BT Selects Microsoft TV as Software Platform for TV Over Broadband in the United Kingdom

BT Selects Microsoft TV as Software Platform for TV Over Broadband in the United Kingdom

BT Plans to Test Services in Early 2006

REDMOND, Wash. and LONDON, June 28 /PRNewswire-FirstCall/ -- Microsoft Corp. (NASDAQ:MSFT) and BT today announced BT's intention to use the Microsoft(R) TV Internet Protocol Television (IPTV) Edition software platform to deliver TV over broadband in the United Kingdom. The announcement further strengthens Microsoft's continued commitment to working with the world's leading network operators to bring next-generation television services to consumers.

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BT plans to trial TV over broadband services powered by Microsoft TV IPTV Edition in early 2006, with delivery of a commercial service expected to begin in the summer of 2006.

"BT continues to demonstrate its commitment to broadband in the U.K. through the development of a portfolio of innovative broadband services designed to deliver more and more value to our customers," said Ian Livingston, chief executive of BT Retail. "BT and Microsoft share a common vision for converged entertainment in the home. TV over broadband services will play an important role in BT's triple-play offering for consumers. Our proposed complementary approach of over-the-air broadcast and broadband-delivered video-on-demand, interactivity and enhanced support is the perfect solution and complements existing TV propositions already in the U.K. market. The combination of Microsoft's best-in-class technology with BT's 21st-century network will result in an incredibly exciting set of next-generation entertainment and communication services available to consumers across the U.K."

"BT is a great example of one of the world's leading network operators choosing Microsoft TV as the software platform for its digital TV and converged entertainment services," said Moshe Lichtman, corporate vice president of the Microsoft TV division at Microsoft. "We are very pleased to be working with such a well-respected and innovative operator as BT. Microsoft TV IPTV Edition will enable a full suite of integrated entertainment and communication services that will set the bar for what consumers will expect."

The award-winning Microsoft TV IPTV Edition software platform enables broadband network operators to deliver engaging, high-quality video content and services to their customers using their existing and next-generation broadband networks. The platform combines Microsoft and industry innovations to support cost-effective and security-enhanced 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 consumer homes today, the Microsoft TV platform allows network operators to integrate the delivery of pay-TV services with other broadband services delivered to PCs, telephones, game consoles, mobile devices and other devices in the home using a common set of back-office and network systems.

About BT

BT is one of the world's leading providers of communications solutions serving customers in Europe, the Americas and Asia Pacific. Its principal activities include networked IT services, local, national and international telecommunications services, and higher-value broadband and internet products and services.

BT consists principally of three lines of business:

-- BT Retail, providing a comprehensive range of communications and related services to more than 20 million UK consumers and businesses.

-- BT Wholesale, providing network services and solutions within the UK to more than 600 fixed and mobile operators and service providers including the provision of broadband and private circuits.

-- BT Global Services, providing networked IT services to meet the needs of multi-site organisations globally. BT Global Services operates in more than 130 countries and also offers international carrier services.

In the year ended 31 March 2005, BT Group's turnover was 18,623 million pounds Sterling with profit before goodwill amortisation, exceptional items and taxation of 2,085 million pounds.

BT Group plc is listed on stock exchanges in London and New York. British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and encompasses virtually all businesses and assets of the BT Group.

For more information, visit www.bt.com/aboutbt.

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 is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

NOTE: 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.

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http://www.newscom.com/cgi-bin/prnh/20050627/BTLOGO
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Source: Microsoft Corp.

CONTACT: Microsoft TV Team - The Red Consultancy for Microsoft,
+44 207 025 6500, or microsoftemeatvteam@redconsultancy.com; or BT -
Jon Carter, +44 207 356 4523, or jonathan.carter@bt.com, or Mike Jarvis,
+44 207 356 6045, or michael.2.jarvis@bt.com, both of BT press office, or
BT newsroom (24 hours a day), +44 207 356 5369; or Eileen Connolly of
BT America, +1-908-410-1419, or eileen.connolly@bt.com; or David Clarke of
BT Asia-Pacific, +852 2532 3652, or david.r.clarke@bt.com

Web site: http://www.microsoft.com/
http://www.bt.com/aboutbt

NOTE TO EDITORS: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass 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 http://www.microsoft.com/presspass/contactpr.mspx .

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