Microsoft Mediaroom Delivers Connected TV to More Than 1 Million Set-Top Boxes

Microsoft’s service provider customers add two new IPTV
subscriber households per minute.

LAS VEGAS — Jan. 6, 2008 — Today at 2008
International CES, Microsoft Corp. announced that its Microsoft Mediaroom
Internet Protocol Television (IPTV) and multimedia platform is delivering video
entertainment experiences to more than 1 million set-top boxes worldwide and
its service provider customers are adding two new IPTV subscriber households
every minute. The Mediaroom platform is on pace to reach 1 million subscriber
homes in the first quarter of 2008. These milestones demonstrate the growing
consumer demand for IPTV and connected television experiences that go beyond
traditional pay-TV offerings. Helping to lead this connected TV revolution,
Microsoft Mediaroom is transforming the way viewers experience television,
movies, music, photos and games in their own homes.

Deployed or being trialed by more than 20 service providers worldwide on
four continents and in 18 countries, Microsoft Mediaroom enables unique
features and experiences, such as simultaneous recording of multiple
high-definition and standard-definition TV channels, personal media sharing,
whole-home and remote digital video recording (DVR), and multiple
picture-in-picture scenarios. The platform also integrates with the Xbox 360
gaming device, bringing together next-generation television and gaming
offerings into an integrated entertainment experience. In addition, Microsoft
Mediaroom allows third parties to create exciting new TV applications and
services that enrich the TV viewing experience through the multimedia
application environment in the platform.

“We’ve received a tremendous response for BT Vision from our customers,”
said Dan Marks, CEO of the BT Vision service from BT, one of the leading
service providers that has deployed television services based on Microsoft
Mediaroom. “We expect to sign up many new BT Vision subscribers in 2008 and
beyond and look forward to bringing them new and connected TV services built on
the Microsoft Mediaroom platform.”

“The Microsoft Mediaroom platform is a key component in our vision to allow
consumers to experience entertainment content on any device, anytime,
anywhere,” said Enrique Rodriguez, corporate vice president of the Connected
Television Division at Microsoft. “It is very rewarding to see this vision
materialize with the support of our partners and customers. It is even more
gratifying that the opportunity ahead for consumers to experience connected TV
is even bigger than we had envisioned.”

Further showcasing Microsoft’s commitment to delivering unique connected TV
services to consumers around the world, Microsoft announced several other
Microsoft Mediaroom developments at the 2008 International CES:

  • DVR
    Anywhere. This gives consumers the flexibility to watch their recorded
    programs on any TV in their home, further enhancing the platform’s
    powerful connected TV capabilities. With DVR Anywhere, viewers could begin
    watching a movie in the living room, resume viewing it on the kitchen TV
    during dinner, and finish watching the same movie from the comfort of
    their bedroom. In addition, members of a household will never have to
    fight over the remote control again, due to the capability to watch the
    same or different recorded programs from multiple TVs in the home
    simultaneously while recording other shows to be viewed at their
    convenience.
  • Futuristic
    connected TV applications for Microsoft Mediaroom. Microsoft is partnering
    with ChoiceStream Inc., emuse technologies, ES3, Showtime Networks Inc.
    and Turner Broadcasting System Inc. to demonstrate applications that
    showcase new connected TV applications and scenarios that are enabled by
    the extensible Microsoft Mediaroom platform. These next-generation
    scenarios will be on display in the Microsoft booth at the 2008
    International CES show.
  • Ecosystem
    partnership with Broadcom. Microsoft and Broadcom Corporation announced a
    collaboration in IPTV products. The collaboration includes Microsoft and
    Broadcom working together to enable the Microsoft Mediaroom client
    software to operate on next-generation set-top boxes utilizing the
    Broadcom BCM7405 system on a chip.

“Demand for connected TV services is increasing exponentially on a global
scale,” said Vince Vittore, senior analyst at Yankee Group Research Inc.
“Microsoft Mediaroom’s reaching 1 million set-top boxes is an important
milestone. Microsoft Mediaroom is giving service providers new ways to
differentiate themselves from the competition and further add subscribers with
the many next-generation connected TV offerings the platform enables.”

The Microsoft Mediaroom platform will be on display at 2008 International
CES at booth No. 7144.

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