Sonic Foundry Forms Strategic Relationship With Warner Bros. Online & Entertaindom.com

Sonic Foundry, Inc. (Nasdaq: SOFO), a leading developer and marketer of digital media and Internet software tools, services, and systems, today announced a strategic business relationship with Warner Bros. Online and Entertaindom.com. The relationship will also involve an interest in Sonic Foundry in exchange for promotional consideration by Warner Bros. Online and Entertaindom.com. This new relationship is part of an $18.5 million private financing round of common restrictive stock, also announced by Sonic Foundry today.

The companies announced a working relationship to enhance entertainment content in the online marketplace. This relationship involves a software and services agreement that allows Sonic Foundry to provide its software and full-scale media deployment technology to Entertaindom.com and Warner Bros. Online. This agreement also contains a provision for Warner Bros. to utilize Sonic Foundry consulting and training services for the purpose of moving large volumes of traditional media to the Web. The companies will collaborate on cross-promotional opportunities in marketing the software, technology, and entertainment content.

"This strategic alliance represents a strong relationship between market leaders focused on delivering media and entertainment to the vastly growing online audience," said Rimas P. Buinevicius, Chairman and Chief Executive Officer of Sonic Foundry. "The combination of chart-topping content and the market-leading Sonic Foundry technology will offer a leading edge Internet media experience."