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Microsoft Outlines Plans for Changing the Game to Kick Off Electronic Entertainment Exposition

   MICROSOFT LOGO
Microsoft company logo. (PRNewsFoto)[AG]
REDMOND, WA USA
Xbox Flexes Its Leadership Muscle in Games, Software and Alliances; Microsoft
             and Electronic Arts Team Up for Xbox Live Agreement

    LOS ANGELES, May 10 /PRNewswire-FirstCall/ -- To a packed house of video
game leaders two days before the opening of the Electronic Entertainment
Exposition (E3), Microsoft Corp. (Nasdaq: MSFT) boldly showcased its plans to
lead the industry in games, online services, software and alliances. Flanked
by legendary sports stars, including Muhammad Ali, St. Louis Rams running back
Marshall Faulk and Denver Nugget Carmelo Anthony, Microsoft Chief Xbox(R)
Officer Robbie Bach and Electronic Arts Inc. President of Worldwide Studios
Don Mattrick brought down the renowned Shrine Auditorium in Los Angeles by
announcing Electronic Arts' commitment to bringing its critically acclaimed
games to the Microsoft(R) Xbox Live(TM) online gaming service starting this
summer.
    (Logo:  http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO )
    "EA has always been a great publisher for Xbox," Bach said. "We're
strengthening our alliance by bringing EA's world-class games to Xbox Live,
the undisputed leader in online console gaming."
    Through this long-term agreement, many of EA's major franchises will be
coming to Xbox Live, with more than 15 titles expected in the coming months
including "Madden NFL(TM) 2005," NBA LIVE 2005," "FIFA Soccer 2005," and "Need
for Speed(TM) Underground 2," as well as "Burnout(TM) 3," "TimeSplitters
Future Perfect(TM)" and the popular online franchise, "Battlefield." The news
is welcomed by nearly 1 million Xbox Live members in 24 countries pining to
play EA franchises online.

    Blockbuster Xbox Games Coming Soon
    In addition to the EA announcement, Microsoft showcased breakthrough
titles, bringing new levels of personalization, compelling story lines, and
graphics superiority only achievable on Xbox. Capping the night, Microsoft
demonstrated the continuous innovation and leadership of Xbox Live as the
premier online service for console video games now and into the future.
    Microsoft revealed that the highly anticipated blockbuster "Halo(R) 2"
will be on store shelves Nov. 9, 2004. "Halo 2" is the sequel to one of the
greatest games ever made, "Halo: Combat Evolved," with more than 4 million
copies sold worldwide. Although much of the story line of the game remains one
of the industry's best-kept secrets, the battle comes to Earth as Master
Chief, a genetically enhanced super soldier, is the only thing standing
between the relentless alien Covenant and the destruction of all humankind.
"Halo 2" promises graphics that push the powerful Xbox hardware to its limits
and gameplay that showcases breakthrough Xbox Live play.
    Proving that its game pipeline is fully loaded, Microsoft also showcased
upcoming games that redefine their respective genres through compelling story
lines, personalization and jaw-dropping graphics achievable only on Xbox.
These games also reflect the boundless imagination of their creators:
    --  "DOOM 3" (Developed by id Software and distributed by Activision
        Inc.). A console exclusive for Xbox, "DOOM 3" draws players into the
        most terrifying and gripping 3-D gaming experience ever created. Built
        on id's revolutionary new 3-D graphics engine, "DOOM 3" delivers an
        epic clash against pure evil as gamers battle the forces of Hell alone
        or cooperatively on Xbox Live.
    --  "Dead or Alive(R) Ultimate" (Tecmo Inc.). Tecmo's esteemed development
        group, Team Ninja, has created the ultimate "Dead or Alive" fighting
        experience, "Dead or Alive Ultimate," by coupling the original version
        of "Dead or Alive" with a completely redesigned "Dead or Alive 2" on
        the Xbox video game system to create one of the first 3-D online
        fighting games. Both games will be Xbox Live multiplayer-compatible,
        enabling players to test their fighting skills against a vast
        community of gamers from around the world.
    --  "Fable(TM)" (Developed by Big Blue Box Studios and Lionhead Studios
        for Microsoft Game Studios). In this groundbreaking role-playing
        adventure game, gamers choose the path of righteousness or a life of
        evil, and watch themselves transform into a reflection of their
        actions and decisions.
    --  "Forza Motorsport(TM)" (Microsoft Game Studios). "Forza Motorsport" is
        the first fully customizable racing simulation for Xbox. This
        groundbreaking game allows gamers to drive hundreds of the hottest
        cars in the world from more than 60 manufacturers at breakneck speeds.
        For gamers eager to put their reputation on the line against the best
        on Xbox Live, "Forza Motorsport" takes the checkered flag.
    --  "Jade Empire(TM)" (Developed by BioWare Corp. for Microsoft Game
        Studios). From the developer of the acclaimed "Star Wars(R): Knights
        of the Old Republic(TM)" comes an action role-playing game with an
        innovative new fighting engine. More than 30 martial-arts fighting
        styles have been incorporated into the game, and only by mastering
        them and using the right ones at the right time will players rise to
        the top in the world of "Jade Empire."
    --  "Xbox Live Arcade(TM)." This fall, the casual games people love to
        play with their families will be playable on their television screens
        with "Xbox Live Arcade." Games will include puzzle games such as
        "Bejeweled"; card games such as poker, hearts and bridge; and classic
        action and arcade favorites such as Namco's "Dig Dug" and
        "Galaxian(C)." Microsoft is working with leading companies -- such as
        Atari Inc., PopCap Games Inc., GarageGames and Nolan Bushnell's
        uWink.com Inc. -- to bring a robust offering to "Xbox Live Arcade."

