Microsoft Extends Agreement With Thomson to Manufacture Next-Generation MSN TV Set-Top Box

REDMOND, Wash. and INDIANAPOLIS, Aug. 2, 2004 — MSN
TV service ( ) from Microsoft Corp., a leading provider of Internet service on television, and Thomson (Euronext Paris: 18453, NYSE: TMS), the world leader in integrated solutions (technologies, equipment and services) for the entertainment and media industries, have entered into an agreement to develop a broadband home-network-enabled version of Microsoft’s MSN TV Internet receiver. The new system is a complete overhaul of the existing device and service based on standard Microsoft®
technologies and incorporates new advanced technology from Thomson. The product will be available through major retailers in time for the 2004 holiday shopping season.

“Thomson is a valued partner that shares our vision of making it easy to connect the digital world to your living room,” said Sam Klepper, general manager of MSN TV. “That’s why we selected the company to design and manufacture our next-generation system. It is a giant leap forward that will appeal to a much broader set of consumers.”

“For the past four years we have partnered with the MSN TV organization to give consumers the ease of use, reliability and affordability they value in accessing the Internet on television. As a leader in delivering interactive video solutions to consumers, we are excited to be working with Microsoft on product innovations that will make MSN TV’s service more appealing for users at all levels — including digital media enthusiasts — with exciting new options,” said Keith Wehmeyer, general manager of IP Decoders at Thomson.

Additional information regarding the specifics of MSN TV’s next-generation product and service will be announced at a later date.

About Thomson

Thomson (Euronext Paris: 18453; NYSE: TMS) is the leading provider of technology and service solutions for integrated entertainment and media companies. By capitalizing on and expanding its leadership positions at the intersection of entertainment, media and technology, Thomson provides end-to-end solutions to content creators, video network operators, manufacturers and retailers through its Technicolor, Grass Valley, THOMSON and RCA brands. For more information: .

Thomson’s Broadband Access Products activity, part of Thomson’s Video Network Solutions division, is a leading supplier of digital entertainment receivers to the world’s major satellite, cable and terrestrial broadcasters. It is also one of the leading suppliers of high-speed modems, IP set-top boxes, and telephones to Telecom companies around the globe. Products are marketed under several brands including RCA, Thomson, and SpeedTouch.

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. More information on MSN TV can be found at .

About MSN

MSN attracts more than 350 million unique users worldwide per month. With localized versions available globally in 38 markets and 18 languages, MSN is a world leader in delivering Web services to consumers and online advertising opportunities 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 h .

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, 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 h .

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