Xbox(R) Targets We7 For Christmas Campaign

London, 30 November 2007 -Microsoft® has teamed up with new ad-funded free music download service, We7, to increase awareness of Xbox 360 and promote key titles in the run up to Christmas. The deal will see Xbox utilise We7's unique ad grafting technology to get directly into the ears of consumers downloading tracks and albums from www.we7.com, targeting their ads by the genre of music as well as by location, age and gender.

The We7 campaign is part of a wider Christmas strategy from Xbox which includes TV advertising, and will run from 26th November until Christmas day. As well as raising brand awareness for Xbox 360, the campaign on We7 will use the power of music to demonstrate Xbox 360's strong portfolio of games to appeal to a wide range of audiences, from the latest blockbuster games for the key 16-25 male audience to 'Fun for Everyone' - a range of family games suitable for everyone 3 years+.

Stephen McGill, Head of Gaming and Entertainment, Microsoft UK says of the deal: "There's a natural affinity between music and gaming which We7 allows us to explore in a unique and effective way using a mix of traditional display ads alongside the new audio grafting techniques. We'll primarily use this campaign to target our key demographic - 16-25 year old males - but as We7 has a varied user base we plan to broaden our focus to a wider family audience too."

The We7 innovation allows advertisers to digitally reach an audience using the traditional formats of MPU's and Skyscrapers but the audio segment uniquely goes with the consumers onto their iPods or other MP3 players reinforcing the message in an intimate and highly acceptable manner.

The range of audio ads has been created by Music4 and the 20 second ads use the same memorable backing track that appears on the TV campaign.

Steve Purdham, CEO, We7 adds: "We7 offers a platform to entertain and engage, benefiting both the consumer and the advertiser. We are thrilled to be working with such a leading consumer brand as Xbox® as it feels like the perfect fit for our site.

"Since signing our first deal in October, we've seen significant interest from the Advertising community to our new innovative model and we expect to make more announcements of We7 adoption in the run up to Christmas as well as in 2008."

Ends

For more information on We7 go to:

www.we7.com

For press enquiries please contact:

Sinead Purcell, sinead.purcell@redconsultancy.com, 0207 025 6505

Nicola Murray Nicola.murray@redconsultancy.com 020 7025 6516

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 Xbox 360

Xbox 360 is the most powerful video game and entertainment system, delivering the best games, the next generation of the premier Xbox Live online gaming network and unique digital entertainment experiences that revolve around gamers. Xbox 360 is expected to have a catalogue of 160 high-definition games by the end of 2006.

About Xbox Live®

Xbox Live is the first and only 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 nearly 25 countries to enjoy hundreds of multiplayer games, downloadable games via Xbox Live Arcade, free and premium playable game demos, music videos, and movie trailers, as well as new game levels, characters and vehicles for all their favourite retail games. More information can be found online at http://www.xbox.com/en-us/live

Microsoft, Xbox Live, Xbox 360 and Xbox 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.