Microsoft and Onkyo Announce Two Business Agreements

Companies to enter into broad patent cross-licensing collaboration to foster innovation, and to sign Windows Rally program agreement to enhance state-of-the-art product offerings.

REDMOND, Wash., and TOKYO — March 2008 — Microsoft Corp. and Onkyo Corp. have signed a broad patent cross-licensing agreement that will enable significant technological innovation in high-quality home entertainment and enhance the overall user experience. The agreement covers a broad range of consumer products and allows greater mutual access to each partner’s respective patent portfolio. Although the contents of the agreement (including the specific financial terms) are confidential, the parties indicated that Onkyo will provide compensation to Microsoft.

The intellectual property (IP) collaboration between Microsoft and Onkyo (which recently acquired Japan-based PC manufacturer Sotec Co. Ltd.) will contribute to the production of high-quality hardware and versatile, reliable software technology. Consequently, this will further promote seamless integration and accelerate innovation in consumer audiovisual (A/V) electronics, personal computing, and home theater custom installation markets.

“When industry leaders collaborate through intellectual property licensing, we foster greater innovation that will benefit the overall IT ecosystem,” said Horacio Gutierrez, vice president of intellectual property and licensing at Microsoft. “We are proud of the quality of our global patent portfolio, and we look forward to continuing to work with Onkyo and other industry leaders to develop new and exciting technologies through our collaborative licensing program.”

Windows Rally Program Agreement

In an additional effort to foster mutual cooperation and to enhance the user experience, Onkyo has entered into the Microsoft Windows Rally program. The Windows Rally program provides Onkyo with access to Microsoft technology, streamlined licensing, and technical guidance for effortless, security-enhanced and reliable connectivity between devices and PCs. Onkyo’s advanced consumer A/V electronics will bring the state-of-the-art connectivity in the home network to customers.

“We’re very excited about this new collaboration with Microsoft,” said Nobuaki Okuda, executive officer of business development at Onkyo. “We think a mix of technology, communication and entertainment enables greater technology solutions. These agreements strengthen our collaborative relationship, which is of immense importance and will further help us address our customers’ needs.”