Sonic Foundry Announces New Media Services Division

Sonic Foundry[R] Inc. (NASDAQ: SOFO), the leading developer and marketer of digital media and Internet software tools, services, and systems, today announces new and comprehensive service offerings for Sonic Foundry's Media Services[SM] Division.

Sonic Foundry's Media Services Division is the preeminent supplier of digitization, management, and delivery solutions for audio and video content owners, providing the most comprehensive services in the market today. For over 10 years, the Company has developed award-winning, state-of-the-art technologies that have served as the link between content and customers. This experience and future technological initiatives provide proven solutions that enable content delivery to traditional, new, and emerging distribution channels.

The solutions include the following major components:

Integrated Turnkey Systems

As the pioneers in audio and video encoding, Sonic Foundry's Media Services Division provides content owners with software, technical expertise, and hardware as a turnkey system at the client's site. These include content acquisition, management, repurposing, distribution, consulting, and implementation.

ECM (Enterprise Content Management)

The Company will provide the infrastructure for storage, management, and delivery of rich media content across a complete range of distribution channels. This comprehensive solution bridges traditional 'video-to-video' distribution practices with developing 'video-to-data' and 'data-to-data' fulfillment processes. ECM interfaces with established data networks, enabling enhanced internal and external workflows and desktop accessibility of assets. Connecting to emerging Electronic Media Distribution (EMD) networks, ECM allows secure delivery of rich media content via the Internet or private fiber, wireless, and satellite systems.

Media Distribution Fulfillment

The solution enables clients to meet the global demands associated with the distribution of audio, video, and media content via its Media Distribution Fulfillment services. Sonic Foundry's Media Services Division provides detailed and comprehensive reviews of original client content to determine its readiness for international distributions. Once the content is ready for international distribution, the Company performs global international format conversions for traditional broadcast distribution as well as MPEG-1 and -2 conversions for broadband and video-on-demand distribution.

Internet/Broadband Delivery Solutions

The Company has created the industry's most powerful combination of proprietary technologies that power Sonic Foundry's high-end encoding, webcasting, and hosting services. These services offer state-of-the-art technologies that provide the highest quality output for the growing Internet/broadband delivery industry.

"This an extremely exciting time for Sonic Foundry. With the acquisition of STV Communications in April and International Image in August, we have positioned ourselves to provide the leading content providers in the world with fully integrated and comprehensive content management solutions," stated Rimas Buinevicius, chairman and chief executive officer for Sonic Foundry. "We realize that the future lies within the ability to repurpose and distribute content for uses on a global level. Our software, services, systems, and expertise provide the knowledge, the experience, the quality, and the trust needed in this time of new and emerging technologies."