Sonic Foundry Signs OEM Agreement with Imation

Sonic Foundry (AMEX: SFO), a leading developer and marketer of digital audio software for the Windows[R] platform, today announced that it has signed an OEM agreement with Imation (NYSE: IMN). Imation is a global technology company that creates system, product, and service solutions for the handling, storage, transmission, and use of images and information. With the agreement, Imation will bundle Sonic Foundry's Sound Forge XP with the Imation CD-R Super Recorder 8x20.

"We are very pleased to include Sound Forge XP with the Imation CD-R drive," said Roy Elkins, Vice President of Sales and Marketing at Sonic Foundry. "The professional quality digital audio tracks that users can create with Sound Forge XP is a perfect fit with the CD-R Super Recorder 8x20."

The Imation CD-R Super Recorder 8x20 creates custom CDs twice as fast as any 4x recorder. The 4MB buffer for maximum reliability prevents aborted and interrupted recordings. In addition, the CD-R Super Recorder 8x20 has 8x write speeds and a 20x read speed to enable quick recording, duplicating, archiving, and backup.

Sound Forge XP is Sonic Foundry's award-winning audio media editing environment with a wide range of processes, tools, and effects for manipulating digital audio. Sound Forge XP was built from the ground up as a Windows platform product and features support for streaming Web audio + video production. Sound Forge XP delivers over 25 powerful digital audio processes which allow users to explore a full range of effects including Reverb, Ten-band EQ, Distortion, and Time Compression/Expansion. Further processing is available through the use of Sonic Foundry's downloadable ExpressFX audio plug-ins. The software easily saves any .WAV or .AVI file and is perfect for editing audio synchronzied to .AVI video. Sound Forge XP also supports an extensive set of file formats, including Microsoft Windows Media Technologies 4.0 .ASF files and RealNetworks' RealSystem G2 files.

About Imation

Based in Oakdale, MN, Imation supplies a variety of products and services worldwide for the information and image management industry, specializing in digital and conventional color proofing systems, including the industry-standard Matchprint color proofing system, Rainbow color proofing systems, digital prepress software, and brand and media set management software and solutions for customers worldwide. Imation products are supported by a worldwide customer service organization. In 1998 the Company reported revenues of approximately $2.0 billion. As of December 31, 1998, Imation employed approximately 6,400 people worldwide.

Additional information about Imation is available on the Company's Web site at www.imation.com or by calling Imation toll-free at 888/466-3456.