Microsoft’s Million-Member March

REDMOND, Wash., July 15, 2004 — Microsoft Corp. today announced that more than 1 million people are now members of the worldwide Xbox Live (online video gaming service. With peak usage time for Xbox Live between 7:30 and 9 p.m., this thrill-seeking throng is showing that they prefer to play TV.

“Consumers are clearly choosing Xbox Live online video games as the new digital entertainment nirvana,” said Microsoft Senior Vice President of the Home and Entertainment Division and Chief Xbox Officer Robbie Bach. “Our community has reached a million members in record time, and we’ve got hot new games and expanded features that will continue to feed our customer’s almost insatiable appetite for online play.”

This fall, Xbox Live membership promises to grow even more as several blockbuster franchises hit the service. Electronic Arts Inc.’s lineup of popular titles, including “Madden Football 2005,” “NCAA Football 2005” and “FIFA Soccer 2005,” will be Xbox Live -enabled, as will “Halo®
2,”Microsoft Game Studios’ much-anticipated sequel to the best-selling Xbox title of all time.

Also this fall, Xbox Live members can enjoy a selection of quick and easy casual games via a new feature called Xbox Live Arcade. Classic card, puzzle, trivia, retro and action arcade games from publishers such as Atari Corp. and Namco Ltd. will be featured in the Arcade, giving gamers yet another innovative way to play together online.

Xbox Live is currently available in 24 countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Korea, Mexico, New Zealand, Norway, Singapore, Spain, Sweden, Switzerland, Taiwan, the Netherlands, the United Kingdom and the United States.

About Xbox

Xbox Live , which launched in the United States Nov. 15, 2002, allows gamers to play multiplayer Xbox®
games with other gamers worldwide via a broadband connection. With a built-in hard drive and Ethernet port, the Xbox console is the only video game system built from the ground up for online gaming. Xbox Live enables gamers to easily find their friends; talk to other players during gameplay through the Xbox Communicator headset; download current statistics and new levels and characters to their Xbox hard drive; and play online.

About Xbox

Xbox ( ) is the video game system from Microsoft that brings people together for the most exhilarating game and entertainment experiences. Xbox delivers an expansive collection of breakthrough games, powerful hardware and the unified Xbox Live online service. The tag line, “It’s good to play together,” captures the spirit of Xbox as the social hub of the new digital entertainment lifestyle. Xbox is now available in North America, Asia, Europe and Australia.

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.

Microsoft, Xbox Live, Halo and Xbox 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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