TORONTO, ON. — September 8, 2008 — Microsoft Corp. today announced that Zune®, the company’s all-in-one digital entertainment brand, is introducing new software-powered features for the device, PC and the web that make it easier than ever for people to discover and listen to the music they love wherever they are. Starting September 16, 2008, free, powerful software and firmware updates will help bring new experiences to every device in the Zune family. Zune is also expanding its device line-up with new 16GB and 120GB capacities plus a new blue Zune 8GB.

Starting September 16, 2008, the following Zune players will be available in stores across Canada:

• NEW! Zune 120GB (available in a sleek all-black colour scheme)
• NEW! Zune 16GB (available in a sleek all-black colour scheme)
• Zune 80 GB: (available in black & red)
• Zune 8GB (NEW! now available in blue along with black, pink & red)
• Zune 4 GB: (available in black, pink & red)

“Feedback since the recent launch of Zune in Canada has been tremendous; now we’re excited to add to our launch by offering Canadians even more ways to enjoy their music and entertainment wherever they go,” said Craig Tullett, Group Manager, Zune Canada. “The availability of these new features and devices solidifies Zune as a leader in delivering digital entertainment.”

More Ways to Discover Music

The Zune 3.0 software update uses recommendations from the Zune Social online music community combined with an owner’s play data to help create a dynamic, digital music experience that makes discovering music easy and seamless. Available starting September 16, 2008, the updated Zune PC software is a free download from www.zune.ca that adds rich discovery and media management capabilities to existing music collections.

Extending the Digital Media Experience

In addition to taking the digital music experience a step forward, Zune is also adding the following new content and features:

• Tag from FM radio. Instantly tag songs you hear on FM radio stations directly from your Zune device.
• Games on the go. Two free games – Hexic and Texas Hold ‘Em – will keep users entertained while on the go.
• Audiobooks. To start listening to a favourite book on a Zune, users can visit audible.com or overdrive.com to download and sync available audiobooks.

More information on Zune and related images are available at www.zunenews.ca

About Zune

Zune is Microsoft’s music and entertainment brand that provides an integrated digital entertainment experience. The Zune platform includes a line of portable digital media players, elegant software and the Zune Social online music community, created to help people discover music. Zune is part of Microsoft’s Entertainment and Devices Division and supports the company’s software-based services vision to help drive innovation in the digital entertainment space. More information can be found online at www.zunenews.ca

About Microsoft Canada

Established in 1985, Microsoft Canada Co. is the Canadian subsidiary of Microsoft Corporation (Nasdaq “MSFT”) the worldwide leader in software, services and solutions that help people and businesses realize their full potential. Visit Microsoft Canada’s web site at http://www.microsoft.ca/.