StarSight Telecast Signs Memorandum of Understanding with Microsoft Corporation to Cross License Technology; StarSight Telecast Will Receive $20 Million License Fee From Microsoft

Business Wire, August 19, 1996

FREMONT, Calif.--(BUSINESS WIRE)--Aug. 19, 1996--StarSight Telecast, Inc., the leader in electronic program guides (EPG), today announced that it has signed a Memorandum of Understanding to cross license technologies with Microsoft Corporation.

Under the proposed agreement, Microsoft will pay StarSight Telecast $20 million for a fully paid-up, non-exclusive, worldwide license for StarSight Telecast's intellectual property.

"This announcement reconfirms StarSight Telecast's leadership position in the industry and will enhance our ability to offer leading edge technologies and products for new subscribers," said Brian Klosterman, StarSight Telecast president and chief operating officer. "We are delighted to work with a company of the stature and reputation of Microsoft."

According to Craig Mundie, Microsoft's senior vice president of the Consumer Platform Division, "This cross licensing agreement with StarSight Telecast gives Microsoft access to enabling technologies for future software products and services on the PC platform, Microsoft and StarSight Telecast expect to have continuing business opportunities together as a result of this licensing arrangement."

StarSight Telecast, Inc. is a publicly held company backed by strategic partners Viacom Inc., THOMSON multimedia S.A., Cox Communications, Inc., Tribune Company, Providence Journal Company and Time Warner, Inc. The company's stock is traded on The Nasdaq Stock Market under the symbol SGHT. -0-

Note to Editors: StarSight Telecast, Inc. World Wide Web Site, http://www.straight.com

StarSight is a registered trademark of StarSight Telecast, Inc. Other product names used herein are for identification purposes only and may be trademarks of their respective companies.

Except for the historical information contained herein, the matters discussed in this news release are forward looking statements that involve risks and uncertainties, including the timely availability and acceptance of new products, the impact of competitive products and pricing, the management of growth, and the other risks detailed from time to time in the Company's SEC reports, including the reports on form 10-K for the year ended December 31, 1995 and on form 10Q for the quarter ended June 30, 1996.

CONTACT: StarSight Telecast Inc., Fremont

Ann L. McDougall, 510/657-9900

or

The Market Relations Group

Sally Erny, 415/354-4486