Motorola and Microsoft Extend Relationship, Add Focus on Integrated Solutions for IPTV Service Providers

CHICAGO June 7, 2005 — Today at SUPERCOMM 2005, Motorola Inc. and Microsoft Corp. announced that the companies are extending their long-standing relationship for digital video solutions to include the emerging Internet Protocol TV (IPTV) market. The companies will collaborate to deliver a seamlessly integrated hardware and software solution designed to enable service providers worldwide to offer compelling, revenue-generating IP video services to their customers.

Motorola and Microsoft will work together to integrate the Microsoft® TV IPTV Edition software platform with the features and functionality included in Motorola’s forthcoming suite of IP set-tops and advanced encoder products. These efforts are expected to provide service providers with a reliable solution that can quickly and easily be deployed to capitalize on the IPTV market opportunity.

Microsoft TV IPTV Edition is a comprehensive software platform that allows broadband providers to deliver compelling digital video services over their existing IP networks. Leading broadband operators worldwide — including Bell Canada, BellSouth, Reliance Infocomm Ltd., SBC Communications Inc., Swisscom/Bluewin and Telecom Italia — are conducting trials or planning to deploy IPTV services based on the Microsoft TV IPTV Edition platform.

“Motorola has a strong reputation and expertise in digital video delivery throughout the industry,” said Phil Corman, director of worldwide partner development for the Microsoft TV Division at Microsoft. “Microsoft and Motorola have a long history working together on cable video solutions and are now extending this relationship to IPTV for broadband operators, technology partners and consumers around the globe.”

“With over 37 million digital set-tops shipped worldwide, Motorola is a leader in designing innovative broadband devices for the connected home. As we leverage this experience to focus on new opportunities like IPTV, we will continue to collaborate with leading software developers like Microsoft to offer service providers a tightly integrated solution,” said John Burke, corporate vice president and general manager of consumer entertainment solutions at Motorola. “The growing demand from service providers for comprehensive IPTV solutions and the market momentum for Microsoft TV IPTV Edition made this a natural next step in our alliance.”

About Motorola

Motorola is a Fortune 100 global communications leader that provides seamless mobility products and solutions across broadband, embedded systems and wireless networks. In your home, auto, workplace and all spaces in between, seamless mobility means you can reach the people, things and information you need, anywhere, anytime. Seamless mobility harnesses the power of technology convergence and enables smarter, faster, cost-effective and flexible communication. Motorola had sales of US $31.3 billion in 2004. For more information: www.motorola.com.

About the Microsoft TV Platform

The Microsoft TV platform is a family of software solutions that help network operators create and deliver new digital TV services that delight consumers. Designed to help cable providers and telecommunications companies derive more value from their digital video and network infrastructure investments, the Microsoft TV family supports a full range of services including interactive program guides, digital video recording, high-definition TV, on-demand programming and Internet Protocol TV (IPTV) services. 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 http://www.microsoft.com/tv.

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.

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

© Motorola Inc. and Microsoft Corp., 2005.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

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