LONDON -- Microsoft will showcase IPTV on Xbox 360 for the first time in Europe at The Connected Home show to be held in Olympia, London on 5-7 March, 2007 (www.the-connected-home.co.uk). Ed Graczyk, Worldwide Director of Marketing and Communications for Microsoft TV, will demonstrate IPTV on Xbox 360 during his keynote at the conference, entitled “Future of Connected Entertainment”.

The demonstration will showcase what happens when next-generation television is combined with next-generation gaming in a unique, new service delivered by your broadband provider. Graczyk commented, “Separately the Xbox 360 and Microsoft TV IPTV Edition deliver unique and exciting entertainment experiences, but IPTV on Xbox 360 delivers a real value proposition for consumers, service providers and content and game developers alike. By integrating these industry-leading solutions, we continue to drive innovation and enable new connected entertainment experiences for consumers.”

IPTV on Xbox 360 is expected to be available through select service providers as early as the holiday season in 2007. Some of the world’s largest telecommunications service providers have chosen Microsoft IPTV Edition as their IPTV software solution, with scaled commercial deployments currently under way with AT&T, BT Group PLC, Deutsche Telekom, T-Online in France and Swisscom.

Ian Johnson, Managing Director of Junction Group Ltd, organiser of the IPTV World Forum (www.iptv-forum.com), commented, “This will be a unique opportunity to witness first hand the possibilities which IPTV offers to service providers and to the online gaming market and we are delighted that Microsoft has chosen the IPTV World Forum event to showcase this demonstration.”

The Connected Home Show (www.the-connected-home.co.uk) will be co-hosted at the third annual IPTV World Forum and will be held in Olympia, London on 5-7th March 2007. www.iptv-forum.com

Microsoft Corp. (Nasdaq: MSFT)