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ContentGuard

Time Warner Becomes a Strategic Investor in ContentGuard

Bethesda, MD (ots)

New Investment From Time Warner and Expanded Investment From  
Microsoft to Promote Further Development and Innovation in Digital
Distribution and Digital Rights Management
ContentGuard, a leading provider of Digital
Rights Management (DRM) technology, today announced that Time Warner
Inc. (NYSE: TWX) has become a strategic investor, joining existing
long-term strategic investor Microsoft Corp. (NASDAQ: MSFT), which
has increased its investment. Time Warner, Microsoft and ContentGuard
purchased substantially all of the ownership held by Xerox
Corporation (NYSE: XRX), which was the source of ContentGuard's
original technology. Xerox will retain a small equity interest in the
company.
Working in equal collaboration, Time Warner and Microsoft expect
to closely work with ContentGuard to further develop ContentGuard's
rich portfolio of intellectual property and promote continued
development and innovation in the areas of digital distribution and
DRM.
"This is a significant milestone, not only for ContentGuard but
for the digital content distribution market in general," said Michael
Miron, CEO of ContentGuard. "Together with Microsoft's, Time Warner's
input into our company's direction will accelerate the pace of
development for the new standards and technologies that we champion.
This is vital to the market's ability to act on the potential of
digital content and give more choice and value to customers."
"Today's announcement marks an important step in our work on DRM,
as well as in our collaboration with Microsoft on this key
initiative," said Ron Grant, senior vice president at Time Warner.
"With its portfolio of fundamental technologies, ContentGuard is
helping to create standards for use in DRM solutions. Together with
ContentGuard and Microsoft, among other partners, we will continue to
work toward the day when we can successfully protect content and
offer consumers exciting new digital media products and services."
"ContentGuard's strong technology portfolio will play an important
role in enabling the use of DRM solutions that make sense for
producers and consumers of digital content," said Marshall Phelps,
deputy general counsel and vice president of intellectual property
for Microsoft. "We are pleased to reaffirm our commitment to
ContentGuard, and we welcome Time Warner's collaboration in this
effort."
About ContentGuard, Inc.
ContentGuard, Inc. is an inventor of technologies for digital
rights management and the persistent, authorized use of any digital
resource. It is expanding the market for digital content by
developing new technologies and tools, and driving the adoption of
industry standards. ContentGuard licenses patented technologies,
which cover broad, fundamental elements of digital rights management
and distributed authorization.
ContentGuard's portfolio of DRM patents originated at Xerox's Palo
Alto Research Center (PARC). Technologies developed by ContentGuard
include XrML (eXtensible rights Markup Language), which is now the
basis of the International Organization for Standardization (ISO)
approved MPEG REL, the standard rights expression language for
assigning usage rights and conditions to any digital object. Launched
in April 2000, ContentGuard conducts its operations in Bethesda, MD,
and El Segundo, CA. The company is owned by Time Warner, Inc. (NYSE:
TWX), and Microsoft Corporation (NASDAQ: MSFT) with Xerox Corporation
(NYSE: XRX) holding a small equity interest. For more information,
please visit www.contentguard.com.
Customer Contacts:
For details about ContentGuard technology visit
www.contentguard.com
Microsoft is a registered trademark of Microsoft Corp. in the
   United States and/or other countries.
The names of actual companies and products mentioned herein may be
   the trademarks of their respective owners.

Contact:

Gina Giachetti
Text 100 for ContentGuard
Phone: +1/415-593-8432
E-Mail: ginag@text100.com

Tricia Primrose Wallace
Time Warner, Inc.
Phone: +1/212-484-7450
E-Mail: Tricia.Primrose.Wallace@timewarner.com

Marc Miller
Waggener Edstrom for Microsoft
Phone: +1/503-443-7000
E-Mail: marcm@wagged.com

Rapid Response Team
Waggener Edstrom
Phone: +1/503-443-7070
E-Mail: rrt@wagged.com

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