Sonic Foundry and Pinnacle Systems Form Strategic Partnership

Sonic Foundry (AMEX: SFO), a leading developer and marketer of digital audio software for the Windows[R] platform, announced today that it has formed a strategic partnership with Pinnacle Systems. Through this new partnership, Pinnacle will now include a copy of Sonic Foundry's ACID Music software with its miroVIDEO DC30pro, DC ProPak, miroVIDEO DC 50, and ReelTime products. ACID Music is a powerful yet user-friendly software package that allows PC users to easily create a broad assortment of professional-sounding music.

"By combining ACID Music with its advanced video editing solutions, Pinnacle Systems is now in a position to provide even greater value to its customers," said Roy Elkins, Vice President of Sales and Marketing for Sonic Foundry. "We are very pleased to be in partnership with an acknowledged industry leader like Pinnacle Systems."

"We chose to bundle ACID Music because it enables Pinnacle customers to easily add unique musical scores to the videos they produce using our digital video editing solutions," said M3 Sweatt, Director of Desktop Products at Pinnacle Systems. "We expect that ACID Music's extensive selection of music loops will provide our customers with the ability to significantly broaden their creative possibilities."

With ACID Music, it's exceptionally simple for PC users to create truly unique musical selections. Users select the loops they want to include, 'click-and-drag' to arrange them into tracks, and then play back the assembled song. To ensure that professional-quality sound is achieved, ACID Music even synchronizes the tempo and key of each loop in a song, regardless of the loop's original speed or pitch.

ACID Music includes a built-in library with hundreds of license-free loops in a vast array of instruments, including percussion, guitar, horns, synth, and more, and with a wide variety of musical styles such as rock, jazz, pop, dance, techno, funk, and hip-hop. Moreover, with the software's comprehensive onboard digital studio, users can even mix and match loops to create recordings with an unlimited number of tracks. ACID Music also allows users to easily add their own instruments or vocals to their music creations or to sing along by simply plugging a microphone into their PC sound card.

Pinnacle Systems' miroVIDEO DC30pro is an innovative new digital video editing product for Windows 95/98 and Windows NT that includes Pinnacle's powerful TitleDeko character generator plug-in for Adobe Premiere 5.1. The Pinnacle DC ProPak is a special bundle for current DC30 family customers that includes a high quality breakout box along with the ACID Music software. Pinnacle's miroVIDEO DC50 is a professional nonlinear video and audio editing solution for Windows that enables broadcast quality production at an affordable price, while ReelTime is a real-time, full screen, full motion dual stream editing system for Windows NT.

About Pinnacle Systems, Inc.

Pinnacle Systems' broadcast, desktop, and consumer products provide video professionals and consumers the sophisticated tools needed to create dazzling video programs faster and more affordably than ever before. Pinnacle Systems may be reached at (650) 526-1600 or on the World Wide Web at www.pinnaclesys.com.