Sonic Foundry Announces Completion of One-for-Ten Reverse Stock Split on NASDAQ

MADISON, Wis. - November 17, 2009 - Sonic Foundry, Inc. (NASDAQ: SOFO) today announced that its previously reported one-for-ten reverse stock split of the Company's common stock was completed effective 6:01 p.m. ET on November 16, 2009. Trading of Sonic Foundry's common stock on the NASDAQ Capital Market will begin on a split-adjusted basis at the open of trading today, November 17, 2009.

Sonic Foundry's shares will continue to trade on the NASDAQ Capital Market under the symbol "SOFO", with the letter "D" added to the end of the trading symbol for a period of 20 trading days to indicate the reverse stock split has occurred. The Company's symbol will revert back to its original symbol "SOFO" on December 15, 2009.

As a result of the reverse stock split, every ten shares of Sonic Foundry's common stock issued and outstanding immediately prior to the effective time were combined into one share of common stock, subject to the payment of $0.55 for each pre-split common share, which would otherwise be converted into a post-split fractional common share.

The number of shares of Sonic Foundry common stock issued and outstanding have been reduced from approximately 36,069,000 shares to approximately 3,606,900 shares post-split, without accounting for the payout on the fractional shares.

Letters of transmittal are expected to be sent to stockholders shortly hereafter. No action by Sonic Foundry's stockholders is required prior to receipt of these letters.

Additional information about the reverse stock split was previously reported by the Company in its press release filed on November 2, 2009, which is available on the Company's website, www.sonicfoundry.com.