Sonic Foundry and Sony Pictures Digital Entertainment Team to Provide Live Webcasting Event

Sonic Foundry[R] Inc. (NASDAQ: SOFO), the leading developer and marketer of digital media and Internet software tools, services, and systems, today announced that it has provided SoapCity.com, a division of Sony Pictures Digital Entertainment, with its state-of-the-art live Webcasting technologies. The Company captured the 7000th episode party of the Emmy-winning Young and the Restless soap opera after the filming and encoded the content into a high-resolution streaming format for distribution on its Web site at www.soapcity.com. The live streaming event was filmed at CBS studios in Los Angeles, Calif., on September 28, 2000.

"This was a very exciting event for Sony Pictures Digital Entertainment," stated Mary Coller, vice president and general manager of SoapCity. "Sonic Foundry was able to provide SoapCity.com with the necessary technologies to ensure all of the Young and Restless fans were able see this amazing event live and online. Sonic Foundry has continued to provide us with emerging technological opportunities to continue our goal as the ultimate online destination for Daytime Drama."

"Sonic Foundry is very pleased with our continued collaborative efforts with Sony Pictures Digital Entertainment. The live webcasting of the 7000th episode of Young and the Restless provided all parties involved with another step forward in our efforts to provide new entertainment forums," stated Rimas P. Buinevicius, chairman and chief executive officer for Sonic Foundry.

About SoapCity

SoapCity, located at www.soapcity.com is Sony Pictures Digital Entertainment's premiere soap opera destination. The site provides extensive coverage, updated daily, for daytime dramas and hosts the official sites for top soaps The Young and The Restless and Days of Our Lives. SoapCity is driven by a fan-based community eager to connect with their favorite shows. With live Webcasts, weekly celebrity chats, fashion and style reviews, up-to-the-minute news, and its e-commerce destination, The SoapCity Store, SoapCity has emerged as the number one Soap Opera entertainment hub.