ADVISORY/Sonic Foundry to Webcast and Offer On-Demand Viewing of Annual Shareholder Meeting.

Business Editors/Assignment Desks

ADVISORY...Tuesday (July 29)

--(BUSINESS WIRE)

Company Will Use Its Mediasite Live Web Communications System 

to Reach Investors Who Can't Attend

WHO:    Rimas Buinevicius, chairman and CEO of Sonic Foundry, Inc.
        (Nasdaq:SOFO), along with the company's Board of Directors and
        executives, will lead the company's annual shareholder meeting
        on Tuesday, July 29, at 9:00 a.m. CDT.

WHAT:   Sonic Foundry's Board of Directors is seeking shareholder
        approval on several proposals up for voting at this year's
        meeting (see release dated July 23, 2003, for more details),
        including:

        --   The Amended and Restated Asset Purchase Agreement by and
        between Sony Pictures Digital and Sonic Foundry for the sale
        of its desktop software business;

        --   A reverse stock split, which the company would exercise,
        if necessary, to ensure it can move quickly in the future to
        maintain its NASDAQ listing per the stated $1 per share
        listing requirement;

        --   The election of one outside director; and,

        --   Ratification of the appointment of Ernst & Young as
        company auditors.

        The company is webcasting the meeting live and posting it for
        on-demand viewing via its Mediasite Live(TM) Web
        communications system.

        To view the webcast live and on-demand, visit:
      http://mslive.sonicfoundry.com/ShareholdersMeeting2003/index.asp

WHEN:   Tuesday, July 29, 2003, 9:00 a.m. CDT
        Monona Terrace Community and Convention Center
        Madison, Wis.
        608-261-4000

CONTACT:  For more information, or to schedule an interview with Rimas
          Buinevicius, contact:
          Terri Douglas, Catapult PR-IR
          303/581-7760, ext. 18
          [e-mail]