Sonic Foundry's Media Services Division Enters into Agreement with Listen.com

Sonic Foundry[R] Inc. (NASDAQ: SOFO), the leading developer and marketer of digital media and Internet software tools, services, and systems, today announced it has entered into a media service partnership with Listen.com, the Internet's comprehensive guide to online music, to encode over 100,000 audio CDs into a streaming media format. This one-year agreement will also include consulting services for each Listen.com project. CDs will be encoded into multiple media formats.

"We're pleased to be part of a partnership that ensures the highest quality output for Listen.com's content. Our encoding services provide the necessary reduction of noise and miscellaneous artifacts found in much of the audio content currently available, giving all of our clients the security that they will receive the highest quality finished product in the industry," stated Dan McLellan, vice president and general manager for Sonic Foundry's Media Services Division.

About Listen.com

Listen.com is the Internet's comprehensive guide to online music. The site includes original reviews and categorization of more than 120,000 artists and links to their legally posted work on 1,000 Web sites. Listen.com's guide is also syndicated to AltaVista, AOL's Spinner and Winamp, Excite@Home, Lycos, RealNetworks, shockwave.com, Snap.com, Sony, and ZDNet.

Rob Reid, a former venture capitalist and author of "Architects of the Web" founded Listen.com in December, 1998. Financial backers include all five major music labels (BMG Entertainment, EMI Recorded Music, Sony Music, Universal Music Group, and Warner Music Group), the Barksdale Group, August Capital, Attractor Ventures, Hambrecht & Quist, Index Ventures, Austin Ventures, Trans Cosmos, Altos Ventures, Imagine Media founder and CEO, Chris Anderson, CNET founder and chairman, Halsey Minor, Gateway Computers founder and chairman, Ted Waitt, and Maverick Records' principals. Listen.com has 150 employees and is based in San Francisco's "Audio Alley." Listen.com and the Listen.com logo are service marks of Listen.com Inc.