MSN and Hearst Magazines Collaborate on Large-Scale Content Projects

REDMOND, Wash. — May 8, 2006 — As part of its ongoing alliance, MSN today announced that it will collaborate on large-scale content projects with Hearst Magazines, one of the world’s largest publishers of monthly magazines, a strategy that will combine Hearst’s premier lifestyle portfolios with unique online programming on MSN. This collaboration will enable MSN to further develop innovative programming for its MSN Lifestyle Channel, serving customers with in-depth, dynamic and interactive content, and provide advanced advertising and sponsorship opportunities.

Under this alliance, Hearst Magazines will contribute editorial content in various forms including articles from the magazines, video interviews, special events coverage, slide shows, blogs and quizzes. The eight participating Hearst magazines — Country Living, Esquire, Good Housekeeping, House Beautiful, Marie Claire, Popular Mechanics, Redbook and SHOP Etc. — cover a wide range of lifestyle topics for both men and women.

“MSN is dedicated to driving user engagement among a variety of audiences by adding original and interactive content to our Lifestyle portfolio,” said Stephen Cvengros, general manager of Channels and Emerging Verticals for MSN. “Further establishing MSN as a media network, the relationship expands the scope and depth of lifestyle programming and content by offering an array of content from some of the best-known, best-loved magazine brands.”

“Hearst has the incredible opportunity to reach the MSN audience of more than 465 million users with our magazine brands on the MSN Lifestyle Channel. By the same token, MSN users will benefit from the rich content and storytelling our magazines can provide,” said Jay Bobowicz, vice president of syndication, business development and partner relations for Hearst Magazines.Not only will this alliance help drive traffic and online subscriptions, but for our monthly magazines, it will also enable us to create fresh content online that will keep us topical and news-focused throughout the month.”

Under the agreement, circulation offers and links to Hearst’s magazine sites are present on most content on MSN Lifestyle Channel.

About Hearst Magazines

Hearst Magazines is a unit of The Hearst Corporation and one of the world’s largest publishers of monthly magazines, with a total of 20 U.S. titles and 145 international editions. Hearst reaches more adults than any other publisher of monthly magazines (76.3 million according to MRI, spring 2005). The company also publishes 19 magazines in the United Kingdom through its wholly owned subsidiary, The National Magazine Company Limited.

About MSN and Windows Live

MSN attracts more than 465 million unique users worldwide per month. With localized versions available globally in 42 markets and 21 languages, MSN is a world leader in delivering compelling programmed content experiences to consumers and online advertising opportunities to businesses worldwide. Windows Live™, a new set of personal Internet services and software, is designed to bring together in one place all the relationships, information and interests people care about most, with enhanced safety and security features across their PC, devices and the Web. MSN and Windows Live will be offered alongside each other as complementary services. Some Windows Live services entered an early beta phase on Nov. 1, 2005; these and future beta updates can be found at http://ideas.live.com. Windows Live is available at http://www.live.com.

MSN is located on the Web at http://www.msn.com. MSN worldwide sites are located at http://www.msn.com/worldwide.ashx.

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 Windows Live 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.

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