Microsoft and XS Network's Partnership Validates the Next Wave of Digital Media by Using .NET Media Series 9 Platform — Code Name ``Corona''

Business Wire, August 5, 2002

Business Editors & High-Tech Writers

HONOLULU--(BUSINESS WIRE)--Aug. 5, 2002

XS Network Showcases Its .NET-Based Live, Broadcast-Ready Camera

Network

Microsoft Corp. and XS Network, a leading provider of multimedia lifestyle marketing and broadcast distribution announced a partnership in which XS Network will showcase Microsoft's new, unreleased .Net Server Environment and the Media 9 Series Platform.

XS Network has implemented .NET as the backbone to its core business -- broadcast creation and distribution based on a worldwide live-camera network.

"(Microsoft's) Digital Media has the potential to redefine the possibilities for new experiences and services over the Internet, in the living room and in companies around the world," said Will Poole, vice president of the Windows(R) Digital Media Division at Microsoft. "Windows Media 9 Series is designed to deliver the major step forward in functionality and performance the industry needs to realize this potential."

XS Network is already using the .NET environment to broadcast its webcasts and movie previews. "This is just a sample of things to come," said Chris Carmichael, chairman of XS Network, "The partnership between XS Network and Microsoft will leverage both companies as being the pioneer in digital-quality broadcasts, with feeds available in multiple formats ranging from high-definition to Interactive Television to 3G cell phones such as the Microsoft SmartPhone."

"Bill Gates has been a continued leader in technology. The .Net Media 9 Series Platform will change the architecture of the entire industry," Carmichael said. ".NET will also set precedence in the future of Interactive Television. Our camera network is positioned to play a large role in Interactive Television."

Under the terms of the multifaceted partnership, both companies will share in the deployment of resources to manage the tools, consulting and support required for XS Network to maximize their ability to provide critical media services that showcase Microsoft's products.

As part of the XS Network's digital infrastructure, they have installed Hawaii's first island-wide wireless and satellite network and are already working with Outrigger Hotels & Resorts to provide high-bandwidth media solutions to their 45 properties throughout the Pacific Rim. XS Network has also begun installation on their network at The Turtle Bay Resort, on the remote side of Oahu's North Shore. The wireless and satellite network allows XS Network to put broadcast-ready cameras at otherwise inaccessible locations around the world.

XS Network is delivering reliable, real-time broadcasts to audiences while at the same time utilizing powerful advertising and logging features to generate and track revenue. XS Network's dynamic content programming capabilities and server-side play-list support enable them to control their ad-driven business activities with real-time ad insertion and the ability to cross-market digital media without interrupting the audience's viewing experience.

For example, the company can dynamically play a movie preview before or during a webcast or push the sale of an Xbox game while watching a surf contest on XS Network's online property, XSCity.com.

.NET prides itself on being a simple, yet robust solution. After several months of having .NET in production, XS Network has validated those claims. The company has also taken advantage of .NET's Fast Stream technology. Fast Stream automatically optimizes the delivery of streaming audio and video to take advantage of the full bandwidth available to the user.

This reduces the impact of congestion on the Web while bringing home-theater-like digital media to their audience. The technology also reduces costs because it can serve up twice as many streams as was able by the previous generation of media servers.

About XS Network

Based in Aliso Viejo, Calif., XS Network Inc. is a privately held lifestyle marketing and multimedia broadcast distribution company. Its exclusive technology, patents and partnerships with businesses worldwide has the company positioned to be the leader in the interactive live broadcast market. The company creates licenses and distributes its content for television, HDTV, wireless and Web applications.

About Microsoft

Founded in 1975, Microsoft (Nasdaq:MSFT) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software -- any time, any place and on any device.

Note to Editors: The names of actual companies and products mentioned herein may be the trademarks of their respective owners.