/C O R R E C T I O N -- Microsoft Corp./

/C O R R E C T I O N -- Microsoft Corp./

In the news release, /C O R R E C T I O N -- Microsoft Corp./ issued yesterday, Sept. 28 by Microsoft Corp. (Nasdaq: MSFT) over PR Newswire, which was sent to clarify inaccuracies in the release Microsoft to Put Zune Experience in Consumers' Hands on Nov. 14, we are advised by the client that in the second paragraph, the first bullet should read "and a built-in FM tuner" rather than "FM transmitter" as the original correction indicated. Complete, corrected release follows:

Microsoft to Put Zune Experience in Consumers' Hands on Nov. 14

Zune device to retail for $249.99.

REDMOND, Wash., Sept. 28 /PRNewswire-FirstCall/ -- Microsoft Corp. (NASDAQ:MSFT) is putting the social into digital music, starting this holiday. Today the company announced that the Zune(TM) digital media player and online service will be available to consumers in the U.S. on Nov. 14, 2006, just in time for the holidays. The Zune device will retail for $249.99 U.S. (ERP) and will create new ways for entertainment fans to connect and share media experiences device-to-device through the use of wireless technology and new software scenarios.

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

For $249.99, consumers will get an incredible entertainment experience right out of the box:

-- 30GB digital media player will come equipped with wireless
functionality for Zune-to-Zune sharing of music, pictures and home
recordings; a bright, three-inch LCD video screen that works in
portrait or landscape mode to view pictures and videos; and a built-in
FM Tuner. The device will be available in three colors: black,
brown and white.
-- A selection of preloaded content including songs, music videos and film
shorts are installed on the device's hard drive to help consumers
discover new artists and entertainment.

Zune makes it easy to find music you love -- whether it's songs in your existing library or new music from the Zune Marketplace:

-- Its dynamic music service will be continually updated with new content
and experiences so there is always something to discover. The Zune
Marketplace lets users browse and purchase songs individually.
-- A Zune Pass subscription gives consumers access to millions of songs
for $14.99 per month.
-- Users can purchase songs individually using Microsoft(R) Points for 79
points per track. Similar to a pre-paid phone card, Microsoft Points is
a stored value system that can be redeemed at a growing number of
online stores, including the Xbox Live(R) Marketplace.

In addition, consumers can choose from a full line of accessories to enhance the Zune experience and help Zune users enjoy their entertainment where they want to, at home or on the road. Accessories range in price from $19.99 to $99.99.

"On Nov. 14 we're delivering not only a device, but a shared, social experience that will be shaped by the collective imagination of consumers," said Chris Stephenson, general manager of global marketing for Zune. "We're infusing the spirit of discovery and sharing into everything we do -- from the experience we crafted around the device and service to pre-loading music and videos on every device to expose people to something new."

Pre-Loaded Content

Zune is a vehicle to explore new sounds and experiences. With that in mind, Microsoft pre-loaded each Zune device with a variety of songs and music videos from hot, new artists as well as some fun films and images. With something for everyone, the pre-loaded Zune content may just help you discover your new favorite band. Zune preloaded content includes the following:

Audio Tracks
-- Band of Horses, "Wicked Gil" (Sub Pop Records)
-- Bitter:Sweet, "The Mating Game" (Quango Music Group)
-- CSS, "Alala (Microsoft edit)" (Sub Pop Records)
-- Darkel, "At The End of The Sky (edit)" (Astralwerks)
-- Every Move a Picture, "Signs of Life" (V2)
-- Small Sins, "Stay" (Astralwerks)
-- The Adored, "Tell Me Tell Me" (V2)
-- The Rakes, "Open Book" (V2)
-- The Thermals, "A Pillar of Salt" (Sub Pop Records)

Music Video
-- 30 Seconds to Mars, "The Kill" (Virgin Records)
-- BT, "1.618" (DTS Entertainment)
-- Chad VanGaalen, "Red Hot Drops" (Sub Pop Records)
-- Coldcut featuring Roots Manuva, "True Skool" (Ninja Tune)
-- CSS, "Let's Make Love and Listen to Death From Above" (Sub Pop Records)
-- Fruit Bats, "Live: The Wind That Blew My Heart Away" (Sub Pop Records)
-- Grandaddy, "Elevate Myself" (V2)
-- Hot Chip, "Over and Over" (Astralwerks Records)
-- Kraak & Smaak featuring Dez., "Keep Me Home" (Quango Music Group)
-- Kinski, "Live: The Snowy Parts of Scandinavia" (Sub Pop Records)
-- Paul Oakenfold, "Faster Kill Pussycat (Featuring Brittany Murphy)"
(Maverick Records)
-- Serena-Maneesh, "Drain Cosmetics" (Playlouderecordings)

Film Shorts
-- 5 Boro: "A New York Skateboarding Minute" (Skateboarding)
-- Radical Films: "Kranked - Progression" (Mountain Biking)
-- TGRTV The North Face (Skiing/Snowboarding)

Images

-- A variety of images to personalize a Zune device, including 12 classic rock posters from "Art of Modern Rock"

