BARCELONA, Spain — At 3GSM World Congress 2007, Microsoft Corp. announced Microsoft^® PlayReady™ technology, a new multimedia content access technology optimized to meet the needs of mobile operators and handset manufacturers for digital entertainment and commerce. Supporting multiple content types, and flexible rights, Microsoft PlayReady enables operators to provide a range of new services tailored toward growing consumer interest in mobile digital media.

Leading mobile operators worldwide, including Telefónica, O2, Verizon Wireless, Bouygues Telecom, and Cingular Wireless, now the new AT&T, are today indicating plans to implement Microsoft PlayReady technology. In addition, Microsoft is working with mobile industry software developer PacketVideo to showcase a fully operational demonstration of Microsoft PlayReady for the first time, at the Microsoft booth, No. 1D19 in Hall 1 at the 3GSM conference.

The result of extended dialogue with the mobile industry, Microsoft PlayReady technology enables a broad spectrum of business models such as subscription, rental, pay-per-view, preview and super-distribution, which can be applied to many digital content types and a wide range of audio and video formats. Content types supported include music, video, games, ring tones and images. Audio/video formats supported include Windows Media^® Audio (WMA), AAC/AAC+/HE-AAC, Windows Media Video (WMV), and H.264. Microsoft PlayReady enhancements make it easier for consumers to move their content between their devices, giving them a new level of freedom with their digital content. This technology will be available in the first half of 2007 for handset and device implementation.

“Our wireless partners worldwide asked for a single system to power a growing array of business models and consumer scenarios — the result is Microsoft PlayReady,” said Amir Majidimehr, corporate vice president of the Consumer Media Technology group at Microsoft. “With consumer demand for digital goods of all types growing exponentially, this technology delivers a foundation for the future and accelerates the transparent delivery of rich content to consumers.”

“Microsoft PlayReady technology will be a key enabler for next-generation mobile content services. The validation process we are conducting will allow us to pioneer new service scenarios that work on both the mobile phone and consumers’ PCs,” said Cayetano Lluch, general manager of Technology and Services at Telefónica. “Demand for mobile media content is growing exponentially, and Microsoft PlayReady will help us deliver a tailored digital entertainment experience for our customers.”