Microsoft Announces Acquisition of VXtreme

Rolls Out Streaming Multimedia Strategy With Release of NetShow 2.0

Support From More Than 30 Industry Leaders Provides Solid Foundation For Growth of Streaming Media Market

REDMOND, Wash. - Aug. 5, 1997 - Microsoft Corp. today announced it has acquired VXtreme Inc., the Sunnyvale, Calif.-based developer of award-winning streaming media solutions. In a related move, Microsoft also announced the release of the Microsoft® NetShow™ 2.0 streaming media server. Together with additional announcements from more than 30 industry leaders, these events will encourage the growth of a broad streaming media industry, allow Microsoft to provide the industry's most comprehensive support, and accelerate adoption of streaming media for in-house corporate use. Today's announcements complement Microsoft's recent news that it would license technology from Progressive Networks Inc. and integrate NetShow into Microsoft Site Server.

"The Internet and intranets are empowering technologies that advance the functionality of broadcast networks such as radio, television, cable and satellite," said Bill Gates, chairman and CEO of Microsoft. "Our goal is to enable everybody - media companies, businesses and consumers - to receive, originate and interact with these next-generation broadcasts. That's why Microsoft is making significant investments in this technology and integrating it into our Windows® and BackOffice® platforms."

Microsoft to Take Leadership Role in Streaming Media

All of Microsoft's recent moves in the streaming media market are geared toward benefiting customers, developers, end users and the industry as a whole in the following ways:

A full list of third-party announcements is available at

VXtreme Acquisition Brings Microsoft Superb Technology, Personnel and Customers

The acquisition of VXtreme is a key part of Microsoft's streaming media strategy. VXtreme has been an innovator in the streaming media market, building adaptive compression technology that dynamically adjusts to available bandwidth. The company has attracted top customers including CNN Interactive and CNNfn, The Financial Network, Bridge Information Systems Inc. and General Electric Co.

"VXtreme has developed superb compression technology and network delivery solutions that fully complement our streaming media product strategy," said Paul Maritz, group vice president, platforms and applications at Microsoft. "We look forward to having VXtreme's excellent development team join Microsoft to work on innovating and integrating VXtreme technology into NetShow and Site Server."

"This partnership marries Microsoft marketing expertise and strong development framework with cutting-edge streaming media technology from VXtreme," said Pete Mountanos, CEO of VXtreme. "Together, we'll define future streaming media standards and quality levels."

NetShow 2.0 Now Available

Microsoft's streaming media server, NetShow 2.0, is available worldwide as a free Web download product until the end of the year (connect-time charges may apply). NetShow is Microsoft's technology for streaming production-scale video, audio, and audio with synchronized images over the Internet and corporate intranets. More than 135,000 broadcasters, corporations and Web developers have downloaded the product during its prerelease testing period, and more than 11 million users have downloaded the NetShow 2.0 player.

"We're very pleased with NetShow, said Lora Jackson, manager, Internet technology, Taco Bell Corp. "We use it to share video and other multimedia content over the Internet and our intranets. The tight and simple integration with Microsoft Internet Information Server, along with its incredible ease of use, makes this an invaluable tool in delivering cost-effective business value over the Internet."

The benefits of NetShow 2.0 for broadcasters, IS managers, Web developers and end users include the following:

The NetShow 2.0 client is available for the Windows 95 operating system and Windows NT, Windows 3.1 and UNIX and will soon be available for the Macintosh.

Founded in 1975, Microsoft (NASDAQ "MSFT") is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.

Microsoft, NetShow, Windows, BackOffice and Windows NT are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

Other product and company names herein may be trademarks of their respective owners.

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