Zune Accessories

For entertainment fans who want to experience their media from anywhere, Microsoft will offer the following accessories:

-- Zune Home A/V Pack. The Home A/V Pack includes everything you need to
amplify your Zune experience. This set of five products integrates Zune
with your big-screen TV and the best speakers in your house. The
wireless remote puts you in control from virtually anywhere in the
room. When you buy the Zune Home AV Pack, you'll get the AV Output
Cable, Zune Dock, Zune Wireless Remote with Lithium Battery, Zune Sync
Cable and Zune AC Adapter for $99.99.
-- Zune Travel Pack. The Travel Pack includes everything you need to
travel with your Zune device in style. This set of five products is
designed to keep you and your friends and family entertained while you
travel. When you buy the Zune Travel Pack, you'll get the Zune Dual
Connect Remote, Zune Premium Earphones, Zune Gear Bag, Zune Sync Cable
and Zune AC Adapter for $99.99.
-- Zune Car Pack. The Car Pack includes everything you need to hit the
road with your Zune device. With AutoSeek, setup is easy, and you can
enjoy your music on the go and charge at the same time. When you buy
the Zune Car Pack, you'll get the FM Transmitter with AutoSeek and the
Zune Car Charger for $79.99.

Sold Individually
-- Zune AV Output Cable. The A/V Output Cable lets you connect your Zune
device to a TV and home stereo. Ideal for listening to music and
showing pictures and video, the A/V Output Cable is simple to set up
and use, and will retail for $19.99.
-- Zune AC Adapter. The AC Adapter lets you charge your Zune device
without a PC. For convenience, the AC Adapter will charge your Zune
device in about three hours and will retail for $29.99.
-- Zune Sync Cable. The Sync Cable lets you connect your Zune device to
your PC or the Zune AC Adapter (sold separately). It works as a
replacement for your original sync cable or as a spare for travel and
charging, and will retail for $19.99.
-- Zune Car Charger. The Car Charger lets you charge your device in the
car while listening to your favorite music and even while using the
FM transmitter with AutoSeek (sold separately). The Car Charger will
retail for $24.99.
-- Zune Dock. The Dock elegantly displays your Zune device anywhere in
your home or office. Featuring a connector port and an audio/video
output, the Dock is ideal for syncing, charging and connecting with
home A/V equipment. (A/V connectivity requires the Zune A/V Output
Cable, sold separately.) The Dock will retail for $39.99.
-- Zune Wireless Remote for Zune Dock. Designed for use with Zune Dock
(sold separately), the Wireless Remote lets you control your device
from across the room. The Wireless Remote gives you quick access to
your current playlist as well as full control over menu navigation and
volume. The Wireless Remote will retail for $29.99.
-- Zune Dual Connect Remote. The Dual Connect Remote offers convenient
playlist control and two headphone jacks with independent amplifiers
and volume controls so you can listen with a friend or family member.
The Dual Connect Remote will retail for $29.99.
-- Zune FM Transmitter With AutoSeek. The FM Transmitter with AutoSeek
lets you wirelessly listen to music through your car's stereo through
the FM radio. AutoSeek automatically finds the optimal station so it's
easy to set up, and will retail for $69.99.
-- Zune Gear Bag. The Gear Bag lets you bring Zune and related accessories
with you wherever you go. The Gear Bag comes with a rugged exterior and
fitted compartments to protect your device while you travel. The Gear
Bag will retail for $29.99.
-- Zune Premium Earphones. Designed exclusively for use with Zune, the
Premium Earphones produce superior sound and feature a noise-isolating,
in-ear design. With a convenient storage case and three earpiece sizes
to choose from, you can listen to your music with added comfort and
quality. The Premium earphones will retail for $39.99.

The Next Step in Connected Entertainment

In addition to the rich service and Zune-to-Zune sharing capabilities available at launch, the built-in wireless technology and powerful software provide a strong foundation for Zune to continue to build new shared experiences around music and video. "We're offering a compelling experience right out of the box and providing customers with a solid base to customize and personalize their entertainment," Stephenson said. "This is just the beginning."

About Zune

Zune is Microsoft's music and entertainment platform that provides an end- to-end solution for Connected Entertainment. The Zune experience includes a 30GB digital media player, the Zune Marketplace music service, and a foundation for an online community that will enable music fans to discover new music. Inspired by the vast and varied community of music fans, Zune focuses on helping emerging artists shape the digital canvas. Zune is part of Microsoft's Entertainment and Devices division and supports the company's software-based services vision to help drive innovation in the digital entertainment space. More information can be found online at http://www.microsoft.com/presspass/presskits/zune .

About Microsoft

Founded in 1975, Microsoft is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Prices herein are estimated retail prices. Actual retail prices may vary.

NOTE: Microsoft, Zune, Xbox and Xbox 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.

For Zune b-roll: Please visit http://www.thenewsmarket.com/microsoft .

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk photodesk@prnewswire.com
Source: Microsoft Corp.

CONTACT: Kyrsa Dixon, +1-206-223-1606, or kyrsa.dixon@edelman.com, or
Kristin Oke, +1-206-223-1606, or kristin.oke@edelman.com, both of Edelman, for
Microsoft

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

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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