Sonic Foundry and AMP3.COM Form Strategic Marketing Partnership

Sonic Foundry (Nasdaq: SOFO), a leading developer and marketer of media authoring tools and digital audio software for Windows[R], announced today that it has formed a strategic marketing partnership with AMP3.COM, the Internet's newest and fastest-growing MP3 Web site.

The two companies plan to work together on several fronts and will officially kick off their new partnership when AMP3.COM includes Sonic Foundry's ACID Style music creation software on a CD to be distributed at the Woodstock Music and Art Fair (Woodstock '99), July 23 - 25 in Rome, New York. Along with the ACID Style application, the CD will also feature both songs and software from a number of prominent companies, including AMP3.COM, MusicMatch, Creative Labs, Peavey, Carvin, FortuneCity.com, CDBaby.com, and more.

"We are very pleased to be in partnership with AMP3.COM because its site is one of the hottest new MP3 resources on the Web," said Roy Elkins, Sonic Foundry's Vice President of Sales and Marketing. "With ACID Style and the other tools found on the CD distributed at Woodstock, PC-based musicians will now have one-stop access to everything they need to create, edit, and deliver music over the Internet."

"We are delighted to be working with Sonic Foundry and its team of developers who are clearly on the cutting edge of the technology required for creating, editing, and delivering digital music," said Bob Welch, Director of Sales & Marketing for AMP3.COM. "We chose to include ACID Style on the CD we'll distribute at Woodstock '99 because it's an advanced package that makes creating digital music incredibly easy. It's quite possible that ACID Style could end up being the tool used by some aspiring musician to win the $1 million prize and recording contract that we will award to the AMP3.COM 'Artist of the Year' on December 13th."

Sonic Foundry's ACID Style, the entry level program in the ACID family, is a powerful, yet easy-to-use music creation package that brings unprecedented creative flexibility to loop arranging and editing. With a simple click-and-drag, users can combine and mix loops and make real-time changes to pitch and tempo to create the perfect mix. ACID PRO, the complete, professional edition in the ACID family, includes unlimited tracks, volume, pan, and effects control for each track, support for multiple real-time DirectX effects, and easy access to Sonic Foundry's Sound Forge application and other audio editors.

AMP3.COM is committed to featuring start-up musicians alongside industry names, and has successfully delivered more than 370,000 downloads since launching its site just a few months ago. What distinguishes it from other MP3 sites is its outspokenly cooperative stance toward the recording industry's efforts to devise a standard for the MP3 technology. It will better protect copyrighted music, and all of the more than 3,000 artists on the site will get paid for every song downloaded.

About AMP3.com

AMP3.COM is a privately held company based in Kingwood, Texas. As a pioneer in the arena of digital music distribution over the Internet, AMP3.COM is poised to become one of the premier music destinations on the Web. AMP3.COM's progressive vision, selection of music, artistic relationships, strategic alliances, and leading-edge technology contribute to superior music content for the end user. The company's Web site is www.amp3.com.