Sonic Foundry and RealNetworks Agree to Provide Audio Solution Bundle

Sonic Foundry[R], Inc. (NASDAQ: SOFO), the leading developer and marketer of digital media and Internet software tools, services, and systems, today announced its award-winning Sound Forge[TM] XP 4.5 digital audio editor is available for sale on the RealNetworks[R] Web site at www.realnetworks.com.

Sound Forge XP 4.5, a streamlined version of the award-winning Sound Forge 4.5, is available as a stand-alone product, offering consumers a powerful audio processing tool to create high-quality audio for multimedia content. The product is also available with RealNetworks' RealAudio[R] Creation Kit that provides consumers with Sound Forge XP 4.5, RealProducer Plus[R], and RealSlideshow[TM] Plus. The suite of streaming audio tools allows customers to capture, edit and prepare streaming RealAudio for their web site.

"We're pleased to offer Sound Forge XP 4.5 to our millions of customers that have purchased or downloaded content authoring products for RealSystem," said Ian McKerlich, product manager of Media System Tools for RealNetworks. "Sound Forge is one of the three great products in the RealAudio Creation Kit—a bundle of leading streaming media tools that allow customers to
capture, edit and prepare streaming RealAudio for their Web site."

"Sonic Foundry is excited to provide the RealNetworks audience with our Sound Forge XP 4.5," stated Jeff Conover, vice president of marketing for Sonic Foundry. "This offering gives the users of RealSystem a powerful digital audio editing tool resulting in high-quality streaming content."

About Sound Forge XP 4.5

Sound Forge XP 4.5 is a streamlined version of the award-winning professional digital audio editor, Sound Forge 4.5. The software is equipped with over 25 professional-quality digital audio effects and processes and is compatible with ExpressFX[TM] 1 DirectX Plug-Ins and ExpressFX 2 DirectX Plug-Ins (purchased separately). Sound Forge XP 4.5 allows encoding to RealAudio and RealVideo[R], Windows Media[R], MP3, and other popular formats.