ADVISORY/As Rich Media Volume Grows, Entertainment Companies Need a More Gradual, Practical Approach to Managing Their Digital Assets.

Business Editors & Technology Writers

NAB 2002

ADVISORY...for Saturday (April 6)

--(BUSINESS WIRE)

    Sonic Foundry outlines real-world approach for entertainment,
government and corporate customers looking to tame the `digital beast'

WHO:        Sonic Foundry, Inc. (Nasdaq:SOFO)
            Rimas Buinevicius, Chairman & CEO, rich media expert

WHAT:       With roots forged in recording studios and the largest
            entertainment companies in the industry, Sonic Foundry has
            watched as "content management" companies rushed to offer
            "end-to-end" solutions that have been extremely expensive
            and failed to meet stated expectations. Failing to respect
            the legacy of many large organizations that now face an
            avalanche of digital data, many technology providers have
            pushed a utopian approach for managing electronic media
            that calls for an all-or-nothing strategy. Similar to the
            commitment needed to implement a corporate ERP system,
            this unproven approach has many organizations looking for
            a more prudent, phased-in process for leveraging the value
            of their electronic media.

            "We believe that the lessons learned within the media and
            entertainment industries demonstrate the need to pause,
            take stock of what really works and what doesn't, and to
            establish a careful migration path that leads to the
            ultimate goal of easily managing, retrieving and
            re-purposing digital content throughout the enterprise,"
            says Rimas Buinevicius, chairman and CEO of Sonic Foundry.
            "The entertainment industry is the bellwether of the
            digital data landscape, and other organizations should
            follow its lead in converting, indexing and distributing
            digital assets for greater accessibility and
            profitability."

            Buinevicius sees three successful trends within the
            entertainment industry:

            1) Continue to maintain current data management systems
            before embarking on a total overhaul of the technologies
            used to create, deliver and store digital media.

            2) Start using more advanced technologies on short-form,
            less data-intensive projects -- such as brief trailers and
            promotions for the movie industry.

            3) Look for ways to transform digital content into
            high-value "rich media" content -- by having the ability
            to easily and quickly retrieve and re-use data for
            multiple applications.

            Sonic Foundry has set the standard for audio and video
            production and content management through the development
            of such products as Sound Forge(R), ACID(TM) and Vegas(R)
            Video. All of these products help create, deliver and
            manage world-class rich media content. With its heritage
            of enabling entertainment companies to leverage the full
            potential of their digital assets, Sonic Foundry is using
            its extensive experience to help customers develop a
            "digital roadmap" that becomes the core strategy for its
            rich media initiatives.

            Executives are available for individual briefings and/or
            demonstrations prior to or at the up-coming National
            Association of Broadcasters (NAB) conference and trade
            show in Las Vegas, April 6-11, 2002. In addition, the
            company will be offering a white paper outlining these
            trends, its strategy and industry findings in more detail.
            Copies can be obtained at Sonic Foundry's Booth #S6737 at
            NAB, located in the Sands Expo Center, or by contacting
            Terri Douglas or Guy Murrel, Catapult PR-IR at the contact
            information below.

 CONTACT    For more information about Sonic Foundry's suggested
 & INFO:    approach to rich media management and to schedule an
            interview with Sonic Foundry, contact:

            Terri Douglas or Guy Murrel
            Catapult PR-IR
            303/581-7760, ext. 18
            or [e-mail]