EXHIBIT 99.2
MICROSOFT AND NTL ANNOUNCE STRATEGIC PARTNERSHIP TO ACCELERATE DEPLOYMENT
OF BROADBAND SERVICES IN THE U.K. AND THE REPUBLIC OF IRELAND
MICROSOFT TO MAKE $500 MILLION INVESTMENT IN NTL
REDMOND, WASH. AND NEW YORK - JAN. 25, 1999 - Microsoft Corp. and NTL Inc.
today announced an agreement to jointly develop new, broadband services for
delivery to customers in the United Kingdom and Ireland.
In addition, Microsoft will make a $500 million investment in NTL to
accelerate deployment of high-speed voice, video and data services over its
national fiber-optic telecommunications networks and to continue the company's
rapid introduction of advanced Internet, telephone and cable television services
over its broadband facilities. NTL is Britain's leading new-entrant local
telecommunications competitor, with more than 1.4 million telephone, cable
television and Internet customers.
"Microsoft believes in our vision of bringing advanced digital Internet,
telephone and television services to consumers and businesses throughout the UK
via all platforms," said Barclay Knapp, president and CEO of NTL. "NTL's
pioneering marketing, network and back-office resources, coupled with
Microsoft's world leadership in personal computing and digital television, will
make for a great combination."
"NTL and Microsoft share a common vision for the delivery of new and
exciting digital technologies and services to NTL cable customers in the UK and
Ireland," said Craig Mundie, Microsoft's senior vice president for consumer
strategy. "We are very excited by the opportunities we will have for expanding
customer choice and control of their future TV experience."
Microsoft and NTL will work together closely in the development of new
digital services
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MICROSOFT AND NTL ANNOUNCE STRATEGIC PARTNERSHIP PAGE 2
and intend to enter into further agreements regarding software and services as
opportunities arise throughout 1999. Specifically, Microsoft and NTL will form a
Technology Group to guide the development of new digital services. In
recognition of Microsoft's extension of these products and services to NTL,
Microsoft will receive 1.2 million five-year warrants to purchase NTL common
stock at an exercise price of $84 per share.
Microsoft has agreed to purchase $500 million of NTL's 5.25 percent
convertible preferred stock. The preferred stock is convertible into NTL common
stock at a conversion price of $100 per share. The preferred stock is redeemable
10 years from the date of issuance in cash or NTL common stock and may be
redeemed by NTL on the earlier of seven years or the date on which NTL's common
stock has traded above $120 for 25 consecutive trading days. Dividends are
payable at NTL's option in cash, common stock or additional shares of preferred
stock. The closing of the purchase of the preferred stock is expected to occur
shortly.
NTL Inc. (NASDAQ: NTLI; EASDAQ: NTLI.ED) is a leading alternative
telecommunications company in the United Kingdom. The company offers local
business and residential telephony, residential cable television and Internet
services over advanced broadband fiber networks in six major franchise areas in
the UK. Through its national telecoms services division, the company owns and
operates one of only five independent national telecoms networks in the UK, and
offers national business telecoms, national and international carrier
telecommunications services, and satellite and radio communications services.
The company's broadcast services division operates a national broadcast
transmission network of more than 1,200 owned and shared transmission sites, and
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MICROSOFT AND NTL ANNOUNCE STRATEGIC PARTNERSHIP PAGE 3
offers digital and analog broadcast transmission services to major television
and radio stations nationwide in the UK.
Microsoft (Nasdaq "MSFT") is the worldwide leader in software for personal
computers. The company offers a wide range of products and services for business
and personal use, each designed with the mission of making it easier and more
enjoyable for people to take advantage of the full power of personal computing
every day.
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Microsoft is either a registered trademark or a trademark of Microsoft Corp. in
the United States and/or other countries.
FOR FURTHER INFORMATION FROM NTL, CONTACT:
In the U.S.: John F. Gregg, Managing Director - Corporate Finance & Development;
Richard J. Lubasch, Senior Vice President - General Counsel; or Kathy Mikrakis -
Investor Relations at (212) 906-8440
In the UK: Alison Smith, Group Communications at (01252) 402662; or via e-mail
at investor_relations@NTLI.com.
FOR MORE INFORMATION FROM MICROSOFT, ANALYSTS ONLY:
Carla Lewis, Senior Director, Investor Relations, (425) 936-3703
FOR MORE INFORMATION FROM MICROSOFT, PRESS ONLY:
Tom Pilla, Microsoft Corp., (425) 936-0756
Heidi Rothauser, Waggener Edstrom, (425) 637-9097
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.
Shareholder and financial information is available at
http://www.microsoft.com/msft/.