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New Portable Media Centers Likely to Be Warmly Received

New Research from The Diffusion Group Suggests that Consumers Will Embrace the PMC's if the Price is Right

Dallas, TX July 15, 2004 -- On the cusp of Microsoft's announcement that the company's new Portable Media Centers can now be preordered for August 2004 distribution, a new report by The Diffusion Group finds that more than 40% of Internet households are interested in purchasing the device. TDG's latest Consumer Snapshot, Consumer Interest in Portable Media Centers, also found that almost 10% of Internet households will "definitely purchase" a PMC, the new line of portable devices for listening to music and viewing video content.

"The very fact that almost one-half of Internet households in general, and two-thirds of broadband households in particular, are interested in purchased a PMC speaks well of the early demand for these solutions," says Michael Greeson, President and Principal Analyst for The Diffusion Group. "Microsoft has been working since early 2003 to get the PMC software and reference design ready for market, a delay which has given Apple's iPod an early lead as the de facto standard in personal media players. However, while the iPod only allows users to listen to digital music, the PMC supports both digital music and video. Microsoft and its hardware partners (including Creative Labs and Samsung) are hoping to leverage the PMC's expanded functionality to take a bite out of Apple's market share."

TDG's new report, Consumer Interest in Portable Media Centers, offers a detailed analysis of those consumers most likely to PMC's, as well as insight into how various prices impact PMC demand. Additionally, the report offers a consumer segmentation model that device vendors and resellers can put to immediate use in developing PMC marketing strategies. The report will be available in late July and is available for pre-order on TDG's website (www.tdgresearch.com) for only $995.

About The Diffusion Group
The Diffusion Group is a "think tank" of consumer technology analysts charged with providing timely, actionable intelligence designed to best position new consumer technologies for rapid diffusion. TDG is committed to providing market research and strategic consulting services based on conservative, real-world analysis and market forecasts grounded in consumer research. For more information about The Diffusion Group, visit our website at www.tdgresearch.com .