Santa Clara, Calif., Dec. 7, 1999 -- SANTA CLARA, Calif., December 7 PortalPlayer, Inc., a California Corporation announced a strategic relationship with Microsoft Corp. to enable PC application, firmware, and chip support for a broad range of consumer electronics products that will use the Microsoft Windows Media Format and Digital Rights Management (DRM) solution.

"PortalPlayer’ s innovative Windows Media end-to-end solution is another strong indicator of the Windows Media building momentum both among consumers and the industry," said Dave Fester, director of marketing, Streaming Media Division, Microsoft Corp. "This kind of innovative support will make devices much easier to access for consumers, allowing them to enjoy the great music of top artists and labels, who can now securely distribute their music across the Internet."

PortalPlayer has agreed to license the Windows Media and DRM technologies for its forthcoming ARM7 based systems. PortalPlayer will support the Windows Media Device Manager to enable Windows 9.x and Windows 2000 OS environments to easily manage and transfer secure digital media. The company is initially targeting portable audio players, portable MiniDisc/CD players, and mini-component audio systems for its solutions. In the future, other form factors including home networked audio components and cellular phones will include the technology.

PortalPlayer also announced their intention to support future generations of Windows Media Technologies. "We believe that as the proliferation of the Windows Media decoders and wide use of the Windows Media Player continues to expand, the adoption by the major and independent labels will continue to grow at a rapid pace," said Michael Maia, Vice President of Marketing at PortalPlayer. "Windows Media support will be a key must-have in addition to MP3 decoders in the summer of 2000 due to increased availability of content and CD-Quality music at half the size of MP3 files.

PortalPlayer will support Microsoft’s Digital Rights Management solution that enables secure music distribution. Supported by major record labels including Sony, Capital and BMG, the end-to-end solution will support the current Secure Digital Music Initiative (SDMI) specification as well as offer flashable upgrades as the standard evolves.

About PortalPlayer

PortalPlayer, Inc., develops and markets to consumer electronics manufacturers complete end-to-end solutions for delivery and management of open and secure digital media with a focus today on MP3 players/recorders. Products include destination website applications, PC media management software, firmware, and semiconductors. The Company’s products support Internet-based delivery of multimedia content including music and other audio content, print and ultimately video materials to a variety of playback devices including portable MP3 players, home and automotive entertainment systems, and cellular phones.

Founded in June 1999, PortalPlayer is headquartered in Santa Clara, California with branch offices in Seattle, Washington and Hyderabad, India. The company has rapidly grown to more than 50 employees worldwide. PortalPlayer received its first round of funding from Chase Capital, Techfund, and FlatIron Partners.

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PortalPlayer is a registered trademark of PortalPlayer, Inc. ARM is a registered trademark of ARM Ltd. Other product and company names herein may be trademarks of their respective owners.