Microsoft Intends to Acquire Musiwave

Microsoft Corp. today announced it has entered into an exclusivity
agreement around its intention to acquire Musiwave SA, an Openwave
company and a leading provider of mobile music entertainment services
to operators and media companies. The acquisition would bring
Musiwave's relationships with music labels, device makers and mobile
operators that deliver digital entertainment to consumers, together
with Microsoft's Connected Entertainment technologies and services,
including Windows Mobile, Zune, MSN and Windows Live. Should the
transaction proceed, Musiwave would continue to operate out of its
current headquarters in Paris.

"Microsoft and Musiwave share the same philosophy in working with
hardware and mobile operator partners to deliver great experiences for
mobile device users," said Pieter Knook, senior vice president of the
Mobile Communications Business at Microsoft. "Bringing Musiwave on
board would provide an opportunity for Microsoft to explore new areas
in the mobile space previously untapped, and to showcase the power of
software plus services. This contemplated acquisition reflects
Microsoft's recognition of the software and technology expertise in
Europe."

"Musiwave would bring key assets to us as we continue to bring our
vision of Connected Entertainment to life," said J Allard, corporate
vice president in charge of music at Microsoft. "Its software expertise
and extensive relationships with operators and music companies would
help us take our products and services to the next level, giving people
access to whatever entertainment content they want, whenever and
however they want it."

Today, Microsoft mobile technology runs on a variety of mobile
platforms, featured on more than 140 mobile phones made by 50
handset-makers, sold by more than 160 mobile operators around the world.

Demand for Mobile Music Services Drives Innovation

Today, the mobile music device market is growing at a rapid rate.
According to technology research firm Ovum, 1,106 million mobile music
phones will be shipped worldwide in 2010. Mobile operators are
continually looking for ways to deliver digital entertainment to their
customers, and have looked to companies such as Musiwave to deliver
music services that help provide the necessary infrastructure. As a
provider of white-label music solutions to mobile operators in Europe,
Musiwave has helped to bring a rich selection of millions of ringtones,
full-track downloads and music videos to consumers.

Musiwave also has a rich history of working with a wide variety of
device-makers, across a diverse group of software platforms that
produce music and data-capable mobile devices. Today, software
developed by Musiwave can be found on most handsets available in Europe.

About Musiwave

Musiwave, an Openwave company (Openwave Systems Inc.) , is a
leading provider of mobile music entertainment solutions, including
software, marketing and content management, to operators and media
companies worldwide. For more information, please visit
http://www.musiwave.net.

About Microsoft

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