SONICblue Strengthens Management Team.

Business Editors

SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 7, 2003

Richard Burns Hired as VP of Sales; Jim Hollingsworth Appointed VP of

Marketing And Head of Connected Product Group; Pankaj Shah Appointed VP of Advanced Technologies; Steven Schlief Hired as VP of Operations

SONICblue(TM) Incorporated (Nasdaq:SBLU) today announced changes designed to strengthen SONICblue's management team and intensify the Company's sales and marketing efforts. Richard Burns, an experienced senior manager, will re-join the Company as vice president of sales; and Jim Hollingsworth, currently vice president of marketing, will expand his role by assuming control of the Connected Product Group, which includes the company's ReplayTV(R) product line. Additionally, Pankaj Shah, currently director of engineering, has accepted a position as vice president of advanced technologies and Steven Schlief was hired as vice president of operations.

Greg Ballard, CEO, said these changes are designed to increase SONICblue's focus on sales and marketing and to ensure the Company is on the forefront of digital technology.

Burns joins the Company from Vialta, Inc. where he served as vice president of sales, responsible for building the company's sales organization and distribution network. He will report directly to Greg Ballard.

Prior to Vialta, Burns was senior vice president of sales, SONICblue, where he was responsible for worldwide sales of the Company's consumer electronics product lines.

Prior to SONICblue, Burns was senior vice president of sales with 3dfx where he launched the Voodoo Graphics 3D accelerator line, attaining the Number One market share against established competitors with the top three graphics products at retail.

Before joining 3dfx, Burns accumulated a wealth of consumer electronics and entertainment sales experience in senior sales management positions at numerous companies including Sony Corporation of America where he developed and implemented sales and distribution strategies for 18 different consumer electronic product lines producing $680 million in annual sales and Sega of America, Inc., where he directed all sales and merchandising activities for a line of videogame products growing sales from $250 million to over $1 billion in just three years.

With SONICblue since the Company's acquisition of ReplayTV, Hollingsworth previously served as the Company's vice president of sales and marketing. He will now focus on marketing as well as managing the Connected Products Group and will continue to report to Ballard.

While with ReplayTV, Hollingsworth served as senior vice president of business development. Prior to joining ReplayTV, Hollingsworth was senior vice president of marketing for consumer products with NEC Computers.

Before NEC Computers, Hollingsworth spent 12 years at Sony, where he headed the multimedia products group as vice president of marketing, managing Sony's Trinitron computer display business and launching Digital Mavica products to the U.S. market.

"With Jim's decision to accept my offer that he head the Connected Products group in addition to his corporate marketing duties, we needed an experienced professional to assume his sales responsibilities," Ballard explained. "Because Richard and I worked together successfully at 3dfx, I know how powerful the combination can be and believe Richard's talent and experience are a perfect fit for the company. Jim's versatility as an executive allowed us to refocus and strengthen our management team. We can now more effectively communicate and deliver on our vision of connecting people with entertainment."

In his new role as vice president of advanced technologies, Shah, who joined SONICblue through the Company's acquisition of ReplayTV, will work directly with SONICblue's product and engineering teams to identify the key issues and technologies the Company needs to embrace to create offerings that continue to place SONICblue on the leading edge of digital entertainment. Shah will also report to Ballard.

Prior to accepting his position as VP of advanced technologies, Shah served SONICblue as director of engineering and was responsible for managing the design and development of the hardware for the ReplayTV 5000 Series products and acted as the systems architect responsible for enhancing the inter-operability between SONICblue's various products.

Prior to ReplayTV, Shah was a research and design project manager with Hewlett Packard (HP) for 15-years.

With over 20 years of experience in supply chain and operations management, Schlief joined SONICblue as vice president of operations, reporting to Jeff Hastings, Vice President of Engineering, Operations and Customer Service.

Prior to joining SONICblue, Schlief was with 2Wire Inc., where he led a team of operations and supply chain professionals in managing all operational aspects of the company's business.

"With the addition of Pankaj and Steve to our executive roster, SONICblue has the talent it needs to maintain its position at the forefront of digital entertainment," said Ballard. "Pankaj has the necessary technical knowledge to aid the Company in taking advantage of advances in digital technology and Steve has the know-how to work to keep our operations running smoothly."

About SONICblue Incorporated (www.SONICblue.com)

SONICblue is a leader in the converging Internet, digital media, entertainment and consumer electronics markets. Working with partners that include some of the biggest brands in consumer electronics, SONICblue creates and markets products that let consumers enjoy all the benefits of a digital home and connected lifestyle. SONICblue holds a focused technology portfolio that includes Rio(R) digital audio players; ReplayTV(R) personal television technology and software solutions; GoVideo(R) Dual-Deck(TM) VCRs and integrated DVD+VCRs and home entertainment theater components.

Except for the historical information contained herein, the matters set forth in this press release, including statements as to the Company's ability to remain on the forefront of digital technology, its ability to create products that place it at the leading edge of digital entertainment, its ability take advantage of demand for its products and its ability to connect people with entertainment and expectations that management changes will improve management or operations or will ensure that the Company take advantage of advances in digital technology, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risk and uncertainties that could cause actual results to differ materially, including, but not limited to, the Company's ability to implement its business plan, the impact of competitive products and pricing and of alternative technological advances, manufacturing difficulties, fluctuations in consumer demand due to economic developments and uncertainties, and other risks detailed from time to time in the SEC reports of SONICblue Incorporated, including its annual report on Form 10-K for the period ended December 31, 2001. These forward-looking statements speak only as of the date hereof. SONICblue disclaims any obligation to update these forward-looking statements.

SONICblue and Dual-Deck and ReplayTV, GoVideo and Rio are registered trademarks of SONICblue Incorporated. All other products and brand names as they appear in this release are trademarks or registered trademarks of their respective holders.