Memory-Tech Corporation (Tokyo Japan President and CEO, Shiroharu Kawasaki) and Microsoft Corporation (Tokyo Japan, President and CEO, Houston Dalen) formed alliances for HD DVD commercial server technology development and services deployment.

<Background>
Memory-Tech and Microsoft have been collaborating for improvement and enhancement of HD DVD VC-1 CODEC and HDi interactivity. Interests and demands of HD DVD web connectivity is becoming higher and higher in the world wide market to clearly differentiate the new HD DVD format from the conventional DVD format and widen package software business opportunities.
Memory-Tech and Microsoft will promote HD DVD web connectivity jointly with studio partners of the world and accelerate the new software business deployment.

<Memory-Tech and Microsoft Business Alliances>
1. Memory-Tech and Microsoft establish technology partnership for HD DVD commercial server development.
2. Memory-Tech and Microsoft jointly promote HD DVD web connectivity based on HDi T jointly with studio partners of the world.
3. Memory-Tech and Microsoft will deploy wide rage of application and business development based on the HD DVD server technology and hosting know-how of the two companies.

“Web connectivity is one of the most important features for wide penetration of HD DVD products in the market. So far Microsoft has been working with Memory-Tech, who is leading HD DVD authoring and replication in the market, to improve and refine VC-1 CODEC. Collaboration for HD DVD server development between the two companies will contribute to acceleration and business growth of the HD DVD format in the world market” says Kazuo Sakai, Vice President, Digital Entertainment Partner Group of Microsoft.
“It is great honor for Memory-Tech to jointly develop HD DVD commercial server and make it available for studio partners with Microsoft. As HD DVD total service company, we would like to continue to support studio partners to develop very attractive HD DVD software for consumer benefits”says Shiroharu Kawasaki, President and CEDO of Memory-Tech.