Sonic Foundry Announces Bundling Partnership With Pinnacle Systems

Sonic Foundry[R], Inc. (NASDAQ: SOFO), the leading developer and marketer of digital media and Internet software tools, services, and systems, today announced that its Stream Anywhere[TM] LE and ACID[TM] Style software products are bundled with Pinnacles' Targa 3100, DVD2000, and other high-end offerings.

"We are excited to enhance our ongoing relationship with Sonic Foundry by providing a robust solution to our customers," stated Jeff Medeiros at Pinnacle Systems, Inc. "By integrating Sonic Foundry's high-quality software products into our powerful hardware systems, customers will now have all the tools necessary for digital video and audio at a very affordable price."

Stream Anywhere LE provides Pinnacle users an all-in-one software solution for developing high-impact streaming media for the Internet for the casual and professional web developer or video producer. The product offers the ability to re-purpose video files utilizing proprietary tools that prepare content for optimum playback in a streaming video format. Stream Anywhere LE encodes to Windows Media and RealSystem G2 formats for easy integration into any web site.

Sonic Foundry's ACID Style combined with Pinnacle's products, offer media producers a solution for creating original, royalty-free music quickly and easily for their video production. Users create music in any style with its multi-genre loop library. Music is created with a pick, paint, and play interface, complex sequencers, or musical instruments.

"Pinnacle Systems hardware, combined with Sonic Foundry's state-of-the-art software, will prove to be a very valuable combination to those who want the best in cutting-edge web content," stated Jeff Conover, vice president of marketing for Sonic Foundry. "The goal of our relationship is to offer one-of-kind integrated solutions and this bundling partnership accomplishes that task."

About TARGA 3100 and DVD2000

The TARGA 3000 is Pinnacle Systems' most powerful desktop editing and compositing solution. TARGA 3000 provides impeccable quality including true uncompressed video processing, multi-layer compositing, flexible compression formats and unmatched effects power. TARGA 3000 offers a complete range of analog and digital I/O provided by the TARGA 3000 family of breakout boxes.

The DVD2000 is complete videotape, CD-ROM, DVD, and Internet video delivery solution. It combines frame accurate dual stream MPEG-2 video editing and DVD authoring. DVD2000 encodes directly in the DVD format and can edit or immediately author this video. It bundles Adobe Premiere and Minerva Impression 2.0 DVD authoring software.

About Pinnacle Systems

Pinnacle Systems' broadcast, desktop, and consumer products provide video professionals and consumers cutting-edge digital video tools to create, store, distribute and view Web enabled digital video easier 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