RTL Group, the leading European entertainment network, announces its audited results for the year ended 31 December 2008.

Highlights

_____________

¹ Adjusted for scope changes and at constant exchange rates
² EBITA represents earnings before interest and income tax expense excluding impairment of goodwill, disposal groups and amortisation and impairment of fair value adjustments on acquisitions and gain or loss from sale of subsidiaries, joint ventures and other investments
³ Primarily launch costs of digital television channels in France, Germany and the UK
⁴ Adjusted earnings per share represents the net profit for the period adjusted for impairment of goodwill, disposal groups and amortisation of fair value adjustments on acquisitions and gain or loss from sale of subsidiaries, joint ventures and other investments, net of income tax expense and one-off tax effects

RTL Group increases revenue and EBITA, for the seventh consecutive year

• Reported EBITA of EUR 916 million, up 2.0 per cent, despite a tougher economic climate

• Reported Group revenue up 1.2 per cent to EUR 5,774 million; underlying revenue, at constant exchange rates, up 2.6 per cent

• Reported EBITA margin improved to 15.9 per cent

• Net profit attributable to RTL Group shareholders down to EUR 194 million (2007: EUR 563 million), mainly due to an impairment of goodwill of the UK TV activities amounting to EUR 337 million

• Net cash from operating activities of EUR 1,065 million resulting in an operating cash conversion of 114 per cent

• Proposed ordinary dividend for 2008 up to EUR 1.40, from EUR 1.30 for 2007; once again proposed extraordinary dividend of EUR 2.10 for 2008 (EUR 3.70 for 2007)

• Increasingly challenging advertising conditions across Europe

Mediengruppe RTL Deutschland and FremantleMedia with record EBITA

• Mediengruppe RTL Deutschland with its best year ever; EBITA up 25.6 per cent;
  leading position on the German TV advertising market significantly strengthened

• FremantleMedia reports growing revenue and EBITA figures for the fifth consecutive year, driven by its slate of international prime time hit formats; EBITA up 18.3 per cent

• EBITA of Groupe M6 in France impacted by a major programme investment for the European football championship 2008; free DTT channel W9 continued its rapid audience and revenue growth and generated positive EBITA for the first time

• RTL Nederland implemented a restructuring programme at the end of 2008;
  EBITA down 17.6 per cent also due to these one-time restructuring charges

Selective acquisitions and launches to strengthen core business activities

• Acquisition of a 66.6 per cent majority shareholding in Alpha Media Group, Greece’s number four broadcasting company

• RTL Group builds up comprehensive catch-up TV services in Germany (RTLnow.de), France (M6replay.fr), the Netherlands (RTLgemist.nl) and in the UK (Demand.Five.tv)

• Investments to strengthen RTL Group’s internet portfolio

  • Mediengruppe RTL Deutschland acquired the fast-growing social network Wer-kennt-wen.de

  • Groupe M6 acquired a 100 per cent stake in the Cyréalis group

• Launch of exclusive mobile TV channel RTL 24 in the Netherlands

• Relaunch of marketing agency UFA Sports to round off RTL Group’s portfolio and to further diversify revenue streams

“A position of strength”

Gerhard Zeiler, Chief Executive Officer of RTL Group, said:

“In spite of increasingly difficult advertising markets in Europe, in 2008 RTL Group increased its revenue and operating result for the seventh year running. The company has a broad-based, secure setup, and is active in many countries and business areas. In particular, strong performances at Mediengruppe RTL Deutschland and FremantleMedia contributed to the increase in profits.

Based on the 2008 results and the cash position, we propose a total dividend of EUR 3.50 per share - consisting of an ordinary dividend of EUR 1.40 and an extraordinary dividend of EUR 2.10.

This position of strength is the result of our strategy, which is based on strict investment criteria. In 2008, we significantly stepped up our online activities with targeted acquisitions and investments. After our takeover of the Alpha Media Group in Greece, we now have 45 TV channels in 11 European countries.

Operating in a very challenging time, we are experiencing a substantial slowdown in advertising bookings. We will respond to this by focusing on our core business, and by reviewing all costs and structures. This will result in a significantly lower cost base in all of our operations.

