Microsoft and Onkyo Announce Two Business Agreements

REDMOND, Wash., and TOKYO — March 20, 2008 — Microsoft Corp. and Onkyo Corp. have signed a broad patent cross-licensing agreement that will enable significant technological innovation in high-quality home entertainment and enhance the overall user experience. The agreement covers a broad range of consumer products and allows greater mutual access to each partner’s respective patent portfolio. Although the contents of the agreement (including the specific financial terms) are confidential, the parties indicated that Onkyo will provide compensation to Microsoft.

The intellectual property (IP) collaboration between Microsoft and Onkyo (which recently acquired Japan-based PC manufacturer Sotec Co. Ltd.) will contribute to the production of high-quality hardware and versatile, reliable software technology. Consequently, this will further promote seamless integration and accelerate innovation in consumer audiovisual (A/V) electronics, personal computing, and home theater custom installation markets.

“When industry leaders collaborate through intellectual property licensing, we foster greater innovation that will benefit the overall IT ecosystem,” said Horacio Gutierrez, vice president of intellectual property and licensing at Microsoft. “We are proud of the quality of our global patent portfolio, and we look forward to continuing to work with Onkyo and other industry leaders to develop new and exciting technologies through our collaborative licensing program.”

Windows Rally Program Agreement

In an additional effort to foster mutual cooperation and to enhance the user experience, Onkyo has entered into the Microsoft Windows Rally program. The Windows Rally program provides Onkyo with access to Microsoft technology, streamlined licensing, and technical guidance for effortless, security-enhanced and reliable connectivity between devices and PCs. Onkyo’s advanced consumer A/V electronics will bring the state-of-the-art connectivity in the home network to customers.

“We’re very excited about this new collaboration with Microsoft,” said Nobuaki Okuda, executive officer of business development at Onkyo. “We think a mix of technology, communication and entertainment enables greater technology solutions. These agreements strengthen our collaborative relationship, which is of immense importance and will further help us address our customers’ needs.”

About Onkyo Corporation

Founded in 1946, Onkyo is a global leader in high-quality Home AV products, including AV receiver-, speaker- and PC-related products. In recent years, building on its core strength in analog technology and its acquisition of leading Japan-based PC manufacturer SOTEC in 2007, Onkyo has been developing personal computers integrated with high-quality audio capabilities. Onkyo also has an active OEM business that includes the production of speakers for the automotive, TV display and entertainment industries.

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Microsoft’s Commitment to Licensing Technology

The licensing agreement is another example of the important role that IP plays in ensuring a healthy and vibrant IT ecosystem. Since Microsoft launched its IP licensing program in December 2003, the company has entered into more than 200 licensing agreements and continues to develop programs that make it possible for customers, partners and competitors to access its IP portfolio. The program was developed to open up access to Microsoft’s significant research and development investments and its growing, broad patent and IP portfolio. In the past year, Microsoft has entered into similar agreements with Alpine Electronics Inc., Fuji Xerox Co. Ltd., Kenwood Corp., Kyocera Mita Corp., LG Electronics, NEC Corp., Nortel Networks, Novell Inc., Olympus Corp., Samsung and Seiko Epson Corp.

More information about Microsoft’s licensing programs is available 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.

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