Sonic Foundry and Pix

Sonic Foundry[R] Inc. (NASDAQ: SOFO), the leading developer and marketer of digital media and Internet software tools, services, and systems, today announced an agreement with Pixélan Software[TM], the leader in custom 2D effects for nonlinear video editing, to produce co-branded visual effects plug-ins for Vegas[R] Video, Sonic Foundry's award-winning audio and video editor. Pixélan Software is well known worldwide for its popular SpiceMaster[TM] plug-in software that offers unprecedented new ways to customize and control 2D transitions and filters and effects.

Under terms of the agreement, the companies will co-brand Vegas[R] SpiceMaster, which allows Vegas users to enjoy SpiceMaster's creative power with the unique real-time previewing of Vegas Video and more than 500 customizable transitions and filter effects. Vegas SpiceMaster provides users with completely customizable transitions, from soft and subtle to organic and cutting edge, plus the ability to dynamically flow any video filter effect within a single clip. Users can keyframe position, orientation, softness, range, movement, border, glow, shadow, and speed.

Pixélan will also debut their innovative and creative SpiceFilters[TM] Volume I for Vegas Video. This suite of video effects filters includes ChromaWarp[TM], StepTime[TM], StepMotion[TM], FlowTexture[TM], and NewNoise[TM]. The software combination provides increased user speed and workflow.

"This relationship is very exciting for us," stated Jeff Conover, vice president of marketing for Sonic Foundry. "Pixélan has been known in the 2D market as a leader in new and creative effects. This will provide Vegas Video users with additional tools, providing them with a new and flexible video and audio editing platform."

"We are delighted to partner with Sonic Foundry in this initiative," said Michael Feerer, president of Pixélan Software. "SpiceMaster and our five video filters in Volume I fulfill important visual needs for creative productions in Vegas Video. The real-time previewing and keyframing controls allow users to quickly apply and adjust the filters interactively."

About Pixélan Software

Pixélan Software is a privately held company in Bellingham, Washington, that specializes in creating visual effects software for the dynamic media marketplace. Its goal is to create elegant, studio-quality alternatives to standard visual effects. In early 1997, Pixélan released Video SpiceRack, which received unanimous top-rated reviews and led to a family of popular add-on products that now includes Video SpiceRack PRO and OrganicFX. Pixélan spices are now used by more than 150,000 videographers worldwide in corporate, broadcast, multimedia, and web productions. For further details and product descriptions, please visit www.pixelan.com.