    Software Powers the Future of Games
    Finally, Microsoft tantalized attendees by taking social communication to
the next level with XNA(TM), software that will power the future of games. The
company announced that "Vanguard: Saga of Heroes," a Windows(R)-based
massively multiplayer online role-playing game (MMORPG) from Sigil Games
Online Inc., will employ voice and notification software tools from Xbox Live
to the Windows gaming world. "Vanguard: Saga of Heroes," whose development
team includes the original producer and co-creator of the wildly successful
"EverQuest(TM)," will be integrated with MSN(R) Messenger in mobile devices,
cell phones and more, allowing players to be notified if their friends are
online, their castle is under siege or a troll needs to be vanquished.

    About Xbox
    Xbox ( http://www.xbox.com/ ) is the video game system from Microsoft that
brings people together for the most exhilarating game and entertainment
experiences. Xbox delivers an expansive collection of breakthrough games,
powerful hardware and the unified Xbox Live online service. The tag line,
"It's good to play together," captures the spirit of Xbox as the social hub of
the new digital entertainment lifestyle. Xbox is now available in North
America, Asia, Europe and Australia.

    About Microsoft
    Founded in 1975, Microsoft is the worldwide leader in software, services
and solutions that help people and businesses realize their full potential.

    Some information herein relates to prerelease software, which may be
substantially modified before its first commercial release. Accordingly, the
information may not accurately describe or reflect the software when it is
first commercially released. This release is provided for informational
purposes only, and Microsoft makes no warranties, express or implied, with
respect to this release or the information contained in it.

    NOTE:  Microsoft, Xbox, Xbox Live, Halo, Forza Motorsport, Xbox Live
Arcade, Windows, XNA, Windows and MSN are either registered trademarks or
trademarks of Microsoft Corp. in the United States and/or other countries.
Need for Speed is a trademark or registered trademark of Electronic Arts Inc.
in the United States and/or other countries.
    NFL, NBA, FIFA, Burnout and TimeSplitters Future Perfect are trademarks of
their respective owners and used with permission.
    The names of actual companies and products mentioned herein may be the
trademarks of their respective owners.


SOURCE Microsoft Corp.




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