New Distribution for Sonic Foundry Products in Germany

DELFT, NETHERLANDS — Sonic Foundry (Nasdaq: SOFO), a leading developer and publisher of digital media software, today announced that the Berlin company Sound Service GmbH has immediately assumed the distribution of its software products for Germany and Austria in the MI, Studio, Broadcast, and DJ distribution channels.

Since its beginning in 1991, Sonic Foundry has made an excellent name for itself in the development of digital audio software for the Windows platform. Its close relationships with industry leaders like Microsoft, Hewlett Packard, Creative Labs, Smart & Friendly, Macromedia, and RealNetworks have strengthened the Company's presence in the Internet, music, multimedia, digital video, and broadcast arenas.

Besides well-established products such as Sound Forge, ACID, Soft Encode, and CD Architect, Vegas Pro, a new multitrack media editing system, has recently been released, and it has already received a lot of attention. It features an intuitive interface, the ability to process multiple audio formats within a single track, a maximum resolution of 24-bit and 96 kHz, 32
DirectX effect sends, and 26 master - or AUX - sends. The retail price is approximately DM 999.

All of Sonic Foundry's new product offerings will be localized, increasing their usability for customers in Germany and worldwide. In addition, the retail prices of Sound Forge, ACID, and CD Architect have been lowered to a new price within Germany.

For more information on Sound Service GmbH, visit the company's Web site at www.soundservice.de or send an e-mail to information@soundservice.de.