Samsung Electronics and Microsoft Announce Revolutionary HDTV Alliance on Next-Generation Xbox Video Game Console

NEW YORK -- April 28, 2005 -- Samsung Electronics, a global HDTV leader, and Microsoft Corp., a leading force in the software and video game industries, today announced an alliance to elevate gaming to the next level through high-definition technology. Microsoft has chosen Samsung as the exclusive HDTV worldwide marketing partner for the next-generation Xbox^® high-definition (HD) gaming platform. The announcement was made today during the Home Entertainment Expo at the New York Hilton.

The next-generation Xbox and Samsung HDTV combination is designed to deliver the most advanced and realistic high-definition experience to gamers worldwide. To promote the HD Era, the companies plan to place over 25,000 Samsung high-definition televisions in Microsoft^® Xbox retail kiosk locations across the globe.

"Gaming has become a primary force for innovation in the entertainment and technology industries. Samsung has selected Microsoft Xbox as the best next-generation game console and a key driver in the global HDTV revolution," said Peter Weedfald, Senior Vice President Consumer Electronics & North America Corporate Marketing, Samsung Electronics, Inc. "Samsung is proud to expand the Microsoft relationship and stand with them at the forefront of the HD gaming century."

"Samsung is a natural partner to showcase the richness of the next-generation Xbox," said Peter Moore, Corporate Vice President of Worldwide Marketing and Publishing for Xbox at Microsoft. "Samsung HDTVs will provide Xbox enthusiasts with the truest high-definition gaming experience available."

The alliance is the culmination of a global process begun by Microsoft in October 2004 to find the most advanced and formidable visual display company to join with the new-generation Xbox video game console. A wide variety of visual display screen sizes and technology platforms from Samsung Electronics (LCD, Plasma, Micro Display -- DLP and Slim Fit HDTV CRT's) combined with the incredible new Xbox console will give gamers unprecedented realism and intensity in their gameplay. The new 23" Samsung LCD TV (LNR238W) to be paired at retail with the new Xbox console offers a super-fast 12 millisecond pixel switching speed, which will enable intense action while overcoming any motion artifacts. In addition, the Fixed Pixel Device eliminates scan lines, further ensuring gameplay is smooth and flicker-free. Picture quality combines with advanced audio technology to create the perfect gaming experience. Samsung's HDTV built-in speakers emulate the most realistic surround sound using SRS Tru-surround XT so the action feels even closer. Game enthusiasts will no doubt appreciate the sharper details, deeper contrast and rich sound that are standard on a Samsung HDTV.

The global marketing and promotional alliance between Microsoft and Samsung Electronics will drive the HDTV gaming platform as the greatest emotional experience available for gamers around the world. The alliance will include cinema, POS, television, print, on-line and various other media efforts.

Samsung Electronics and Microsoft enjoy a long-standing relationship as strategic and tactical business partners. Microsoft Xbox currently incorporates Samsung technology, and Samsung will continue to be a tech driver for the next-generation Xbox video game console. Microsoft's first high-definition game will incorporate Samsung-branded products as well as instances of Samsung's logo as part of the overall HD gaming experience. This will mark the first time Microsoft incorporates a consumer electronics technology partner with the Xbox console and games.

The companies are involved in other collaborative technology efforts as well. Samsung Smartphones run on the Windows Mobile ^TM platform; Windows Media^® Audio and Windows Media Digital Rights Management 10 (Windows Media DRM 10) are integrated with Samsung digital audio players; Samsung's new Portable Media Centers feature Windows Media Audio and Video and DRM 10; and the Microsoft Windows^® platform is used across Samsung's global family of notebooks and personal computers.

As a part of their continued relationship, Microsoft and Samsung Electronics are uniting in a nationwide (USA) cause-marketing program entitled "Samsung's Hope For Education." Now in its second year, the program will deliver more than $2 million in much needed technology and software products, including Encarta^® Reference Library 2005, to elementary, middle and high schools across America through an on-line essay contest. For more information on how to enter, please visit: www.HopeForEducation.com.

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 ^TM 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 North America, Asia, Europe and Australia.

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.

About Samsung Electronics America, Inc.

Headquartered in Ridgefield Park, NJ, Samsung Electronics America, Inc. (SEA), a wholly owned subsidiary of Samsung Electronics Co., markets a broad range of award-winning, advanced digital consumer electronics, information systems and home appliance products. The SEA organization oversees the North American operations of Samsung including Samsung Telecommunications America, Samsung Electronics Canada and Samsung Electronics Mexico. Please visit www.samsung.com for more information.

About Samsung Electronics

Samsung Electronics Co. Ltd. is a global leader in semiconductor, telecommunication, digital media and digital convergence technologies, with 2004 parent company sales of US$55.2 billion and net income of US$10.3 billion. Employing approximately 123,000 people in 93 offices in 48 countries, the company consists of five main business units: Digital Appliance Business, Digital Media Business, LCD Business, Semiconductor Business and Telecommunication Network Business. Recognized as one of the fastest growing global brands, Samsung Electronics is a leading producer of digital TVs, memory chips, mobile phones, and TFT-LCDs.

Microsoft, Xbox, Windows Mobile, Windows Media, Windows, Encarta and Xbox Live 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.

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