Sonic Foundry Receives Anticipated Deficiency Notice from NASDAQ Due to Executive Appointment Changes and Appointment of Paul Peercy to Audit Committee

MADISON, Wis. - April 13, 2011 - Sonic Foundry, Inc. (NASDAQ: SOFO), the recognized market leader for rich media webcasting, lecture capture and knowledge management, announced today that on April 13, 2011, following the recommendation of its nominating committee, the Board of Directors of Sonic Foundry appointed Paul Peercy to serve on the company's audit committee. The appointment follows the company's receipt of a notice from the NASDAQ Stock Market that it was not in compliance with NASDAQ's independent director and three person audit committee requirements as set forth in NASDAQ Listing Rule 5605.

The NASDAQ letter, which the company expected, was issued in accordance with NASDAQ listing rules due to the resignation of Gary Weis from the Audit Committee and his appointment as Chief Executive Officer.

Sonic Foundry is provided with a cure period to regain compliance with the audit committee requirements between now and either its next stockholders meeting or March 31, 2012, whichever is earlier. The company believes that the appointment of Paul Peercy to serve on the audit committee satisfies the NASDAQ three person audit committee requirement.

Sonic Foundry has until May 22, 2011, to submit a plan to regain compliance with NASDAQ's majority independent director requirement. The company plans to fill the board vacancy with a new independent director in the near future.