Sonic Foundry and Eveo Partner to Provide Enhanced Video Creation Capabilities

Sonic Foundry, Inc. (Nasdaq: SOFO), the leading developer and marketer of digital media and Internet software tools, services, and systems, today announced a promotional partnership with Eveo to provide copies of its ACID[TM] XPress software to users that register at www.eveo.com. ACID XPress will be distributed both in CD-ROM and downloadable software formats to enable users to create compelling and innovative music that can be used in conjunction with video creations. Registered Eveo users will have access to a library of over 400 music loops that work in conjunction with the ACID XPress software.

"This relationship is very consistent with Eveo's mission of democratizing entertainment and empowering even more people to author and produce 'eveos'—brief (3-minute), original videos—and experiment with rich media," said Eveo Founder and CEO Olivier Zitoun. "Music is a key issue for filmmakers; now anyone can create cool music for a video soundtrack in minutes on Eveo.com."

"The user-generated, rich media content market is growing rapidly, and Eveo is emerging as a pioneer in the streaming media and broadband arena," said Jeff Conover, vice president of marketing for Sonic Foundry. "We are excited that our tools will assist the next generation of talented videomakers in creating ground-breaking music in conjunction with their original video content."

About Eveo, Inc.

Eveo is a privately held digital entertainment company creating a revolutionary Web destination, empowering users to produce and premiere original short digital videos. A new showcase and resource center for creative videos, Eveo was founded by Olivier Zitoun in summer of 1999.

Eveo is democraticizing entertainment, making desktop video production easy, affordable, and accessible. The leader in consumer-created videos, Eveo establishes and fosters relationships with video makers through its unique compensation and revenue sharing program, "Earn-Per-View[TM]", the Internet's first ongoing, revenue-sharing program for video makers. Eveo's producers and directors are rewarded with visibility, free broadcast on Eveo's site, and free distribution on other major portals as well as on offline television and DVD distribution deals. Eveo's executive team is comprised of experienced entertainment and information technology professionals from the fields of television, film, advertising, and telecommunications. Investors include Media Technology Ventures, a broadband and convergence-focused venture capital fund committed to investing in entrepreneurs building the next generation of industry-leading companies. Other investors include Mission Ventures, THOMSON multimedia, Greenstone Ventures, Sonera Corporation, GIMV, and i-cubate, Limited. Eveo's strategic partners include INTERVU, Loudeye, ARTISTdirect, and Razorfish. The company is headquartered in San Francisco.