Sonic Foundry's Growth Leads into International Expansion

DELFT, NETHERLANDS — Sonic Foundry (AMEX: SFO) today announced the opening of a European head office in the Netherlands to enable further growth of the Company. Sonic Foundry, Inc. is a rapidly growing software development company. Sonic Foundry's products have received numerous industry awards and are used worldwide for music production.

With the opening and future further expansion into the European continent Sonic Foundry has established a very important foothold in a strong musical-software oriented market. Today Sonic Foundry European business augments to nearly 20% of total revenues, targeted to grow to 50% in 2000.

Sonic Foundry, Inc. has conducted business with international European distributors through their world headquarters in Madison, Wisconsin.

"With the opening of the European office, we can better serve our customers, talk local languages, and listen better to the changing requirements in the European markets", said Sonic Foundry Chairman and CEO, Rimas P. Buinevicius. "In the past we had a small team working from Madison with our 20+ European distributors, but now with the setup of the office we have a professional team based in the Netherlands to work closely with our customers."

Sonic Foundry Europe is based in the historical town of Delft in the Netherlands. Delft has earned world-fame with the blue-colored pottery. Furthermore Delft is an international city with a very strong technical university. As Sonic Foundry Chairman and CEO, Rimas P. Buinevicius describes it: "Delft has the ambience and quality we built into our products." He continues: "When we first visited Delft in June, we realized that the atmosphere of the city coincides with the atmosphere we have in Madison."

Johanna Bierwirth, Director of International Business Development, will run Sonic Foundry's European office. The corporation has hired René Metz, European Sales Director, Albert de Vlieger, European Marketing Director, Rutger de Groot, Promotions Manager, and Pepé Dijkstra as Operations Manager to further grow the European business.

"It's a big challenge to put Sonic Foundry's products prominently on the map of Europe," said Albert de Vlieger, European Marketing Director. "To achieve that we will work closely with our network of European distributors to grow the pro-audio, multimedia, broadcast, and consumer markets."

Sonic Foundry ships a range of professional audio software for Intel-based PCs. Among their new products, Sonic Foundry announced ACID[TM] which defines a new product category by combining a user-friendly graphical interface with a music construction engine that takes user selected audio loops and adjusts them automatically to create unique musical compositions.

The combination of ease of use and professional features allows ACID to appeal to a broad range of customers who require easy access to royalty-free content. ACID will be used for creating and enhancing dance music, adding background music to videos, enhancing Web pages, and for simple entertainment in the home.

ACID ships with hundreds of pre-recorded loops of different musical formats, instruments, and sounds, including Rock, Country, Hip-Hop, Alternative, Disco, Techno, Funk, Rave, Industrial, Bass, Drums, Guitar, Vocal, Brass, Synthesizer, Turntable, Sound Effects, and Ambient Sounds.

Demo versions of ACID can be obtained by anyone with a Web browser by visiting the Sonic Foundry Web site. All products are available through the international distributors. Address information of the distributors can be obtained from Sonic Foundry's Website or contacting Sonic Foundry in Europe at (telephone) +31 (0)15 215 4200 or (fax) +31 (0)15 215 4222.