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

REDMOND, Washington and LONDON, June 28/PRNewswire/ --

- BT Plans to Test Services in Early 2006

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.

(Logo: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO

http://www.newscom.com/cgi-bin/prnh/20050627/BTLOGO )

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.

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

Source: Microsoft Corp.

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
Photo: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO
http://www.newscom.com/cgi-bin/prnh/20050627/BTLOGO
AP Archive: http://photoarchive.ap.org, PRN Photo Desk photodesk@prnewswire.com

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