Given the current state of the advertising markets, and the very short-term bookings cycle, it is impossible to give reliable full-year guidance. But it has to be expected that the profitability level will be down compared to 2008.”

About RTL Group
RTL Group is the leading European entertainment network, with interests in 45 television channels and 32 radio stations in 11 countries and content production throughout the world. The television portfolio of Europe’s largest broadcaster includes RTL Television in Germany, M6 in France, Five in the UK, the RTL channels in the Netherlands, Belgium, Luxembourg, Croatia and Hungary, Alpha TV in Greece, Ren TV in Russia and Antena 3 in Spain. RTL Group’s flagship radio station is RTL in France, and it also owns or has interests in other stations in France, Germany, Belgium, the Netherlands, Greece, Spain and Luxembourg. RTL Group’s content production arm, FremantleMedia, is one of the largest international producers outside the US. Each year, it produces 10,000 hours of programming across 57 countries.

Verizon (NYSE:VZ) and CBS Corporation (NYSE: CBS.A and CBS) announced on January 12th comprehensive, new long-term program carriage agreements which bring new and expanded CBS programming to Verizon’s television and wireless customers.  Verizon has broadened and extended its rights for retransmission consent for CBS’s owned and operated television stations, Network and local video-on-demand for the FiOS TV platform as well as mobile rights for Verizon Wireless’ V CAST Video service. 

“We are extremely pleased to have reached this broad long-term agreement that recognizes the value of our programming,” said Leslie Moonves, President and CEO, CBS Corporation.  “Verizon subscribers will have continued access to the Number One TV network not only through FiOS TV, but also through V CAST on the mobile phone, which enhances our profile on a key emerging platform.”

“Verizon is focused on providing the most comprehensive and exciting entertainment to our customers across all our services and platforms,” said John Harrobin, Senior Vice President of Digital Media for Verizon. “We’re pleased to extend our relationship with CBS, which helps us deliver the hit shows and compelling content our customers want to enjoy.”

Under the new agreement, Verizon has secured

The expanded agreements also provide national video-on-demand rights for programs in both standard and high definition format, including such leading shows as “CSI: Crime Scene Investigation,” “NCIS,” “Survivor,” and “Numb3rs,” as well as video-on-demand rights for local news, also in SD and HD.

And, Verizon will continue to offer CBS programming on Verizon FiOS TV, its all-digital fiber-optic TV service, which is available in parts of 14 states, and reaches more than 1.6 million subscribers.

Other terms of the agreement were not disclosed.

About CBS Corporation

CBS Corporation is a mass media company with constituent parts that reach back to the beginnings of the broadcast industry, as well as newer businesses that operate on the leading edge of the media industry. The Company, through its many and varied operations, combines broad reach with well-positioned local businesses, all of which provide it with an extensive distribution network by which it serves audiences and advertisers in all 50 states and key international markets. It has operations in virtually every field of media and entertainment, including broadcast television (CBS and The CW – a joint venture between CBS Corporation and Warner Bros. Entertainment), cable television (Showtime Networks and CBS College Sports Network), local television (CBS Television Stations), television production and syndication (CBS Paramount Network Television and CBS Television Distribution), radio (CBS Radio), advertising on out-of-home media (CBS Outdoor), publishing (Simon & Schuster), interactive media (CBS Interactive), music (CBS Records), licensing and merchandising (CBS Consumer Products), video/DVD (CBS Home Entertainment), in-store media (CBS Outernet) and motion pictures (CBS Films).  For more information, log on to www.cbscorporation.com.

About Verizon

Verizon Communications Inc., headquartered in

The NRJ Group’s revenues (excluding barters transactions) came to 331.3 million euros in 2008, comparedwith 359.7 million euros in 2007, down 7.9% (-4.3% at constant scope and exchange rates). This changenotably reflects the consequences of the gradual reduction of the Group’s stake in NRJ Mobile, as well as theimpact of the end of the musical “Le Roi Soleil” following its final performances in July 2007. Excluding mobiletelephony and “Le Roi Soleil”, the Group’s revenues would have increased by 1.7%.In the fourth quarter, the Group generated 89.2 million euros in revenues, compared with 99.9 million euros in 2007, down 10.7% (-6.0% at constant scope and exchange rates). *** 

Following a particularly difficult fourth quarter due to the economic environment, the radio business inFrance recorded 222.1 million euros in revenues over 2008, compared with 239.6 million euros in 2007,representing a drop of 7.3% (-14.6% in Q4). In the fourth quarter, the downturn in business stems morespecifically from the fall in advertising investments for the retail, transport and telecommunications sectors. Over the full year, the retail sector’s advertising investments are up slightly, while the transport, services,telecommunications and toiletries-beauty product sectors show a marked downturn. 

