| HighM.A.T. - High-Performance Media Access Technology!Microsoft and Panasonic Unveil New
      HighM.A.T. Technology to Enable Smoother Digital Media Exchange Between
      PCs and Consumer Electronics Devices New Specification, Also Supported by
      Fujifilm, Makes It Faster and Easier to Navigate and Play Back Personal
      Photo, Music and Video Collections on CDs for Consumer Devices Including
      CD and DVD Players TOKYO and REDMOND, Wash. — Oct. 18,
      2002 — Matsushita Electric Industrial Co. Ltd. (Panasonic) and Microsoft
      Corp. today unveiled a new technology they have co-developed that enables
      a dramatically improved method of storing, arranging and playing back
      personal digital photo, music and video collections on recordable discs
      such as CD-RW media. Called HighM.A.T.™, which stands for
      High-Performance Media Access Technology, this new technology is designed
      to significantly improve interoperability for digital media content
      between PCs and popular electronic devices such as CD players, car stereos
      and living room DVD devices. CDs created using the HighM.A.T. technology
      will be fully compatible with existing devices that play back recordable
      disc media. Panasonic, Microsoft and Fuji Photo Film Co. Ltd. (Fujifilm)
      will adopt this new technology for use in their future products. The
      HighM.A.T. Specification will also be available for easy licensing by
      other consumer electronics companies and software developers at www.HighMAT.com.
 "It’s clear to us at Panasonic that PCs and consumer electronics
      products will continue to work more and more closely in the future.
      HighM.A.T. technology will set a new standard for exchanging digital media
      between such devices and will make it easier to play back personal music,
      photo and video collections in consumer AV products," said Fumio
      Ohtsubo, managing director of Matsushita Electric. "We are very
      pleased that Panasonic can contribute to realizing the dream of seamless
      digital convergence."
 
 "As digital entertainment continues to evolve in the home, we see
      many opportunities for PCs and electronics devices to enhance one another
      through faster and easier interoperation," said Will Poole, corporate
      vice president of the Windows New Media Platforms Division at Microsoft.
      "HighM.A.T. is our most recent step in realizing this vision and
      collaborating on consumer needs at a much deeper level, in close
      partnership with electronics industry leaders such as Panasonic."
 
 Inspired by growth in consumer use of digital still and video cameras and
      compressed digital music, HighM.A.T. was developed to create an easier and
      faster way to move digital media from the PC to consumer electronics
      devices. Today when consumers want to create their own digital media
      collections (photos, audio and/or video) on CDs, there is no consistent
      way for CD and DVD players to read this data. Each interface for finding
      media is different, and the viewable information, such as playlists, music
      metadata and folders with photos or videos, varies depending on what each
      device supports. The contents of these discs are displayed very
      differently on televisions with a DVD player than the way they are
      experienced on car stereos.
 
 This lack of consistency confuses users when they try to find the music,
      photos or videos they want. In addition, with large collections of digital
      music and photos, it can take several minutes for the DVD or CD player to
      "read" and find the music, photos or video that are available
      after the content has been burned on the compact disc or other physical
      format.
 
 HighM.A.T. solves these issues by creating an optimized way for PCs to
      identify digital files on recordable discs and standard ways for consumer
      devices to read these disks. This new technology will speed up startup
      times for data CDs and other physical formats and make navigation across a
      broad range of consumer electronics devices, including car stereos, DVD
      players and CD players, consistent and easy. CDs created using the
      HighM.A.T. technology will still be compatible with existing devices that
      play back recordable disc media, and HighM.A.T. is compliant with the
      standard ISO9660 Joliet file system.
 
 Microsoft will begin adding HighM.A.T. disc creation support in its
      upcoming final release of Windows Media® Player 9 Series and in a future
      version of Windows® Movie Maker, the digital video editing and publishing
      feature of Windows XP. Panasonic will support HighM.A.T. in future
      versions of its CD and DVD players in 2003. Microsoft and Panasonic are
      also announcing that Fujifilm is supporting HighM.A.T. in future versions
      of its products and that it is the first of many companies supporting the
      HighM.A.T. initiative.
 
 "Fujifilm recognizes the importance of HighM.A.T. and is pleased to
      join with Microsoft and Panasonic to create a better consumer experience
      using digital media both on the PC and with consumer electronics
      devices," said Yukihiro Shibakawa, general manager of the DI Software
      Development Division of Fuji Photo Film Co. Ltd.
 
 HighM.A.T. Technology will be made available for easy licensing by both
      software developers and other consumer electronics device manufacturers.
      Companies interested in learning more about licensing HighM.A.T. may visit
      www.HighMAT.com.
 
 Today’s announcement by Microsoft and Panasonic builds and extends the
      cooperation in digital media the companies first announced at the Consumer
      Electronics Show (CES) 2002 with Panasonic’s broad adoption of Windows
      Media Audio (WMA) in its line of DVD players.
 
 About Matsushita Electric Industrial Co. Ltd.
 
 Matsushita Electric Industrial Co. Ltd., best known for its Panasonic,
      National, Technics and Quasar brand names, is a worldwide leader in the
      development and manufacture of electronics products for a wide range of
      consumer, business and industrial needs. Based in Osaka, Japan, the
      company recorded consolidated sales of U.S. $51.70 billion for the fiscal
      year ended March 31, 2002. In addition to the Tokyo and other Japanese
      stock exchanges (6752), Matsushita’s shares are also listed on the
      Amsterdam, Dusseldorf, Frankfurt, New York, Pacific (NYSE/PCX: MC) and
      Paris stock exchanges. More information is available on the Matsushita Web
      site at http://www.panasonic.co.jp/global/top.html.
 
 About Microsoft
 
 Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide
      leader in software, services and Internet technologies for personal and
      business computing. The company offers a wide range of products and
      services designed to empower people through great software - anytime,
      anyplace and on any device.
 
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 Microsoft, Windows Media and Windows
      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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