Sonic Foundry Signs Letter of Intent to Sell its Syndication Business Unit to Carsey-Werner Distribution

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 has agreed to sell its syndication business unit to Carsey-Werner Distribution LLC. Carsey-Werner Distribution is the leading independent distributor of television programming, syndicating numerous shows including The Cosby Show, Roseanne, and current hits such as 3rd Rock from the Sun and That '70s Show.

The letter of intent, whose details were not disclosed, includes cash and leaves Sonic Foundry with a minority stake in the new Carsey-Werner business unit, which will report to Robert Raleigh, President, Carsey–Werner Domestic Television Distribution. Jeff Gerst will remain as the executive in charge of the unit. The business unit will continue to focus on leveraging high-quality streaming video content across multiple syndicated electronic distribution channels.

"Our decision to purchase Sonic Foundry's syndication unit will greatly enhance our syndication platform", said Raleigh. "With the growing demand for substantive streaming content, we see this as a wonderful opportunity to expand our business into the area of new media, which has proven to be a useful business and promotional tool for many who have a need to circulate their content across several mediums. It is also to our benefit to keep Sonic Foundry as a close business partner as we move forward because they offer the services, technology, and expertise we need."

"In analyzing the corporate direction of Sonic Foundry, it was decided that our syndication unit was better matched with the business operations of Carsey–Werner Distribution, a world leader in this industry, and provides the business with the expertise and tools needed to make the division successful," stated Rimas P. Buinevicius, chairman and chief executive officer for Sonic Foundry. "Sonic Foundry will maintain a vested interest in the future of the syndication business unit through equity ownership and a collaborative business relationship. We have had an ongoing relationship with Carsey-Werner Distribution with our media services group, and we expect to build our relationship further."