Vimio PLC
06 June 2006


                                                  To be embargoed until 7.00a.m.
                                                                  On 6 June 2006

                                   Vimio plc

                                   ("Vimio")

                Vimio agrees collaboration with Microsoft Corp.

Vimio plc, a provider and developer of live television, music and content for
mobile users, which listed on AIM in September 2005, announces a collaboration
agreement with Microsoft Corp. which will provide Vimio with the opportunity to
further develop Microsoft technology and licence certain products.

Key points:

   *Vimio to be provided access to Microsoft's multi-billion dollar research
    and development programme and research laboratories.


   *Agreement for Vimio to use Microsoft Video Optimization Technology which
    aims to provide enhanced performance of video on mobile devices.


   *Microsoft's IP Ventures Programme is designed to match Microsoft with
    companies who can refine and incorporate those innovations into their own
    products.


   *Vimio is one of the first companies to take advantage of the
    opportunities arising from Microsoft's IP Ventures Programme


   *Second Vimio partnership with a global leading multinational technology
    company, following recent agreement with Samsung Electronics.

Microsoft will today announce that, as part of its IP Ventures Programme, it has
selected Vimio plc to partner on projects with its research laboratory based in
Cambridge as well as license Microsoft's Mobile Video Optimization Technology.

Such partnerships allow Microsoft to open up internally developed technologies,
which have not yet been brought to market, to new businesses with the aim of
facilitating new product and business development. Given Vimio's experience in
providing media distribution and content solutions, the company is encouraged by
the opportunity that comes with working with one of the world's largest
developers of intellectual property.

The opportunity to licence Microsoft Mobile Video Optimization Technology, which
is designed to provide enhanced performance of video on mobile devices, will
enable Vimio to further fortify its offerings in the world of mobile media
distribution and content.

This is the second partnership Vimio has established with a leading
multinational technology company and Vimio believes it a further endorsement of
its standing in the marketplace.

Samsung Electronics are already embedding Vimio video and audio codecs in their
phones at point of manufacture with further rollout of these products expected
during the latter part of this year.

As advances in network and handset technology continue, together with increased
mobile phone penetration, the company believes opportunities for Vimio products
and technology will increase.

Note: A copy of Microsoft's release is included at the end of this statement.



Malachy Harkin, Chief Executive of Vimio, commented:

"To be recognised by Microsoft and chosen to licence an important mobile video
product is a great achievement for Vimio.

When coupled with Vimio's partnership with Samsung it provides a very strong
endorsement for our skills and products and which we believe will further
enhance our product name and offering."

Jean-Philippe Courtois, President of Microsoft International, commented:

"The new business relationship with Vimio will yield new innovations for the
European and the global markets"

5 June 2006
ENQUIRIES:

Vimio Plc                 +353 87 6980943
Padraic Marren
Pelham PR                 +44 207 743 6679/+44 780 2442 486
Archie Berens             +44 207 743 6677/+44 791 0104 660
Gavin Davis

NOTES:
About Vimio
VIMIO offers mobile operators and content providers an end-to-end solution for
mobile content distribution. This includes an advanced DRM (digital rights
management) system to prevent unauthorized copying of copyright protected
material. Live TV, full track music, video, karaoke, ring tones, true tones,
Java games, audio books and other mobile content can all be distributed with one
common distribution platform over CDMA, 2.5G, EDGE and 3G networks. For more
information, visit www.vimio.com.

European Businesses Strengthened by Microsoft Technology
Microsoft IP Ventures programme connects UK company Skinkers and Irish company
Vimio with Microsoft innovations to build technology businesses.