Revenues from international radio activities climbed to 33.8 million euros in 2008, up 5.3% on 2007, notablydriven by growth in business on the Germanic region over the full year. Television activities generated 25 million euros in revenues over 2008, up 187.4% in relation to 2007. In thefourth quarter, despite the unfavourable economic environment, this business achieved sustained revenuegrowth (+186.7%). In December 2008, NRJ 12 achieved a national audience share of 1.1%* for this channel (1%* over the full year in 2008). NRJ 12 has continued to achieve satisfactory growth in its audience figures, and now attracts close to 24 million* viewers each week. 

* Source: Médiamétrie Médiamat Annuel 2008 Revenues on the telephony business came to 7.2 million euros in 2008, compared with 18.3 million euros in 2007 in light of the reduction of the Group’s stake in NRJ Mobile. This business has been deconsolidated since 1 May 2008, and the Group did not record any revenues for NRJ Mobile over the second half of 2008, compared with the 9.1 million euros in revenues booked over the second half of 2007. 

Non-media activities recorded 17.4 million euros in revenues over 2008, compared with 41.5 million euros in 2007. In 2008, the musical “Le Roi Soleil” contributed 0.8 million euros to consolidated revenues, compared with 23.4 million euros in 2007. Excluding “Le Roi Soleil”, the non-media division would have generated 16.6 million euros in revenues over 2008, compared with 18.1 million euros in 2007. 

Lastly, the Group’s broadcasting business contributed 24.7 million euros to consolidated revenues in 2008, up 35.7% on 2007, thanks in particular to the development of its activities on the digital terrestrial television (DTT) broadcasting market. In total, including revenues generated within the Group, the broadcasting business posted 37.6 million euros in revenues for 2008.

The Nielsen Company released on January 23rd its annual Guide to the Super Bowl, which showcases a full range of consumer and media information about the most anticipated marketing event in the U.S. This year’s matchup between the Arizona Cardinals and the Pittsburgh Steelers is scheduled for February 1 in Tampa, FL.Among the key findings from Nielsen:

• TELEVISION: Last year’s tilt between the Patriots and the Giants was viewed by a record 97.5 million people nationwide. As expected, the Super Bowl was the most-watched TV broadcast in 2008.

• ADVERTISERS: The cost of a 30-second spot in last year’s Super Bowl was $2.7 million. Total spending for the game reached over $195 million. Anheuser-Busch bought the most commercial time (4 minutes total). The highest-rated commercial minute was the Victoria’s Secret spot at 9:44pm, seen by 103.7 million viewers. The most-liked ad was produced by the NFL. The most-recalled ad was produced by FedEx.

• ONLINE: Super Bowl advertisers saw a 24 percent jump in Web traffic the day after last year’s Super Bowl. The Pepsi commercial featuring Justin Timberlake gathered the most Internet buzz.

• MUSIC AND MOVIES: In the week following Tom Petty & the Heartbreakers’ halftime performance last year, sales of their “Greatest Hits” album jumped 196%. Petty’s “Anthology: Through the Years” album jumped 240% that same week. Box office sales on the weekend of Super Bowl Sunday show notable decline. The NFL Super Bowl XLII DVD was the #1 selling sports DVD in 2008.

• SNACKS AND BEER: The Super Bowl is the 8th-largest beer-selling event each year. Markets with hometown teams involved in the big game are more likely buy more beer. Potato chips are the snack of choice at Super Bowl parties, but tortilla chips are quickly gaining.

• CONSUMER TRENDS: There’s a softer side to football fans. People identifying themselves as avid NFL fans outpaced total U.S. spending in skin care by 74% from 2005 to 2007. NFL fans are also more likely to own hi-tech electronic items than the average adult.

