Sonic Foundry's Audio Anywhere[TM] Promoted for Use with RealNetworks[R] 'RealSlideshow[TM]'

Sonic Foundry (Nasdaq: SOFO) announced today that RealNetworks will promote Sonic Foundry's Audio Anywhere as a music editing and creation tool for use with RealSlideshow, a new authoring tool for creating streaming media slide presentations for viewing over the Internet. RealSlideshow is available for free download from the RealNetworks Web site at www.real.com/products/tools/slideshow/index.html.

Audio Anywhere features the pairing of Sonic Foundry's revolutionary ACID[TM] Style music creation tool with Sound Forge[R] XP 4.5, the express version of the industry's leading PC audio editing program. The ACID Style application enables the authoring of loop-based, royalty-free compositions in the genres of rock, pop, and dance, which can be edited, processed, and further enhanced using Sound Forge XP 4.5. The feature-packed Audio Anywhere also includes a collection of over 800 professional quality sound clips of all varieties, such as music beds, button clicks, sound effects, transitions, tags, and environments. All of Audio Anywhere's elements seamlessly combine to enable RealSlideshow users to develop even more powerful and effective presentations.

"The Audio Anywhere suite is an ideal, value-added complement to RealSlideshow because it allows any PC user to quickly and easily create an original music soundtrack, export it into a slide presentation, and then distribute it from a personal Web site," said Roy Elkins, Sonic Foundry's Vice President of Sales and Marketing. "We are very pleased that a respected industry leader like RealNetworks has chosen to recommend Audio Anywhere as the preferred audio content creation tool for its RealSlideshow authoring application."

"We are excited about the ability for RealSlideshow customers to produce royalty-free audio to synchronize with their digital pictures," said Ben Rotholtz, general manager, Systems and Tools, RealNetworks, Inc. "The Audio Anywhere Suite from Sonic Foundry is a perfect complement for those RealSlideshow customers who are looking to create the most engaging presentations on the Web."

ACID Style, Sonic Foundry's breakthrough audio content creation program, makes the process of creating original, royalty-free music as easy as pick, paint, and play. The software uniquely allows users to preview any loop before adding it to the mix, and its intelligent tempo and pitch matching capability makes all of the loop segments play together instantly and effortlessly. Sound Forge XP 4.5 turns a PC into a virtual sound studio for producing music, sound effects, narration, or synchronizing audio to video. It features a large collection of audio processing tools, such as reverb to add depth, noise gate to clean up speech, and time compression to adjust the length of a song.

The versatile Audio Anywhere suite can save files in a variety of formats, including .WAV, .ASF, .WMA, .AVI, and RealMedia[TM] G2 (.RM), making it possible for users to publish to virtually any type of project. Audio Anywhere sells for a suggested retail price of $99.95 and is available direct from the Sonic Foundry Web site or at OfficeMax, Office Depot, and Staples stores nationwide.

About RealNetworks

RealNetworks, (Nasdaq: RNWK), based in Seattle, is the recognized leader in the streaming media market. It develops and markets software products and services designed to enable users of personal computers and other consumer electronic devices to send and receive audio, video, and other multimedia services using the Web. RealNetworks can be found on the World Wide Web at www.real.com.