Sonic Solutions and Microsoft Announce Licensing Agreement On DVD-Authoring Technology

REDMOND, Wash., and MARIN COUNTY, Calif., Jan. 9, 2002 — Microsoft Corp. and Sonic Solutions today announced that Microsoft has licensed Sonic’s DVD-Video-authoring technology. Under the terms of the multiyear agreement, Sonic will provide core technology and development expertise to Microsoft. The companies will also cooperate in a number of ways in marketing, customer education and standards development for their DVD-related products.

This agreement will cover technologies that Sonic has developed, including Sonic AuthorScript®
, the underlying technology behind Sonic’s award-winning DVD-authoring applications that has become the Hollywood standard to create DVD titles which provide the ultimate in performance and player compatibility.

“We’re delighted that Microsoft has chosen Sonic DVD technology,” said Bob Doris, president of Sonic Solutions. “The features of Sonic AuthorScript will create new opportunities for Microsoft customers in the future.”

Introduced in 1997, DVD-Video is the most successful new consumer entertainment format ever, surpassing by a wide margin the adoption rates of the audio compact disc and VCR. By the end of 2002, more than 50 percent of all U.S. homes will have DVD players or DVD PCs, according to Adams Media Research.

About Sonic Solutions

Based in Marin County, Calif., Sonic (Nasdaq “SNIC”) ( http://www.sonic.com/ ) is the world’s leading manufacturer of solutions for DVD creation. Sonic DVD Creator® , Sonic Scenarist® , Sonic ReelDVD (TM) and Sonic DVD Fusion® are the most widely used systems for professional DVD publishing, and are installed worldwide at major studios, post-production facilities and corporate marketing departments. Sonic DVDit!®
( http://www.dvdit.com/ ) is the leading DVD-authoring application for videographers and corporate video producers; more than 1 million copies of DVDit! have been sold. Sonic MyDVD (TM) ( http://www.mydvd3.com/ ) is the first DVD-authoring application for consumers and is the leading DVD solution among DVD recorder and PC manufacturers. Sonic is a full voting member of the DVD Forum, the standards-setting body for the DVD format.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software — any time, any place and on any device.

Microsoft is a registered trademark of Microsoft Corp. in the United States and/or other countries.

Sonic Solutions, the Sonic logo, AuthorScript, MyDVD, ReelDVD, DVD Creator, DVD Fusion, DVDit! and Scenarist are either registered trademarks or trademarks of Sonic Solutions.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

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