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HALO 2 SURPASSES FIVE MILLION UNITS WORLDWIDE

Halo Franchise Exceeds Eleven Million Unit Mark

London, 3rd December 2004 - Xbox® gamers around the world can't get enough of Halo 2 - the global phenomenon has sold more than five million copies worldwide since its launch in early November. In total the Halo franchise has exceeded the 11 million unit mark, with cumulative sales from Halo: Combat Evolved, Halo 2 and Halo for Windows.

Gamers are also loving Halo 2's innovative new Xbox® LiveTM features - the global Xbox Live community has logged a record-setting 28 million hours playing Halo 2, which is more than any other Xbox Live game in the history of the global service.

The instant action and immersive gameplay in Halo 2 propelled gamers to play online for an average of 91 minutes per session, approximately the same length as a major motion picture. Out of a universe of more than one million Xbox Live members, Halo 2 on Xbox Live has already attracted more than 900,000 unique users.

In addition to the Halo 2 phenomenon, Xbox is satisfying the entertainment appetites of adults and children, all ages and personalities. "Fable," the ground-breaking Xbox role-playing adventure game from Lionhead Studios and Microsoft Game Studios, has reached new heights, racking sales of more than one million units worldwide in only two months since its availability at retail.

"This year's Christmas line-up provides something for everyone in the family and is a great value for Xbox gamers," said Neil Thompson, Senior Regional Director, Northern & Eastern Europe , Xbox and Home and Entertainment Division, "With Xbox now available for only £99.99 in the UK, there's never been a better time to be an Xbox gamer."

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 the UK for an estimated street price of £99.99.

About Xbox Live

A new frontier in imagination and extraordinary interaction, no one else offers the richness of online gameplay found on Xbox Live. The world's only unified global online console games service, Xbox Live is continuously innovating to provide members with unparalleled experiences. This unique service unites gamers together in a dynamic community where they can experience the best online games, exclusive programming and continuous downloadable content. Xbox Live launched in the United States in November 2002 and is available in 24 countries. Please visit http://www.xbox.com/live for more information.

About Microsoft Game Studios

Microsoft Game Studios is a leading worldwide publisher and developer of games for the Xbox® video game system and Windows and online platforms. Comprising a network of top developers, Microsoft Game Studios is committed to creating innovative and diverse games for Windows (http://www.microsoft.com/games/), including such franchises as "Age of Empires®," "Flight Simulator" and "Zoo Tycoon®"; Xbox (http://www.xbox.com/), including such franchises as "Halo®," "Project Gotham Racing®" and Zone.com (http://www.zone.com/), the official games channel for the MSN® network and home to such hits as "Bejeweled" and "OutSmartTM."

About Bungie

Bungie Studios was founded in 1991 with two goals: to develop games that combine brilliant technology, beautiful art, intelligent stories and deep gameplay, and then sell enough of those games to achieve its real goal of total world domination. Over the past 10 years it has produced games such as the "Marathon Trilogy" and the first two "Myth" games, hailed as classics by critics and gamers around the world. Released in 2001, "Halo: Combat Evolved" has achieved phenomenal success on the Microsoft Xbox video game system and is also available for the PC. More information on Bungie can be found at http://www.bungie.net.

About Microsoft

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

For more information, please contact:

Marie-Claire Suter

UK PR Manager - Xbox & PC Games

Tel: +44 (0) 118 909 4599

Email: i-maries@microsoft.com

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