• DEMOGRAPHICS: About 138 million adults - or more than 60% of the adult population in the U.S. - are NFL fans. The league is slightly more likely to attract fans from higher education and income brackets. Fans are also generally more physically active than the average American.

For more details and analysis, please see the full downloadable news release.

For additional advertising and media trends, visit Nielsen’s blog at: http://blog.nielsen.com/nielsenwire/.

About The Nielsen Company

The Nielsen Company is a global information and media company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter, and Adweek). The privately held company is active in more than 100 countries, with headquarters in New York, USA. For more information, please visit, www.nielsen.com.

Universal Music Group (UMG), the world’s leading music company, and Kyte (www.kyte.com), the universal digital media platform, announced on January 16th at the MidemNet music conference a global partnership in which Kyte will be an online and mobile video platform provider for UMG recording artists and subsidiary labels worldwide. UMG and Kyte will also partner in the development of new interactive mobile entertainment applications to reach and engage fans on the go. The branded Kyte channels of UMG artists such as All American Rejects, Pussycat Dolls, Soulja Boy Tell Em and Lady Gaga, have been successful, with the artists using Kyte’s online and mobile production tools to easily, and cost-effectively, create and broadcast live and on-demand video content that drives fans to the artists’ online and branded mobile web destinations.  Fans are engaging with the artists for longer durations through Kyte’s unique interactive features, including multimedia chat, and the ability to comment and rate Kyte shows.  Fans are also building online and mobile communities by virally sharing branded Kyte channels on social networks, blogs, web sites, and mobile devices.

“We are delighted to be working with Kyte, whose innovative media platform is providing a dynamic new way to create, distribute and monetize branded video content,” stated Rio Caraeff, Executive Vice President of eLabs, UMG’s market-leading division responsible for digital business strategy, business development and new technology opportunities. 

“We are very excited to partner with UMG,” said Daniel Graf, CEO of Kyte.  “Millions of fans around the world are engaging with their favorite UMG artists through the Kyte Platform. The artists are creating authentic, raw video content that the fans love – behind the scenes on a music video shoot, candid clips from the tour bus, collaborations in the studio – and the fans are communicating directly with the artists through our multimedia chat feature. This is what Kyte is all about; providing a platform that enables brands to easily create and distribute video content, engage with fans, and monetize.”

Kyte Platform

Kyte provides an end-to-end, online and mobile platform for the production, distribution and monetization of digital content. The Kyte Platform enables media and entertainment brands to:

•        Produce – create or upload live and on-demand, online and mobile video and pictures

•        Distribute – broadcast content to multiple online and mobile destinations simultaneously

•        Engage – interact with an audience and build community through multimedia chat and branded user generated content

•        Analyze – report and measure distribution and user engagement

•        Monetize – create new revenue streams and monetize branded content

About Universal Music Group

Universal Music Group is the world’s leading music company with wholly owned record operations or licensees in 77 countries. Its businesses also include Universal Music Publishing Group, the industry\’s leading global music publishing operation.

Universal Music Group\’s record labels include Decca, Deutsche Grammophon, Disa, Emarcy, Fonovisa, Interscope Geffen A&M Records, Island Def Jam Music Group, Lost Highway Records, Machete Music, MCA Nashville, Mercury Nashville, Mercury Records, Philips, Polydor Records, Universal Motown Republic Group, Universal Music Latino, Universal Records South, and Verve Music Group as well as a multitude of record labels owned or distributed by its record company subsidiaries around the world. The Universal Music Group owns the most extensive catalog of music in the industry, which includes the last 100 years of the world\’s most popular artists and their recordings. UMG\’s catalog is marketed through two distinct divisions, Universal Music Enterprises (in the U.S.) and Universal Strategic Marketing (outside the U.S.). Universal Music Group also includes eLabs, its new media and technologies division; Bravado, its merchandising company; Twenty-First Artists, its full service management division; and Helter Skelter, its live music agency.

Universal Music Group is a unit of Vivendi, a global media and communications company.

