Telecom Italia Trials IPTV Services With Microsoft

REDMOND, Wash., and MILAN, Italy, Sept. 10, 2004 — Microsoft Corp. and Telecom Italia today announced a plan to jointly test next-generation television services using the Microsoft®
TV Internet Protocol Television (IPTV) software platform. The announcement demonstrates Microsoft’s significant momentum in working with the world’s leading network operators to bring next-generation television services to consumers via the operators’ broadband network infrastructures.

Telecom Italia joins several other top-tier telecommunications companies worldwide, including Bell Canada, Reliance Infocomm Ltd., SBC Communications Inc., Swisscom/Bluewin and others working with the Microsoft TV IPTV platform, to take advantage of the significant growth opportunities IPTV represents.

“We are extremely pleased to trial the Microsoft TV IPTV platform, which enables the development of integrated broadband services,” said Massimo Castelli, Wireline marketing director, Telecom Italia.

“Testing the Microsoft TV IPTV platform will help Telecom Italia realize even more value from its existing broadband network,” said Moshe Lichtman, corporate vice president of the Microsoft TV Division. “Leading operators in the telecommunications market recognize the significant potential of IPTV to extend their business in new ways that bring exciting new services to their customers and real benefits to their bottom line.”

The Microsoft TV IPTV platform enables broadband network operators to deliver engaging, high-quality video content and services to their customers using their existing and next-generation networks. The platform combines industry and Microsoft innovations to support cost-effective and secure delivery of the full set of today’s pay-TV service offerings, including standard- and high-definition channels, on-demand programming, digital video recording, and interactive program guides. The platform also offers enhanced features including instant channel changing and picture-in-picture functionality using multiple video streams. Unlike most conventional pay-TV delivery systems in homes today, the Microsoft TV platform allows network operators to integrate the delivery of pay-TV services with other broadband services delivered to PCs, game consoles and other devices in the home using a common set of back-office and network systems.

About Telecom Italia

The Telecom Italia Group is a major Italian enterprise and a key European strategic ICT player. Driven by technological innovation, a focus on the customer and a commitment to service excellence, Group companies — spearheaded by Telecom Italia, TIM, Telecom Italia Media, Finsiel, Telecom Italia Lab and Olivetti Tecnost — operate in fixed-line and mobile telecommunications, Internet and media, information technology, R & D, and office and system solutions.

The Telecom Italia Group showcases Italian technology in products and services distributed in many countries throughout Europe and the Mediterranean region, and as far afield as South America.

About Microsoft TV

Microsoft TV provides software solutions that help digital TV operators create new services that delight consumers. Designed to help cable providers and telecommunications companies derive more value from digital video and network infrastructure 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 .

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 is a registered trademark 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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