To: view who wrote (49684 ) 7/23/2000 12:52:48 PM From: John Rieman Read Replies (1) | Respond to of 50808 Thomson, now an equity investor in C-Cube, is going to build Microsoft Xboxes. They encode in Mpeg-2............thomson-multimedia.com THOMSON multimedia selected by MICROSOFT as key technology and component supplier for new Xbox video game console Software Company partners with Consumer Electronics Leader for Optical Technology and Components For New Xbox Devices PARIS, July 19, 2000 - THOMSON multimedia (NYSE: TMS), a global leader in consumer electronics, announced today that it will provide Microsoft with optical disk drive technology and key components manufacturing for Xbox, the software company’s entry into the video games industry The agreement calls for Thomson to provide DVD-ROM drives along with DVD and video compression (MPEG 2) technology for Microsoft’s new video games console, which is scheduled for introduction in 2001. Thomson expects this four-year agreement to result in millions of DVD-ROM drive sales over the life of the project. Xbox is expected to have a major impact on the video game industry with the capability to play future-generation games with movie-quality animation. "We are very excited to be playing a key role in the launch of Microsoft’s first video game console," said THOMSON multimedia's Chairman and CEO, Thierry Breton. "This agreement further extends our strategic relationships with Microsoft and will allow us to maximize our extensive experience in technology development and the manufacture of leading-edge interactive video products." "We look forward to Thomson playing an integral role in making Xbox synonymous with truly great games," said Robbie Bach, senior vice president, Microsoft Games Division. "The inclusion of Thomson’s DVD and video compression technology, along with its DVD-ROM drive, will help bring Xbox’s amazing gameplay to life." To fulfill terms of the agreement, in a worldwide coordinated group effort, Thomson will leverage the experience of its various operating divisions including Displays & Components and Multimedia Products. The DVD-ROM drive, which accepts and reads the optical codes for the gaming discs, is an important Xbox component, and Thomson is one of the world’s largest suppliers of key optical modules for DVD and CD players. The company’s Optical Key Modules Components Operation produced some 15 million units in 1999. About THOMSON multimedia With sales of 6.7 billion Euros (U.S. $ 6.5 billion) in 1999 and more than 55,000 employees in more than 30 countries, THOMSON multimedia (Paris Sicovam: 18453) (NYSE: TMS), is the world's fourth largest producer of consumer electronics. The Group has four principal activities: Displays and Components, Consumer Products, New Media Services, and Patents and Licensing. THOMSON multimedia engineers, manufactures, and markets display components and consumer products such as televisions, VCRs, audio systems, digital decoders, DVD players and professional video equipment under the popular THOMSON and RCA brand names. For more information: www.thomson-multimedia.com Contact THOMSON Press Marc Meyer Tel: +33 (0)1 41 86 50 03 Corpcom@thmuti.com Jean-Loup Bourgois Tel: +33 (0)1 41 86 55 90 Bourgoisj@thmuti.com Dave Arland (United States) Tel: +1 317 587 4832 Arlandd@tce.com James Harper (United States) Tel: +1 317 587 4450 Harperj@tce.com Investors relations Stéphane Rougeot Tel: +33 (0)1 41 86 52 97 Rougeots@thmulti.com About Microsoft Founded in 1975, Microsoft (Nasdaq MSFT) is the worldwide leader in software 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. For Microsoft press inquiries Kerstine Johnson (United States) Tel: +1 323 857 9100 kerstine.johnson@edelman.com DISCLAIMER: This press release contains forward-looking statements regarding prospects for 2000 that involve a number of risks and uncertainties. Among the factors that could cause actual income to differ materially from those expected are the following: business conditions and general economic conditions; competitive factors such as pricing and marketing efforts of rival companies; timing of product introductions; ability of contract manufacturers to meet product price objectives and delivery schedules; legislative, regulatory, and industry initiatives that may affect planned or actual product features and marketing methods; and the pace and success of product research and development. For more information on the potential factors that could affect the company’s financial income, please review the relevant SEC filings.