Prodigy Internet Collaborates With Microsoft to Create Customized Windows Media Player 7; Media Player Enhances ProdigyDSL Content Offerings

Business Wire, Dec 13, 2000

Business/Technology Editors

AUSTIN, Texas--(BUSINESS WIRE)--Dec. 13, 2000

Prodigy Communications Corporation (NASDAQ: PRGY), the nation's largest retail high-speed DSL Internet service provider, announced today an agreement with Microsoft Corporation to develop a Windows Media Player "skin" for Prodigy members.

The media player will be based on Windows Media Player 7, an easy-to-use, all-in-one tool for discovering and managing digital media, and should be available early next year. ProdigyDSL(R) members will be able to download the co-branded media player, free-of-charge, from the ProdigyDSL(R) homepage (dslhome.prodigy.net) or WindowsMedia.com (http://windowsmedia.com).

This collaboration between Prodigy and Microsoft will expand the depth and sophistication of broadband features offered to Prodigy's ever-growing customer base of high-speed DSL subscribers. The co-branded media player will be customized to sync with the ProdigyDSL experience.

"High-speed capability DSL ushers in an era of enhanced content experiences, and this relationship fits strongly into Prodigy's strategy of bringing the best technology and entertainment to our members," said Gregory Williams, executive vice president and chief operating officer at Prodigy. "This collaboration also is another step toward ProdigyDSL becoming the instantly-on information, entertainment and communication resource."

"The combination of high-speed DSL and Windows Media technology opens up incredible possibilities for Internet users," said Will Poole, vice president of Microsoft's Digital Media Division. "ProdigyDSL members will gain seamless access to a tremendous variety of audio and video content on the Internet through the familiar Prodigy interface, and the underlying Windows Media technology will help them to manage their favorite audio and video content easily."

The new Prodigy media player will automatically be included in all new ProdigyDSL Customer Welcome Kits. In addition, ProdigyDSL featuring the Windows Media Player will be featured in the Microsoft Broadband Referral Guide at WindowsMedia.com. This showcase provides a means of acquiring new members for Prodigy.

About Prodigy Communications Corporation (www.prodigy.com):

Prodigy Communications Corporation. (NASDAQ: PRGY), since its alliance with SBC Communications Inc. (NYSE: SBC), joining consumer, small business Internet operations, has become the nation's largest provider of retail DSL broadband Internet access to consumers and small businesses. Prodigy Internet(R) delivers fast and reliable Internet access and user-friendly Internet-based products, services and information resources to help its members unlock the potential of the Internet to improve their lives. Prodigy utilizes a nationwide network covering more than 850 cities in all 50 states allowing more than 90% of the United States population to access the Prodigy Internet service with a local telephone call. Prodigy tailors its services and technology to three fast-growing Internet markets: consumers, small business owners and the U.S. Hispanic population. Prodigy Internet features best-of-breed content, Prodigy Instant Messaging, Prodigy Chat, and Prodigy Online Communities combined with the accessibility and freedom of direct access to the World Wide Web for all users. Prodigy Biz Corporation, a subsidiary of Prodigy, offers a powerful suite of specially designed Internet products and services for small business owners. Prodigy(R) en espanol, is the nation's first-ever, fully bilingual Spanish/English-language Internet service created especially for the U.S. Spanish-speaking population.

This press release contains forward-looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the expected benefits from the relationship with Microsoft or its early termination, intense competition in the Company's industry, subscriber turnover, disruption in the Company's network services or in other services provided by third parties, the challenges of integrating the Internet businesses of Prodigy and SBC Communications, Inc., as well as the risk factors detailed from time to time in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission. Prodigy's business and operations are operated by a limited partnership, called Prodigy Communications Limited Partnership, of which Prodigy is the general partner and owns an approximate 57% interest, and SBC Communications owns an approximate 43% interest.