Microsoft Works With Mediamatics to Enable Efficient Software DVD Playback on Windows-Based Products With ActiveMovie

Users Gain Broadcast-Quality Video Without High-Cost Hardware; Developers Gain a Broader Market for Interactive DVD Content

SANTA CLARA, Calif. - Dec. 11, 1996 - Microsoft Corp. today announced it is working with Mediamatics Inc., a leading provider of software MPEG solutions, to bring digital versatile disc (DVD) playback to the Microsoft® ActiveMovie™ API. The collaboration will enable cost-effective software-only DVD playback without the need for special add-on hardware.

The relationship will enable users to fully appreciate the advances of DVD on the Microsoft Windows® 95 and Windows NT® operating systems, including high-performance

full-motion video and CD-quality audio playback. Using both MPEG 2 video and AC3 audio decoding in software with ActiveMovie, the solution eliminates the need for additional hardware and makes the DVD features that consumers demand available at a mass-market price.

"We are pleased to work with Mediamatics to enhance ActiveMovie with software AC3 and MPEG 2 and DVD playback ability that is efficient from both a CPU performance and consumer cost standpoint," said Brad Chase, vice president of marketing, Internet client and collaboration division at Microsoft. "We maintain our commitment to emerging multimedia technologies and standards and will continue to build on this design as the DVD market evolves."

"We are excited that Microsoft has selected Mediamatics to help bring DVD solutions to the mass market," said Prem Nath, president and CEO of Mediamatics. "By working with Microsoft to integrate DVD now, we have ensured that our products will provide a seamless transition as consumers move to interactive DVD solutions in the near future."

Microsoft and Mediamatics are making the transition to DVD smoother for developers as well as consumers. The ActiveMovie DVD interface makes it easier for developers to write their application once and have it work with other DVD solutions. Developers can further benefit from the joint support of Microsoft and Mediamatics of the UDF file system and MEI copyright-protection scheme.

Mediamatics, founded in 1993, provides software and semiconductor products enabling full-motion video and high-quality audio on PCs, making them cost-effective entertainment solutions. The company offers highly refined compression technology based on its Collaborative Compression Architecture (CCA). This architecture employs a scalable approach to partitioning system functionality between CPU (via software) and peripheral elements (via VLSI) to achieve the highest quality playback performance while maintaining mass-market cost objectives. Its products are licensed by Microsoft and all major PC OEM manufacturers, making it the world's largest supplier of MPEG 1 decoders. To receive additional corporate and product information, visit Mediamatics' WWW site at (http://www.mediamatics.com/) .

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

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