REDMOND, Wash. - April 28, 1999 - Microsoft Corp. today announced the formation of its Streaming Media Division, devoted to developing and marketing technologies and solutions for consumer and business digital-media applications. This new division joins the two existing divisions under Senior Vice President Jim Allchin (Consumer Windows^® Division and Business and Enterprise Division) to provide Microsoft with the resources and business focus it needs to deliver industry-leading streaming media technology for applications ranging from music, radio, news and events to online training and corporate communications. With these divisions combined into one organization under Allchin, customers will benefit from even deeper investment in digital media support in the Windows 98 operating system, Windows 2000 and future versions of Microsoft^® operating system platforms.

The PC is becoming a ubiquitous entertainment and business communications platform for local and streaming audio and video. As end-user behavior shifts to encompass these new technologies, vendors are challenged to provide consumers and knowledge workers with a superior digital media experience while enabling business managers and content providers to develop profitable business models and extend their reach into new markets. Microsoft's new Streaming Media Division is focused solely on supplying leading-edge technology and solutions through Windows Media™ Technologies to ensure these goals are met for all Microsoft customers.

"Both our business customers and home PC users are realizing huge benefits from the PC as a digital media platform," said Steve Ballmer, president of Microsoft. "By creating a division dedicated to building the industry's best streaming media platform, Microsoft is sending the message that customers can choose us, and trust us, to deliver the solutions they need over the long term."

The Streaming Media Division, which develops and markets Windows Media Technologies, is headed by Anthony Bay, general manager, reporting to Allchin. Will Poole, senior director, also reporting to Allchin, is responsible for marketing and business development, including managing Microsoft's relationships with the key Internet content providers and infrastructure vendors.

About Windows Media Technologies

Windows Media Technologies, including the Windows Media Player, Windows Media Services, Windows Media Tools and Windows Media Audio SDK, is available now for customers of Windows to download free at http://www.microsoft.com/windows/windowsmedia/ (connect-time charges may apply). The latest release, Windows Media Technologies 4.0, provides content providers, solution providers and software developers with the industry's best audio and video quality, a flexible content rights management system, and improved electronic-commerce solutions.