Warner to release HD DVD titles using Microsoft's VC-1 codec

April 18, 2005

At the ongoing National
Association of Broadcasters convention, NAB2005, Microsoft and Warner Bros. have
announced their plans to collaborate on the release of HD DVD discs using
Microsoft's VC-1 codec. Both HD DVD and Blu-ray Disc support VC-1 as one of
three mandatory video codecs (the other two being MPEG2 and MPEG4 AVC).

Warner plans to release the first
HD DVD titles in the fourth quarter this year.

"Warner Bros. has
evaluated the video quality of VC-1 and found it to be outstanding, making
it an ideal format for the delivery of high-definition content," said
Chris Cookson, chief technology officer at Warner Bros. Entertainment,
Inc. "By releasing a wide range of titles in VC-1, we are creating great
new opportunities to bring high-definition video to
consumers."

"Warner Bros.' plan to use VC-1 for the release of HD DVDs
presents consumers with exciting new options for watching high-definition
content," said Blair Westlake, corporate vice president of the
Media/Entertainment & Technology Convergence Group at Microsoft. "As a
technology provider, Microsoft is encouraged by the industry's efforts to
deliver next-generation high-definition video experiences for consumers,
and we see the Warner Bros. collaboration as a significant
milestone."