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Phase One, a Digital Photography Leader, Acquires Microsoft's Expression Media Product

Agreement focuses on strong customer support throughout transition.

Redmond, Wash. and Copenhagen, Denmark, May 26, 2010 /PN - Phase One/ Microsoft Corp. and Phase One A/S, a leader in digital photography, are announcing that Phase One acquired the Microsoft Expression Media product. This agreement is built on an existing strategic alliance between the companies forged in 2007 to improve digital imaging solutions for professional and enthusiast photographers.

Expression Media is a leading digital asset management application used to catalog and organize photos, video and music for effortless retrieval, presentation and sharing. Expression Media will join Phase One's product lineup, which includes open-platform-based, medium-format camera systems able to render up to 60.5 megapixel resolution, and Capture One raw-conversion and image-editing software, which supports more than 170 different file formats and provides superior image quality with excellent color and detail. Phase One products are used by some of the world's leading photographers.

"We're excited about taking ownership of Expression Media," said Henrik O. Hakonsson, president and CEO, Phase One. "We have worked with Microsoft for several years, during which many of our customers have chosen Expression Media for their digital asset management needs. We are now planning product developments to help meet the growing needs of current and future customers. As an immediate benefit to existing Expression Media customers who may not yet have tried it, we are offering a free copy of Capture One to help enhance their photographic workflow."

Under the terms of the agreement, Phase One takes full ownership of the Expression Media product. To ensure a smooth transition for Expression Media customers, Microsoft will continue to provide support to retail customers for 90 days. Phase One will begin offering support for the Expression Media product after the 90-day transition period. Microsoft customers who are currently using Expression Media under an Enterprise Agreement will continue to receive support from Microsoft through the term of their agreements. Financial terms of the agreement were not disclosed.

"Microsoft's sale of Expression Media to Phase One, within the context of the companies' relationship, is good news for the future of the product and for its customers," said IDC analyst Ron Glaz. "Phase One's focus and expertise in the digital photography market make it well suited to drive product developments that will best serve the growing needs of imaging professionals."

"Phase One is a respected and deeply committed leader in the digital photography market. With its strong experience in digital imaging software solutions, we're thrilled that it will drive this technology forward," said Josh Weisberg, director of Strategy and Business Development at Microsoft. "Through this agreement, we've made every effort to ensure that the integrity of the Expression Media technology remains intact and that our customers experience a seamless transition."

The agreement was brokered by Microsoft's IP Ventures program, a vehicle for Microsoft to get technologies into the hands of other businesses, spurring the economy and putting the best innovations in the hands of consumers. Microsoft will continue to develop the Expression Studio design tools for Silverlight and .NET.

Additional information about the Expression Media product and transition to Phase One is available at http://www.microsoft.com/prophoto/expressionmedia2/default.aspx and http://www.phaseone.com/expressionmedia2.

About Phase One

Phase One is the world's leader in open-platform based medium format camera systems and solutions. Phase One medium format cameras, digital backs and lenses are designed to deliver superior quality image capture and investment value. Phase One's Capture One software helps streamline capture and post-production processes for both medium format and DSLR cameras. Phase One products are known for their quality, flexibility and speed enabling pro photographers shooting in a wide range of formats to achieve their creative visions without compromise. For more information about the products, visit the Phase One web site on http://phaseone.com.

Phase One is an employee-owned company based in Copenhagen with offices in New York, London, Tokyo, Cologne and Shanghai.

Phase One and Capture One are registered trademarks of Phase One A/S. All other brand or product names are trademarks or registered trademarks of their respective holders.

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.


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