New Version of MSN Provides Breakthrough Offerings for Advertisers

Changes Include Industry-Leading TV-Like Streaming Video Ads, New High-Impact
Home Page and Standardized Ad Sizes

REDMOND, Wash., Jan. 8 /PRNewswire-FirstCall/ -- Consumers hooked on the
high-speed Internet aren't the only ones who received a belated holiday gift
with today's launch of the new version of MSN(R) Internet services. The new
portfolio of free and premium Web services from MSN extends the power of
broadband to advertisers and provides additional opportunities for marketers
to more effectively reach the massive MSN online audience.

Fueled by feedback from consumers, marketers, and ad agency executives,
MSN now offers advertisers new high-impact advertising options, including
TV-like ads, via a new, free, streaming-video service, MSN Video; new MSN home
page ad products such as expandable ad space that provide advertisers with
improved flexibility and greater potential for creativity; and Universal Ad
Package (UAP) standardized ads to make it more efficient for advertisers to
plan, create and purchase ad space.

"MSN has taken online advertising to the next level by offering a rich
array of innovative options for advertisers," said Joanne Bradford, vice
president and chief media revenue officer of MSN. "The 50 percent revenue
growth we've experienced in our advertising business over the past year
demonstrates how important online advertising has become and specifically how
MSN has solidified itself as a top media property across all media."

MSN Video Offers TV-Like Advertising

Today's official launch of MSN Video on MSN arms advertisers with a new
way to grab the attention of consumers online via the popular medium of
streaming video. Already a wide variety of leading companies have embraced
this advertising medium by purchasing 15-second video spots on a scheduled
rotation -- a model similar to that of television advertising.

The spots are integrated with MSN Video's high-resolution news, sports,
entertainment and other programming. Contextual ads are displayed on the MSN
Video on-screen player to help tie the emotional impact of television with the
instant interactivity of online. For example, following each video
advertisement, the advertiser's contextual ad remains on the MSN Video
on-screen player until the next ad runs, enabling the advertiser's message to
stay top-of-mind without intruding on or detracting from the consumer's
experience.

"We are excited to have the Internet offer a nontraditional advertising
vehicle with the emotional impact of television, and MSN has succeeded in
doing this with MSN Video," said Kiki Rees, vice president of Media/Internet
for Revlon. "MSN Video strategically utilizes our existing television creative
and provides Revlon with a medium that is relevant not only to our core
consumer but to a broader audience, giving us a wider reach than ever before."
Deutsch Inc., Revlon's agency of record, led the negotiations with MSN.

MSN Home Page Redesign Provides Cleaner, Richer Environment

The new MSN home page has been redesigned and optimized for broadband to
provide consumers and advertisers alike with a dynamic and more streamlined,
cleaner environment. Along with its updated look and feel, MSN features a
variety of ad products, including a wider range of ad products to suit
different budgets and campaign goals; a richer experience by providing more
creative space, larger file weights, over-the-page formats and support for
multiple flash style files; and easy application of standardized UAP sizes.

More Flexibility, Support for Standardized Ad Units

Last fall, in collaboration with the Interactive Advertising Bureau (IAB),
MSN recognized the need to institute standard ad sizes to increase
efficiencies across the online advertising industry; the result was the
creation of the UAP. The standardized ad formats allow advertisers to leverage
inventory across multiple Web sites, simplifying all aspects of online
advertising and making it more cost-efficient to create, purchase and plan ad
inventory.

MSN has undergone a redesign to launch all the UAP sizes across its entire
network. A standard UAP ad is available on the top half of the page, or "above
the fold," on nearly every page. The predominant ad unit is now two and one-
half times bigger than before to give advertisers a larger share of voice. By
using one or more of the four standard UAP ad sizes, which support rich media
solutions, advertisers can reach up to 50 percent* of the MSN audience.

About MSN

MSN attracts more than 350 million unique users worldwide per month. With
localized versions available globally in 38 markets and 18 languages, MSN is a
world leader in delivering Web services to consumers and ad sales to
businesses worldwide. MSN 8 is the first Internet software product to have
earned the trusted Good Housekeeping Seal. The most useful and innovative
online service today, MSN brings consumers everything they need from the Web
to make the most of their time online. MSN is located on the Web at
http://www.msn.com/. MSN worldwide sites are located at
http://www.msn.com/worldwide.ashx .

About Microsoft

Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in
software, services and Internet technologies for personal and business
computing. The company offers a wide range of products and services designed
to empower people through great software -- any time, any place and on any
device.

*Microsoft internal data

NOTE: Microsoft and MSN are either registered trademarks or trademarks of
Microsoft Corp. in the United States and/or other countries.

The names of actual companies and products mentioned herein may be the
trademarks of their respective owners.