LAS VEGAS, January 7 /PRNewswire/ --

- BT Vision IPTV customers will soon be able to receive best in gaming,
TV and movies, all through Xbox 360.

Microsoft Corp and telecommunications leader BT announced they are
bringing together the next-generation TV service BT Vision with Microsoft's
Xbox 360 games and entertainment system. All BT broadband customers will have
the unique opportunity to receive the best in high-definition gaming,
television and movies through an Xbox 360 console, in a powerful, all-in-one
entertainment experience. BT Vision, which is powered by the Microsoft
Mediaroom Internet Protocol TV (IPTV) platform, plans to make this
first-of-its-kind device and service offering available to customers in the
middle of 2008. The announcement was made during the keynote address by
Microsoft Chairman Bill Gates and Microsoft President Robbie Bach of the
Entertainment & Devices Division at 2008 International CES on 6 Jan.

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The groundbreaking partnership will enable any BT Broadband customer to
use an Xbox 360 console to access the BT Vision service and its extensive
library of on-demand content, giving instant access to hundreds of movies and
thousands of hours of sporting events, television programming, music videos
and other digital content, such as BT Vision Sport's 242 "near-live" FA
Premier League football matches.

BT Vision customers with an Xbox 360 console will gain the option of
accessing BT Vision from either the Xbox 360 console or a set-top-box. The
service will be available to existing and future Xbox 360 console owners.

BT Vision on Xbox will combine the richness of the Microsoft
Mediaroom-enabled TV service with the benefits of next-generation gaming, as
well as unique new capabilities that the integrated solution brings. Xbox
LIVE, the largest online social network in the living room, will be
seamlessly integrated into the experience, providing consumers with a wide
range of community-based features, such as voice chat, sending and receiving
text and voice messages, and accessing Xbox LIVE Marketplace, all while
watching TV. For example, while a TV viewer is enjoying his favorite football
game, he can receive a message from a friend inviting him to join a voice
chat, or they could play a game of their own with EA SPORTS(TM) "FIFA
Soccer".

"We are pleased to partner with Microsoft to deliver a truly compelling
connected entertainment experience to our customers," said Dan Marks, CEO of
BT Vision. "For the first time consumers in the UK will be able to experience
the advantages of an advanced TV service together with the benefits of
next-generation gaming. Our aim is to provide BT Vision on multiple
platforms -- giving customers greater convenience, control and flexibility
over what they watch, when they watch and how they watch TV. It also means
that we are able to potentially expand our BT Vision customer base by tapping
into the popularity of Xbox 360."

"This is an exciting moment in home entertainment," said Enrique
Rodriguez, corporate vice president of the Connected Television Division at
Microsoft. "Last year at CES, we announced Xbox 360 on Microsoft Mediaroom as
a powerful platform capable of enabling new entertainment experiences for
consumers, and we are pleased to team with BT to bring this service to
market. Together we are enabling BT Vision customers to be the first in the
world to enjoy this next-generation TV and gaming entertainment experience."

About BT

BT is one of the world's leading providers of communications solutions
and services operating in 170 countries. Its principal activities include
networked IT services; local, national and international telecommunications
services; higher-value broadband and internet products and services and
converged fixed/mobile products and services. BT consists principally of four
lines of business: BT Global Services, Openreach, BT Retail and BT Wholesale.
In the year ended 31 March 2007, BT Group plc's revenue was pounds Sterling
20,223 million with profit before taxation of pounds 2,484 million.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT
Group and encompasses virtually all businesses and assets of the BT Group. BT
Group plc is listed on stock exchanges in London and New York.

For more information, visit http://www.bt.com.

About BT Vision

BT Vision is available to anyone with a BT Broadband connection with
suitable minimum line speed and a BT Home Hub. It offers a free HD-ready
set-top box, known as the V-Box, which includes all the 60 or so Freeview
TV and radio channels, an inclusive digital video recorder (DVR) of up to 
80 hours which allows viewers to pause and rewind live TV, and offers instant
viewing of thousands of hours of great entertainment, including blockbuster
and classic movies, cartoons, music and TV programmes. For more details
please go to http://www.bt.com/btvision .

The V-box is free for new broadband customers or existing customers
re-contracting for 12 months (18 months with Option 1) -- otherwise 
pounds 199. A connection fee of pounds 30 and engineer installation of pounds
60 applies, or Vision can be self-installed for just the connection fee of
pounds 30.

Services including live Setanta Sports action require a decoder card.

About Xbox 360

Xbox 360 is a superior video game and entertainment system delivering the
best games, unique entertainment features and a unified online gaming network
that revolve around gamers. Xbox 360 will have a portfolio of more than 
300 games and will be available in nearly 40 countries by the end of 2007. 
More information can be found online at http://www.xbox.com/xbox360.

About Microsoft Mediaroom

The award-winning Microsoft Mediaroom Internet Protocol Television (IPTV)
and multimedia software platform is driving the future of television by
enabling broadband service providers to deliver new connected TV and
entertainment experiences to consumers worldwide. Microsoft Mediaroom
provides new ways for consumers to experience TV as part of their connected,
digital lifestyle, while also creating new business opportunities for
broadband service providers, hardware manufacturers, content creators,
advertisers and application developers. Over 20 of the world's leading
service providers across four continents have selected the Microsoft
Mediaroom platform to drive their digital TV services. More information on
Microsoft Mediaroom and the opportunity to deliver the best in TV plus all
your media in one place is available at http://www.microsoft.com/TV and
http://www.microsoftmediaroom.com.

About Microsoft

Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in
software, services and solutions that help people and businesses realise
their full potential.

About Microsoft EMEA (Europe, Middle East and Africa)

Microsoft has operated in EMEA since 1982. In the region Microsoft
employs more than 13,000 people in 60 subsidiaries, delivering products and
services in 138 countries and territories.

This material is for informational purposes only. Microsoft Corp
disclaims all warranties and conditions with regard to use of the material
for other purposes. Microsoft Corp shall not, at any time, be liable for any
special, direct, indirect or consequential damages, whether in an action of
contract, negligence or other action arising out of or in connection with the
use or performance of the material. Nothing herein should be construed as
constituting any kind of warranty.

Web site: http://www.microsoft.com
              http://www.bt.com