About Kyte

Kyte is a universal digital media platform that provides an end-to-end, online and mobile solution for the production, distribution and monetization of digital content. Through strategic partnerships with the world’s leading media companies, mobile carriers, and mobile device manufacturers, Kyte is building a global digital content distribution platform with massive user engagement and monetization potential.

The company is headquartered in San Francisco, California, with a European office in Zurich, Switzerland. Investors include Draper Fisher Jurvetson, Telefónica, Nokia Growth Partners, Steamboat Ventures, TeliaSonera, DoCoMo Capital, Holtzbrinck Ventures, Swisscom and others.  Visit Kyte online at http://www.kyte.com/

Universal Music Group (UMG), the world’s leading music company, has entered into an agreement with ID Interactive Inc. to provide a custom-ringtone solution for its music labels.

The UrTone (TM) player, developed by ID Interactive Inc., allows consumers to select any part from any track offered by their favorite artist, and customize a ringtone to be delivered instantly to their mobile handset. Users can alter start and end points of the ringtone, as well as the actual duration of the tone to within 1/10 of a second. These online stores will be compatible with every major U.S. phone carrier. “Universal is dedicated to offering music fans the very best in phone personalization and our new agreement with ID Interactive is a great way to start the new year,” stated Rio Caraeff, Executive Vice President of eLabs, UMG’s market-leading division responsible for digital business strategy, business development and new technology opportunities. “Their UrTone (TM) player is an elegant and excellent platform to showcase the high quality and depth of UMG’s extensive catalog.”

“We are thrilled to have been given this opportunity to partner with the world’s leading music company. The UrTone (TM) player is ideal to power UMG content, as these stores will provide consumers unlimited options with unprecedented access to creating ringtones from an amazing and unparalleled roster of artists across all the UMG labels,” added Bobby Israeli, Senior VP of Sales & Marketing at ID Interactive.

ID Interactive Inc. is a privately funded company with offices in New York, San Francisco, London & Manchester, specializing in custom mobile content delivery, digital marketing and strategies, and web design. More information available at www.idinteractive.net.

About Universal Music Group

Universal Music Group is the world’s leading music company with wholly owned record operations or licensees in 77 countries. Its businesses also include Universal Music Publishing Group, the industry\’s leading global music publishing operation.

Universal Music Group\’s record labels include Decca, Deutsche Grammophon, Disa, Emarcy, Fonovisa, Interscope Geffen A&M Records, Island Def Jam Music Group, Lost Highway Records, Machete Music, MCA Nashville, Mercury Nashville, Mercury Records, Philips, Polydor Records, Universal Motown Republic Group, Universal Music Latino, Universal Records South, and Verve Music Group as well as a multitude of record labels owned or distributed by its record company subsidiaries around the world. The Universal Music Group owns the most extensive catalog of music in the industry, which includes the last 100 years of the world\’s most popular artists and their recordings. UMG\’s catalog is marketed through two distinct divisions, Universal Music Enterprises (in the U.S.) and Universal Strategic Marketing (outside the U.S.). Universal Music Group also includes eLabs, its new media and technologies division; Bravado, its merchandising company; Twenty-First Artists, its full service management division; and Helter Skelter, its live music agency.

• Practical - the 3G+ M6 mobile key is ready to use - no need for a subscription,
• Easy to use - with automatic installation as soon as you go online,
• Economic - with two hours browsing time included in the purchase price,
• Tailored to its public - available in bright colours and complete with a memory card to store files.

With the 3G+ M6 mobile key, young people now have a special offer to access the Internet from any computer anytime without taking out a subscription and with no risk of exceeding pre-paid offers. Activation of the 3G+ M6 Mobile key is instantaneous. All you have to do is plug it into a computer. As soon as you are connected to the network you benefit from 2 hours of Internet browsing.

The 3G+ M6 mobile key is available(1) from 13 November, at the recommended retail price of €39 (€69 minus €30 reimbursed), in France Telecom sales branches, Orange stores, at orange.fr and m6mobile.fr, as well as in supermarket IT departments. From 16 November, it will also be on sale in tobacconists and newsagents.

Customers who already have an M6 mobile blocked subscription can purchase the 3G+ M6 Mobile key for the recommended special offer price of € 19(2).

