The Walt Disney Studios to Offer Movie Rentals On Demand Through Xbox LIVE Starting Now

LOS ANGELES - July 10, 2007 - Whether you want to find adventure in a blockbuster game or lose yourself in a magical movie moment, you can get the ultimate in entertainment in your living room with Xbox 360® and Xbox LIVE. Today at the E3 Media & Business Summit, Microsoft Corp. and Disney-ABC Domestic Television announced an agreement to bring feature films from The Walt Disney Studios to U.S. members of Xbox LIVE, the online games and entertainment network on Xbox 360.

Beginning today, consumers of all ages will have access to a growing catalog of new and classic movies from The Walt Disney Studios including titles from Walt Disney Pictures, Touchstone Pictures, Hollywood Pictures and Miramax Films, on Xbox LIVE Marketplace, the leading high-definition-video download service. Xbox 360 owners will be able to rent popular Disney films on demand as they become available, such as "Bridge to Terabithia," Miramax Film's "The Queen" and Touchstone Pictures' "Déjà Vu."

"We're always looking for more ways to let people experience our films," said Dan Cohen, executive vice president of pay television and interactive media for Disney-ABC Domestic Television. "With the millions of Xbox 360 consoles in living rooms today with a direct, high-speed Internet connection, Xbox LIVE really has become a terrific device for the delivery of digital entertainment content."

As a result of this partnership between Microsoft and Disney-ABC Domestic Television, an array of current and library titles will be available this July, with more to come in both standard and high definition. Currently offering more than 2,350 hours of premium entertainment content from 15 partners, Xbox LIVE Marketplace is the only online service offering downloadable movies and TV shows in high definition. In a little more than seven months since video content was launched on Xbox LIVE Marketplace, there have been nearly 10 million downloads of entertainment content.

"Xbox 360 and Xbox LIVE Marketplace truly offer something for everyone of all ages, gender or personal taste," said Peter Moore, corporate vice president of the Interactive Entertainment Business in the Entertainment and Devices Division at Microsoft. "With this partnership, we are able to feature blockbuster new releases as they become available, as well as an incredible array of classic family films that made Disney the icon it is today."

Xbox LIVE Marketplace content is available to all Xbox 360 owners. High-definition new-release movie rentals are 480 Microsoft® Points each, and standard-definition new-release movie rentals are 320 Microsoft Points each. Classic feature films in high definition are 360 Microsoft Points each, and classic feature films in standard definition are 240 Microsoft Points. More information is available online at http://www.xbox.com/en-US/live/marketplace/moviestv/?WT.svl=nav.

About Xbox LIVE

Xbox LIVE is the first and most comprehensive unified online entertainment network seamlessly integrated throughout the entire console experience, making it easy for people to find the friends, games and entertainment they want from the moment they power on their Xbox 360 system. Xbox LIVE connects millions of members across 25 countries to enjoy hundreds of multiplayer games, downloadable games via Xbox LIVE Arcade, free and premium playable game demos, music videos, TV shows and movies in the United States as well as new game levels, characters and vehicles for all their favorite retail games. More information can be found online at http://www.xbox.com/en-us/live.

About Disney-ABC Domestic Television

Disney-ABC Domestic Television's pay television and interactive media division is a leading distributor of movies in the video-on-demand arena. DADT distributes movies domestically from The Walt Disney Studios, including titles from Walt Disney Pictures, Touchstone Pictures, Hollywood Pictures, and Miramax Films. It currently licenses movies through a wide range of distributors and platforms including cable MSOs, satellite companies, internet distributors, telcos, mobile operators, and via other emerging technologies.

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.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass on Microsoft's corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft's Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/presspass/contactpr.mspx.