Sonic Foundry and Ligos Technology Enter into a Strategic Alliance to Distribute MPEG Solution

Sonic Foundry[R] Inc. (NASDAQ: SOFO), the leading developer and marketer of digital media and Internet software tools, services, and systems, today announced a strategic alliance with Ligos[R] Technology, a leading developer of software-based media stream management solutions. Sonic Foundry will include Ligos' GoMotion[R] MPEG-1 and MPEG-2 transcoding and decoding technology with Sonic Foundry's Vegas[R] Video and VideoFactory[TM] state-of-the-art audio and video software.

Sonic Foundry has incorporated Ligos' GoMotion MPEG compression technology into its professional and consumer-based video software products to provide customers with the ability to open and save MPEG files. GoMotion MPEG technology allows any standard PC to save digital video and sound into a compressed format, decreasing bandwidth and eliminating the need for additional compression hardware. MPEG-2 is the de facto standard in the digital TV industry due to its high quality picture, scalability, and interlaced video resources.

"Our award-winning MPEG codec, teamed with Sonic Foundry's high-quality video products, combine powerful and proven technology. We are very pleased to provide the world's leading MPEG technology for popular Sonic Foundry products," said Peter Forman, Ligos president and CEO.

"Our alliance with Ligos enables our customers to produce the highest quality video in the industry," stated Jeff Conover, vice president of marketing for Sonic Foundry. "MPEG support is essential in the video market, and we wanted to provide an MPEG software encoding solution from a market leader, and Ligos meets that criteria."

GoMotion was first introduced in 1998 and has since become the most fully implemented MPEG-2 software encoding solution for the PC. Offering easier application integration, more flexibility, and higher quality, GoMotion is the industry standard for software-based MPEG encoding. Ligos' GoMotion video compression software already enables top-selling desktop PC video products from AIST, ATI, Avid, 3dfx, CSK Research, Dazzle, DPS, Guillemot, ICTV, Matrox, MGI, Pinnacle, Sonic Foundry, Sonic Solutions, and Ulead.

About Ligos Corporation

Headquartered in San Francisco, Ligos Technology is a leading worldwide provider of real-time software-only media stream management technology. Founded in 1997, Ligos developed the GoMotion codec, which has the ability to compress high-quality MPEG-2 video in real time, using software only, on a Pentium-based PC. GoMotion offers Ligos customers the distinct advantages of speed and affordability, when compared to more expensive hardware-based MPEG solutions. For more information on Ligos Technology, its products, or licensing, access its Web site at www.ligos.com or call (888) 464-8765.

Ligos and GoMotion are registered trademarks of Ligos Corporation. All other trademarks, product names, and/or trade names are used solely for the purpose of identification and belong to their respective holders.