Until 31 March 2009, the 3G+ M6 mobile key offers you unlimited(3) browsing on a selection of M6 web sites:

M6.fr, W9.fr, teva.fr, wideo.fr, m6mobile.fr, jeuxvideos.fr, ozap.com, M6info.fr, 100%foot.fr, deco.fr, turbo.fr, achetezfacile.com. To browse the Internet, users have a choice of four passes available from the M6 online store:

• €3 20-minute pass (valid 24 hours)
• €8 1-hour pass at (valid two weeks)
• €10 1-hour + 1-hour evening (8pm to 8am) pass (valid two weeks)
• €10 limited edition day pass available until 31 March 2009 (valid 24 hours and up to 75 Mb).

For Nicolas de Tavernost, Chairman of the M6 Executive Board, “This development marks the beginning of a new phase in our partnership with Orange, and is a testament to its strength and longevity. With this launch, M6 Group wants to make the Internet available to everyone, wherever they are.”

For Louis-Pierre Wenes, Executive Director of Orange in France: “This new 3G+ key is 100% dedicated to young people and complements existing Orange offers, whilst adding the dynamism and attractiveness of the M6 mobile by Orange universe. The simplicity and accessibility of this offer will make accessing the Internet easier”.

The launch of the M6 mobile key by Orange will be supported by a TV, Internet, and poster campaign aimed at students, and via a partnership with the CGR and Allociné cinema networks.

About M6 Mobile by Orange
M6 mobile combines marketing power and expertise in mobile telephony to devise solutions specially tailored for a young audience. The M6 mobile range has been extended to meet the needs of the 15-25 yr age group, with the first blocked subscription packages starting at €19.99, with 4 unlimited usages : unlimited calls, SMS, all Internet and TV, depending on the chosen subscription.
With M6 mobile, subscribers have unlimited access 24/7 to the M6 group channels, live on their mobiles via the Inside M6 mobile portal.
M6 mobile is also a pre-paid card and a 3G+ key.

About M6 Group
In just 20 years, M6 has become a major media player and has established a multimedia group.
In addition to M6, the second most popular general TV channel among the under-50s, the group has 9 digital channels, including W9, France’s number one DTT channel, Paris Première, Teva and numerous diversification activities: publishing, trademark licences, records, videos, magazines, shows, collections, derivatives, Internet, mobile telephony, cinema, mail order, first division football club.
Its multimedia subsidiary, M6 Web, handles Internet activities, programme interactivity and mobile telephony, with M6 mobile by Orange, the leading alternative operator for 15-25 year olds.
Information about M6 Group is available at http://www.m6groupe.fr

About Orange
Orange is the key brand of France Telecom, one of the world’s leading telecommunications operators. France Telecom serves more than 177 million customers in five continents as of September 30, 2008, of which two thirds are Orange customers. The Group had consolidated sales of 52.9 billion euros in 2007 and 39.9 billion euros for the nine first months of 2008. As of September 30, 2008, the Group had 117.6 million mobile customers and 12.4 million broadband Internet (ADSL) customers.
Launched in June 2005, the NExT program (New Experience in Telecommunications) will enable the Group to pursue its transformation as an integrated operator and make France Telecom the benchmark for new telecommunications services in Europe. In 2006, Orange became the Group’s single brand for Internet, television and mobile services in the majority of countries where the company operates, and Orange Business Services the banner for services offered to businesses worldwide. France Telecom is the number three mobile operator and the number one provider of broadband Internet services in Europe and one of the world leaders in providing telecommunication services to multinational companies.
France Telecom (NYSE:FTE) is listed on Euronext Paris (compartiment A) and on the New York Stock Exchange.

Google launched on November 11 Gmail voice and video chat, making it simple for people around the world to chat in high-quality video for free right within Gmail. All you need is a webcam and a small web browser plugin, and you can start video chatting with your friends, family, and coworkers on Gmail and Google Apps. Gmail voice and video chat lets you start a video chat without switching to another application or signing up for another account. And if you don’t have a webcam, you can simply chat by voice. We’ve made it easy enough that your mom — or your employees — will actually use it.

