Sonic Foundry Recognized As One of the Fastest Growing Companies in the United States

Sonic Foundry[R] Inc. (NASDAQ: SOFO), the leading developer and marketer of digital media and Internet software tools, services, and systems, today announced that it was ranked number 224 on the Deloitte & Touche Technology Fast 500, a ranking of the 500 fastest-growing technology companies in North America. Rankings are based on five-year percentage revenue growth from 1995 – 1999. Sonic Foundry grew 1,856% during this period.

"This is a true honor for us. Our employees maintain an untouched level of dedication to making this company a success," stated Rimas Buinevicius, chairman and chief executive officer for Sonic Foundry. "Our ongoing commitment to the development of new technology, the growth of the Media Services division, the addition of new distributors and OEM relationships, and the ongoing growth of our direct marketing business, all have contributed to our amazing level of growth. We only see this continuing."

In its selection of the Fast 500 for Year 2000, Deloitte & Touche's team reviewed financial records for more than 5,000 public and privately held technology companies. To qualify, companies must: (1) have had 1995 revenues of at least $50,000 USD and $75,000 CD for the United States and Canada, respectively; (2) be headquartered in the United States or Canada; and (3) be a "technology company." "Technology company" is defined as one that develops proprietary technology which contributes to a significant portion of the company's operating revenues, manufactures a technology product, or devotes a high percentage of effort to the research and development of technology.

"The vision, drive, and determination of the leaders and employees at Sonic Foundry propelled their company to an elite status as one of 500 fastest-growing technology firms in North America," said Mark A. Evans, managing director of Deloitte & Touche's Technology & Communications Group. "We applaud their dedication to excellence while maintaining a fast-paced growth and commend them for making the Deloitte & Touche Technology Fast 500."

Overall, companies that ranked on the Technology Fast 500 had five-year growth rates ranging from 71,257 to 593 percent, with an average growth rate of 3,956 percent. The majority of Fast 500 winners, or 46 percent, are in the software industry. The selected winners will be featured in the November 27, 2000, issue of Forbes ASAP magazine.

About Deloitte & Touche

Deloitte & Touche, one of the nation's leading professional services firms, provides assurance and advisory, tax, and management consulting services through 30,000 people in more than 100 U.S. cities. The firm is dedicated to exceeding the expectations of its clients and its people. Known as an employer of choice for its innovative human resources programs, Deloitte & Touche has been recognized as one of the "100 Best Companies to Work for in America" by Fortune Magazine for three consecutive years. Deloitte & Touche is part of Deloitte Touche Tohmatsu, one of the world's leading professional services firms, with more than 90,000 people in over 130 countries.

For more information on the Deloitte & Touche Technology Fast 500 or Technology Fast 50 programs, visit www.fast500.com.