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ROGERS AND MICROSOFT ANNOUNCE INTERACTIVE TELEVISION AGREEMENT

Toronto-based Rogers Communications Inc. and Microsoft Corporation of Redmond, Wash. have announced a series of agreements that will see the establishment of interactive television services in Canadian homes. Under the agreement, announced earlier this week, Rogers will license Microsoft's TV client software and TV Server software to support 1 million set-top boxes through which the new services will operate. Microsoft will make a $600 million (CND) investment in Rogers to aid in the roll-out of the new digital services to Roger's more than 2 million cable subscribers. Canadians will get digital services that combine access to the Internet with interactive video and audio programming, plus a Rogers-branded e-mail product by MSN Hotmail and other services based on Microsoft's Passport, MSN Search and MSNBC properties. Additional Canadian services will also be offered. The rollout of products and services is planned for next year.

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