Sonic Foundry Enters Into Bundling Partnership with ADS Technologies

Sonic Foundry[R], Inc. (NASDAQ: SOFO), a leading developer of digital media and Internet software, products, and services, today announced that it has entered into an OEM partnership with ADS Technologies, a world leader in Universal Serial Bus and IEEE-1394/FireWire solutions for the personal computer.

VideoFactory[TM], Sonic Foundry's entry-level digital video and audio editing tool designed for the home user, will ship with the ADS PYRO 1394 three-port OHCI-compliant PCI host card. The bundle provides users with a comprehensive video capture and editing system for their desktop. This version of VideoFactory will be named VideoFactory Deluxe and is expected to ship to retailers in April 2001.

"Sonic Foundry has long been an industry leader in digital media software and has provided users with powerful audio and video editing tools. Now with the PYRO FireWire/1394 card, Sonic Foundry's VideoFactory Deluxe offers a total DV solution for their personal computers. This OEM partnership brings together the best in DV software and hardware for broadcast-quality video production," remarked Mike McCoy, president of ADS Technologies.

"We are very excited about entering into this unique relationship with ADS. They have continually provided solutions for the video market that are solid and trusted. The influx of digital cameras and related technology results in the need for a powerful, feature-rich software package that produces high-quality video," stated Brad Reinke, senior vice president of sales and marketing for Sonic Foundry.

About PYRO 1394 Three-port OHCI-Compliant PCI Host Card

The PYRO 1394 host card was first introduced in June 1999 as PYRO 1394DV, the first affordable digital video editing system for all levels of DV enthusiasts. It hit the market at a time when digital video editing solutions were exclusive to DV professionals at a cost that was inaccessible to consumers. And while the prices of consumer digital video camcorders dropped, the quality and cost of the PYRO 1394DV made it so popular among DV users that the PYRO 1394 host card is now the number one selling consumer 1394/FireWire upgrade card in the world.

About VideoFactory

This streamlined version of Sonic Foundry's award-winning Vegas[R] Video editing tool provides a straightforward, easy-to-use Windows[R] interface and includes a number of features making video creation easier than ever before. Each track provides a simple drag and drop operation that indicates where to place a variety of media clips, including video, still images, audio, special effects, or text. A multi-media tutorial walks users though a series of easy steps from video capture to encoding.

VideoFactory includes hundreds of royalty-free media clips, including video footage, still images, sound effects, and music beds. The program encodes to RealMedia[R], Windows Media[TM], AVI, MPEG-1 and 2, and QuickTime[R] file formats, and imports BMP, JPEG, GIF, other still images, and MP3 and WAV audio.

About ADS Technologies, Inc.

ADS Technologies of Cerritos, Calif. is a world leader in Universal Serial Bus and IEEE-1394/FireWire solutions for the personal computer. Since the company's inception in 1992, the cornerstone of the company's success has been to introduce niche or high-end technologies to the consumer marketplace with quality devices sold at a reasonable cost. The privately held company manufactures USB and 1394 hardware, and scan converters for both PCs and Macs. For more information visit the ADS Technologies' website at http://www.adstech.com.