Sonic Foundry Media Services Announces Relationship with Atomic Pop

At the Webnoize conference in Los Angeles, November 15-17, 1999, Sonic Foundry Media Services, the digital encoding division of Sonic Foundry, Inc. (Nasdaq: SOFO), announced an alliance with leading online music destination Atomic Pop. Sonic Foundry and Atomic Pop will work together to send the highest quality audio and video over the Internet.

Atomic Pop, since its launch in February, has quickly established a reputation as an innovator in the digital delivery of music via the Internet. Sonic Foundry Media Services will encode and convert Atomic Pop's entire catalogue of music for Internet distribution. Using its proprietary CODE[TM] technology, SFMS will also encode video materials for Atomic Pop. Encoding converts analog source material to digital, and compresses it to be streamed or downloaded via the Internet. (Editor's Note: "The Plain English Guide to Digital Conversion Technology," a layperson's overview of this new field, is available upon request.)

Sonic Foundry Media Services CODE[TM] offers the most advanced filtering processes in the world, resulting in video output with sharper images, higher frame rates and overall superior fidelity to the original. Only Sonic Foundry CODE[TM] delivers true-to-the-original 24 frame-per-second encoded output. Files processed using CODE technology require less processing power when played back at the client and show improved frame rate and image quality. Sonic Foundry Media Services is the only business of its kind to use its own, fully proprietary systems end-to-end in the production process to encode, verify, and move media over the Internet.

"Sonic Foundry has long-term experience in digital encoding and has been recognized as a leader in the encoding services industry," said Al Teller, President and CEO of Atomic Pop. "Sonic Foundry's Media Services division will enable our rapidly expanding music assets to be digitized and made available to consumers very quickly."

"Sonic Foundry has always been dedicated to creating the best tools for music professionals. Now, with our new division we are honored to join Al Teller and Atomic Pop to push forward the future of entertainment on the Internet," said Monty Schmidt, President, Sonic Foundry.

About Atomic Pop
Atomic Pop was founded by Al Teller, the former head of MCA Music Entertainment Group, President of CBS records, and CEO of Alliance Entertainment. Atomic Pop is an Internet-centric music company committed to leveraging the digital medium to change the way music is acquired, marketed, promoted, sold, and distributed. The company is based in Santa Monica, California. Additional information can be found on the Internet at www.atomicpop.com.