband services, thanks to our fully bidirectional network and the expertise we’ve developed in recent years. This new platform will enhance our leadership against any possible future competition,”
said Enrique Yamuni, CEO of Megacable.

PCTV

PCTV, the cable consortium that represents more than 95 percent of the Mexican cable industry, also plans to provide digital TV services to its members using Microsoft TV IPG and Microsoft TV Advanced software. With more than 1,800,000 cable subscribers, PCTV supports both small and medium-sized systems and some of the largest MSOs in Mexico.

“PCTV selected Microsoft TV because its products best scale to support a broad range of digital TV services. From a fast guide that facilitates basic digital service to advanced solutions that support interactive services like Internet browsing and instant messaging, Microsoft offers products that meet the needs of our diversified member base,”
said Eugenio Dubernard, CEO of PCTV.

With the addition of PCTV, Microsoft is working with most top Mexican MSOs and will be in a strong position to reach the majority of the marketplace with its software.

Cabletica

Cabletica, with an approximately 50 percent market share in Costa Rica, plans to roll out Microsoft TV IPG to its digital cable base in the San Jose area this fall.

“We selected Microsoft TV IPG for its ability to run on Motorola’s digital set-tops,”
said Jorge Garro, general manager of Cabletica.
“Deploying Microsoft TV IPG will greatly enhance the value we offer our new digital cable subscribers and will enable us to provide a consistent experience as we add new services over time.”

Digital Latin America

“Much of Microsoft’s success in Mexico can be attributed to our strong relationship with DLA,”
said Kent Daniel, director of business development in the Latin American market for Microsoft TV.
“DLA provides premium content and services to cable companies and offers the Microsoft TV platform suite as part of its bundle package.”

Microsoft will continue to work with DLA to provide solutions for the Latin American marketplace. Together with DLA’s premium content services, the two companies offer a turnkey solution that has provided an incentive for many Latin American MSOs to accelerate their digital upgrades.

“The Latin American market is a hot spot for new digital cable services right now,”
said Tim Fritzley, vice president of sales and solutions for Microsoft TV at Microsoft.
“Microsoft TV now serves three of the largest Mexican cable operators — in addition to one of Costa Rica’s largest digital cable operators. This demonstrates the competitiveness of our products in regions where product quality, innovation and robust on-demand features are the primary concerns for guide selection.”

Microsoft TV Solutions

Microsoft TV IPG is an interactive program guide that improves consumers’ digital TV experience by providing speedy scrolling and channel tuning and by making it fast, easy and intuitive for television viewers to find shows and customize their viewing. Microsoft TV IPG leverages the network operator’s existing broadcast infrastructure by supporting its television listings, interactive advertising, video-on-demand (VOD) services and other features.

Microsoft TV Foundation helps network operators get more value from their digital cable investments, creating a better user experience and better on-demand take rates. It also provides them with the ability to better merchandize digital cable services, including managed content with on-demand storefronts.

The Microsoft TV Advanced solution supports an IPG, Web browsing, e-mail, instant messaging, PC bridging and the capability to browse the Web while watching television with picture-in-picture, exploiting the advanced capabilities of the Motorola DCT5000 platform.

About the Microsoft TV Platform

Microsoft TV is a family of standards-based client and server software products and related developer tools that help network operators create digital TV services that delight subscribers and derive more value from digital TV investments. Microsoft TV enables the delivery of new services such as video on demand, on-demand storefronts, interactive program guides, managed content services, digital video recording, enhanced programming, e-mail, instant messaging and more across a full range of set-top boxes and TV devices. More information about Microsoft TV can be found at http://www.microsoft.com/tv/ .

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.

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