BRUSSELS, Belgium - 5 June 5 2006 - Today at its Small and Medium Enterprise
(SME) Innovation conference, Microsoft Corp will announce the first spinout of
technology from its Microsoft Research Cambridge lab to Skinkers, a London-based
start-up. Skinkers, a market leader in direct-to-desktop event notification and
content delivery solutions, is acquiring technology that will enable it to reach
more customers with faster and more reliable service. As a result of this
agreement, Microsoft will get an equity position in the company and an observer
seat on the board of directors. Microsoft will also announce an agreement with
Dublin-based Vimio plc, a leading developer of mobile media content and
distribution solutions, to license Microsoft(R) video optimisation technology to
fortify its offerings in the world of mobile media distribution and content
solutions.
These new relationships with innovative European companies mark the progress
that the Microsoft IP Ventures programme has made toward its goal of matching
innovations from its research labs with companies around the globe that can
refine and commercialise the technologies into their own products.
"Working with governments and venture capitalists to get our innovation
portfolio in the hands of entrepreneurs who can commercialise it is a win for
all parties," said Jean-Philippe Courtois, president of Microsoft International.
"The new business relationships with Skinkers and Vimio will yield new
innovations for the European and the global markets."
The Microsoft IP Ventures programme connects entrepreneurs with innovative
technologies developed as part of Microsoft's multibillion-dollar annual
investment in research and development. Through the programme, new companies and
economic development organisations gain access to Microsoft Research
technologies and, in alliance with investment firms, commercialise the
technology.
"The technology and the support available through the IP Ventures programme
provide an unparalleled opportunity for small and emerging businesses," said Jay
Patel, executive director of NewMedia SPARK, a venture capital investor
organisation based in London.
Currently more than 30 technologies are available for licensing through IP
Ventures, and several companies globally have collaborated with Microsoft to
license technology and launch new products in fields as diverse as predictive
traffic, digital photography and editing, collaborative agent technology, and
wireless communications.
Skinkers to Bring Collaborative Agent Technology to Market
Skinkers will acquire a collaborative agent technology developed by Microsoft
Research Cambridge as part of the agreement. Over the next year, Skinkers will
co-develop software with Microsoft that will benefit both companies and result
in a final product that Skinkers will take to market. Microsoft plans to
incorporate part of the final technology into its product line. Microsoft will
be a shareholder in Skinkers, and Andrew Herbert, managing director of the
Microsoft Research Cambridge lab, will join Skinkers' board in the capacity of
an observer.
"Microsoft's Cambridge Lab will be working closely with Skinkers in a venture
that will bring new innovative technology to the European market," Herbert said.
"The relationship with IP Ventures enables us to combine our leading
direct-to-desktop solutions with the latest collaborative agent content
distribution technology from Microsoft, creating exciting new commercial
opportunities," said Matteo Berlucchi, CEO of Skinkers.
Vimio Leveraging Microsoft Mobile Video Optimisation Technology
Also during the SME Innovation conference, Microsoft will announce that it has
closed a second transaction with Irish company Vimio through its ongoing
relationship with Enterprise Ireland.
"Microsoft's IP Ventures programme helps us in our continuing goal of assisting
Irish companies in achieving strong positions in global markets," said Brendan
Finucane, executive director of Technology, Automation & Productivity for
Enterprise Ireland. "We are pleased to have helped a second Irish company take
advantage of the opportunities this initiative offers."
Vimio will collaborate with the Microsoft Research lab in Cambridge and will
leverage technology from Microsoft that makes it possible to deliver video in
low-bandwidth environments with clearer shape, smoother motion and shorter
latency than alternative technologies on mobile devices. It delivers this
enhanced performance while requiring less computational resources than do
conventional video technologies.
"We are excited about the relationship we've developed with Microsoft through IP
Ventures," said Malachy Harkin, CEO of Vimio. "This initiative offers real
opportunities for European technology companies to leverage the innovative
technology developed by Microsoft to build and grow their businesses."

About Microsoft
Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software,
services and solutions that help people and businesses realise their full
potential.

About Microsoft EMEA (Europe, Middle East and Africa)
Microsoft has operated in EMEA since 1982. In the region Microsoft employs more
than 12,000 people in 60 subsidiaries, delivering products and services in 138
countries and territories.

This material is for informational purposes only. Microsoft Corp disclaims all
warranties and conditions with regard to use of the material for other purposes.
Microsoft Corp shall not, at any time, be liable for any special, direct,
indirect or consequential damages, whether in an action of contract, negligence
or other action arising out of or in connection with the use or performance of
the material. Nothing herein should be construed as constituting any kind of
warranty.
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.

Microsoft PR Contacts
Tricia Payer, Waggener Edstrom Worldwide
Phone: +1 (425) 638-7000
E-mail: triciap@waggeneredstrom.com

Microsoft EMEA Response Centre
Phone: +44 870 243 0515
E-mail: emearesponse@waggeneredstrom.com

Note to editors
If you are interested in viewing additional information on Microsoft in EMEA,
please visit http://www.microsoft.com/emea or the EMEA Press Centre at http://
www.microsoft.com/emea/presscentre. Web links, telephone numbers and titles were
correct at the time of publication, but may since have changed. For additional
assistance, journalists and analysts may contact the Microsoft EMEA Press Office
at +44 870 243 0515 or other appropriate contacts listed at http://
www.microsoft.com/emea/contactus.
If you are interested in viewing additional information on Microsoft Corp,
please visit the Microsoft web page at http://www.microsoft.com/presspass on
Microsoft's corporate information pages.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
NRAGGGGVNKKGVZM