The launch comes as video communication grows in popularity; many of the latest lines of laptops, for example, come with built-in webcams. Businesses stretched across continents and timezones want more face-to-face collaboration among their employees, but in this economic climate, they’re looking for ways to cut travel and IT expenses. Having a meeting with a colleague over video allows communications to continue in person without the expense of traveling there. Whether it’s a coworker demoing a new product, or a first-time grandmother saying hello to her new grandson, sometimes there’s no substitute for speaking to and seeing someone. Google is offering browser-based voice and video chat as a natural extension to webmail and instant messaging, allowing people to choose how they want to communicate at each moment — by email, instant message, voice, or video.

To get started, open a Gmail chat window, click on the “Options” menu at the bottom, and choose “Add voice/video chat,” which will walk you through a one-time installation of a free plugin (a quick 2 MB download). When you re-open Gmail you’ll notice your “Options” link in your chat window has changed to “Video & more”. Open this menu and click “Start video chat” to see and hear your partner in high-quality video. You can pop out the video and change its size and position, or switch to full screen.

Gmail is the first leading webmail service to include video chat. Gmail voice and video chat is being rolled out over the next day or so on PCs and on Macs. Google Apps customers get this service as well, at no extra charge, and can voice or video chat with any other Gmail or Apps users.

Gmail has always been about more than just email — it’s increasingly a communications hub, always pushing the limits of browser-based applications. Video chat is the latest in a weekly stream of Gmail features that includes, most recently, Gmail Labs (a public testing ground for experimental features like embeddable gadgets, the Forgotten Attachment Detector, and Mail Goggles ), a mobile client for Android phones, animated emoticons, and more.

To use voice and video chat, your PC must have Windows XP or a more recent version, or an Intel-Based Mac with Mac OS X v10.4 or later. It works in browsers that support the latest version of Gmail (Google Chrome, Firefox 2.0+, Internet Explorer 7.0, and Safari 3.0).

Microsoft Research teamed up with Disney•Pixar to create a virtual tour of the universe hosted by none other than WALL•E, the animated robot from Disney•Pixar’s latest film, “WALL•E,” which is available in stores today on DVD and Blu-ray Disc. Anyone with a computer and an Internet connection can take the tour and view the universe from WALL•E’s perspective by visiting http://www.worldwidetelescope.org. A teaser for the tour can also be seen on the DVD and Blu-ray Disc.Along for the adventure with WALL•E, Academy-Award-winning director Andrew Stanton narrates the tour. “Using Microsoft’s WorldWide Telescope, WALL•E takes you on a real ride through space,” Stanton said. “After watching the movie on DVD, the whole family will be inspired to learn more about the world in which we live and the universe beyond.”

WorldWide Telescope is a rich Web application that brings together imagery from the best ground- and space-based observatories across the world to allow people to easily explore the night sky through their computers. WorldWide Telescope has been embraced by the astronomical and education communities as a compelling, astronomical resource for students and lifelong learners.

“WorldWide Telescope is about making science fun for everyone,” said Curtis Wong, manager of Microsoft’s Next Media Research Group. “By working with Disney•Pixar, we’re enabling kids and families to discover the magic of the universe for themselves in an even more engaging way. What could be more fun than exploring space with a famous robot?”

About Microsoft Research

Founded in 1991, Microsoft Research is dedicated to conducting both basic and applied research in computer science and software engineering. Its goals are to enhance the user experience on computing devices, reduce the cost of writing and maintaining software, and invent novel computing technologies. Researchers focus on more than 55 areas of computing and collaborate with leading academic, government and industry researchers to advance the state of the art in such areas as graphics, speech recognition, user-interface research, natural language processing, programming tools and methodologies, operating systems and networking, and the mathematical sciences. Microsoft Research currently employs more than 800 people in six labs located in Redmond, Wash.; Cambridge, Mass.; Silicon Valley, Calif.; Cambridge, England; Beijing, China; and Bangalore, India. Microsoft Research collaborates openly with colleges and universities worldwide to enhance the teaching and learning experience, inspire technological innovation, and broadly advance the field of computer science. More information can be found at http://www.research.microsoft.com.

