Microsoft and SeaChange Enhance Alliance to Provide Cable Operators With More Flexibility and Innovative On-Demand Services

NEW ORLEANS, May 3, 2004 — Microsoft Corp. and SeaChange International Inc. today announced an agreement at the National Cable & Telecommunications Association’s National Show to extend their joint efforts to provide network operators with flexibility in developing, marketing and deploying video-on-demand (VOD) services. According to the agreement, SeaChange’s VODlink software will be integrated with the Microsoft®
TV Foundation Edition platform, allowing operators to take advantage of VODlink’s value-added capabilities, such as DVD on demand. The agreement affirms SeaChange’s existing commitment to Microsoft TV and ensures support of SeaChange VODlink in future versions of Microsoft TV Foundation Edition and Microsoft TV Interactive Program Guide (IPG) for television operators that choose VODlink services.

Beginning in 2005, cable operators will have the option to use VODlink features integrated with Foundation Edition. The combination of Foundation Edition and VODlink will enable operators to deliver a variety of innovative on-demand services that potentially increase buy rates and derive more value from their existing VOD infrastructure. The VODlink software will be integrated into Foundation Edition, and network operators will license VODlink’s advanced services from SeaChange directly.

The integration of Microsoft TV Foundation Edition and VODlink will provide cable operators with new, advanced capabilities such as incorporating full-motion video into static on-demand graphics, and employing new interactive advertising options and DVD on demand. The simple utility of DVD authoring will help cable operators accommodate a range of new content — including movies and television shows, local programming and long-form advertising — in a timely and cost-effective manner, which will further differentiate cable services from competing satellite services.

Microsoft TV Foundation Edition is a powerful and flexible digital TV software platform that provides cable operators with a comprehensive solution to deploy, market and merchandize premium services such as VOD, high-definition television (HDTV) and advanced support for digital video recording (DVR), including dual-tuner DVR. SeaChange’s VODlink software enables easy and cost-effective deployment of value-added VOD services, increasing operators’ ability to generate revenues with on-demand business models.

“Microsoft TV is bringing powerful new capabilities to cable operators that will help them propel on-demand applications and surpass the expectations of consumers,” said Bill Styslinger, president and CEO of SeaChange International. “The integration of VODlink with Microsoft TV Foundation Edition will open up a range of possibilities for innovative digital TV applications.”

“In the dynamic digital television market, our mission with Microsoft TV is to provide network operators with a software platform that gives them flexibility and choice to help them succeed in delivering the most-compelling TV services to consumers,” said Lynne Elander, general manager of Marketing for Microsoft TV. “Expanding our relationship with SeaChange and integrating VODlink with Microsoft TV Foundation Edition are examples of our commitment to driving digital TV innovation and bringing the best solutions to market for our customers.”

About SeaChange VOD

SeaChange drives the on-demand business with highly automated and fault-resilient digital video systems. Today, SeaChange VOD Systems provide approximately 880,000 on-demand streams in over 100 deployments, including 17 of the top 25 television markets, for North America’s largest cable operators including Adelphia, Cablevision, Comcast, Cox Communications, Insight, Mediacom, RCN, Rogers and Time Warner Cable.

About the Microsoft TV Platform

Microsoft TV provides software solutions that help pay-TV operators create new services that delight consumers and derive more value from digital video investments. The Microsoft TV product family supports a range of digital video services including interactive program guides, digital video recording, high-definition TV and on-demand programming. The Microsoft TV platform works across a full range of set-top boxes and TV devices. More information about Microsoft TV can be found at .

SeaChange International (Nasdaq: SEAC) provides digital video systems that are changing television. Its powerful server and software systems enable television operators to provide new on-demand services and to gain greater efficiencies in advertising and content delivery. With its Emmy-winning MediaCluster technology, thousands of SeaChange systems are helping broadband, broadcast and satellite television companies to streamline operations, expand services and increase revenues. SeaChange is headquartered in Maynard, Mass., and has product development, support and sales offices throughout the world. Visit .

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

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