About Pixar Animation Studios

Pixar Animation Studios, a wholly-owned subsidiary of The Walt Disney Company, is an Academy Award^®-winning film studio with world-renowned technical, creative and production capabilities in the art of computer animation. Creator of some of the most successful and beloved animated films of all time, including Toy Story, Finding Nemo, The Incredibles, Cars, Ratatouille, and most recently, WALL•E. The Northern California studio has won 21 Academy Awards^® and its nine films have grossed more than $4.5 billion at the worldwide box office to date. The next film release from Disney•Pixar is Up (May 29, 2009).

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.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass on Microsoft’s corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/presspass/contactpr.mspx.

Zune, Microsoft Corp.’s digital music and entertainment service, announced on November 19 landmark agreements with major and independent music labels to bring significant new value to the subscription music model. The Zune Pass subscription service currently gives consumers on-demand access to millions of tracks for $14.99 per month. Starting today subscribers will also get to select 10 tracks per month to keep and add them to their permanent collection (an estimated $10 value).Agreements have been signed between Microsoft and EMI Music, Sony BMG Music Entertainment, Universal Music Group (UMG) and Warner Music Group, as well as independent distributors INgrooves, Independent Online Distribution Alliance and The Orchard. The Orchard delivers digital music, video and brand services globally, and represents labels including Barsuk Records (Nada Surf) and Fania Records (Hector Lavoe, Celia Cruz). IODA represents labels including Arts & Crafts (Broken Social Scene, The Stills) and Ghostly International (Matthew Dear, School of Seven Bells). The new enhanced subscription model came about as a result of close collaboration with all of these companies.

Zune Pass subscribers will have the added benefit of retaining digital rights management (DRM)-free MP3 tracks from Sony BMG and UMG, in addition to MP3 tracks from EMI Music, Warner Music Group and a large portion of the independent music labels. With the addition of tracks from UMG and Sony BMG, Zune will soon offer over 90 percent of its music in the MP3 format.

“The way people consume music has changed. With the shift to digital from CDs, it is more challenging than ever to offer the right mix of deep content, music discovery and economic value,” said Chris Stephenson, general manager of global marketing for Zune at Microsoft. “People want the freedom to listen to whatever they want across millions of songs, combined with the confidence that they can keep their favorite tracks forever.”

From its inception, Zune has bet on the power of subscription, not only as a consumption model but also as a way to highlight the music discovery features central to the Zune experience and the PC platform. The Zune service gives consumers convenient and unlimited access to the music they want, and also connects them to other music fans and expert sources to help them find the music they will love. The new enhancements to the Zune Pass subscription service offer unprecedented value for all music fans.

“The subscription model continues to redefine the digital music landscape, and today’s announcement is great news for consumers, artists and labels,” said Simon Renshaw, chief executive officer of Strategic Artist Management (representing Dixie Chicks, Miranda Lambert, Everclear, Tila Tequila and Aly & AJ). “This breakthrough offer makes it easier than ever for consumers to discover new music and will encourage deeper engagement in the digital music space, and that is good for the entire industry.”

A Zune Pass gives a subscriber access to millions of tracks that can be streamed or downloaded from a PC or directly from a Zune device when in a wireless hot spot.¹ Downloaded music can be shared among up to three PCs and three Zune devices. In addition to unlimited downloads, consumers now also get to select 10 free tracks per month to keep and add to their permanent collection. These tracks can be burned to a CD or moved to other devices even if their subscription ends.

Since the launch of the Zune portable media player and music service two years ago, Zune has invested in improving the subscription model and the discovery experience it brings to life. With the recent launch of Zune 3.0, Microsoft built additional value into the Zune Pass offering by adding new features focused on music discovery and personalizing the music experience for each user:

To give people a chance to experience the Zune Pass subscription, Zune is offering a free, 14-day trial to all new customers.² More information is available at http://www.zune.net/free.

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, the Zune Marketplace online store, 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 http://www.zune.net/en-us/press.

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.

¹ Zune is a monthly music subscription service. DRM-free MP3s, videos, and some songs aren’t available via Zune Pass. Available content may vary over time.

² Keep 10 tracks capability is not available with the free trial.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass on Microsoft’s corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/presspass/contactpr.mspx.