Sonic Foundry Ships Sound Forge 6.0

May 7, 2002

Newest version of professional digital audio recording, editing and mastering software features powerful new tools for faster, more precise editing and significant enhancements in user flexibility.

MADISON, WI - MAY 7, 2002 - Sonic Foundry Inc.® (NASDAQ: SOFO), a leading software and services provider of rich media content creation and management technologies, announced today that it has begun shipping a new version of Sound Forge®, the company's award-winning professional digital audio recording, editing and mastering software. Sound Forge 6.0 includes many new powerful features and enhancements, including nondestructive audio editing, multitask background rendering, 32-bit/64-bit float/192kHz file support, enhanced DirectX^TM plug-in management, QuickTime^TM and Windows Media^TM format import and user interface enhancements.

Sound Forge remains the industry-standard for audio editing, audio recording, effects processing and streaming media creation. This software is used worldwide for production in leading recording studios, post-production houses, broadcast facilities, home studios, radio stations and as part of multimedia curricula in hundreds of academic institutions nationwide. Sound Forge 6.0 includes an extensive set of customizable processes, effects and tools for manipulating audio, and supports a wide range of audio and video file formats, including Windows Media^TM, RealMedia^TM, QuickTime^TM and MPEG 1&2.

"Sound Forge 6.0 establishes a new standard for professional digital audio editing and media production on the PC", said Brad Reinke, general manager and senior vice president for Sonic Foundry product software. "Version 6.0 expands on a decade of leadership by adding features that make it faster and more powerful than ever, From nondestructive editing to new formats for import and rendering, Sound Forge 6.0 provides the most intuitive and efficient digital audio editing environment available for media professionals worldwide".

New Features in Sound Forge 6.0 include:

• Nondestructive Audio Editing - Users can create a clean, professional final product - now with lightning-fast precision.
  
  
• Multitask Background Rendering - Users can save valuable time by continuing production on one file while Sound Forge processes another in the background
  
  
• 32-bit/64-bit float/192 kHz file support - Sound Forge 6.0 now supports full resolution 32-bit files for pristine audio quality.
  
  
• Enhanced Time Zoom (24:1) - Allows users to perform precise sample-level editing.
  
  
• New Modeless Audio Plug-In Chainer - Users can select, preview, and apply their favorite effects and hear the results immediately on any open data window.
  
  
• New DirectX® Plug-in Manager - Sound Forge 6.0 features a new plug-in manager that allows users to sort, arrange and customize audio effects more efficiently.
  
  
• Tabbed Docking Windows - Users can dock floating windows, including Regions List, Playlist, Play Meters, and Time Display individually, or on top of each other, providing a higher degree of organization and accessibility.
  
  
• Full support for 4 GB and larger files - Sound Forge 6.0 now supports files of all sizes, as long as the user's file system supports NTFS.
  
  
• QuickTime^TM, Windows Media^TM Format Import - Users can open and edit MOV, WMA, and WMV formats for quick transcoding to other file types.
  
  
• FREE Vegas Video LE 3.0 Multitrack - Sound Forge6.0 includes a FREE streamlined version of Vegas Video 3.0 (Vegas Video LE), Sonic Foundry's professional multitrack digital video and audio editor.
  
  

For a complete list of the new features in Sound Forge 6.0, refer to the company Web site at: www.newmagic.com.au or www.sonicfoundry.com

Availability and Pricing

The RRP for Sound Forge 6.0 is $599.00 as a boxed product or from select New Magic retail stores nationwide. Registered users of Sound Forge 5.0 can upgrade direct from New Magic for only $229 and owners of Sound Forge XP can upgrade to Sound Forge 6.0 for only $319 at the online upgrade store www.newmagic.com.au .

About SONIC FOUNDRY, INC.

Sonic Foundry, founded in 1991, is a leading provider of professional rich media solutions with offices in Madison, WI; Santa Monica, CA; Pittsburgh, PA; and, Toronto, Canada.

Sonic Foundry Media Software develops sophisticated software tools for the creation, editing and publishing of digital multimedia. Production professionals use its Sound Forge®, ACID^TM, and Vegas® Video tools worldwide for everything from audio and video creation to non-linear digital video editing and streaming media development.

Sonic Foundry Media Systems (formerly MediaSite) provides customized development of automated rich-media applications, and scalable solutions that allow media and entertainment companies, as well as enterprises and government organizations, to deploy, manage and distribute video content on IP-based networks.

Sonic Foundry Media Services is the pre-eminent supplier of digitization, management, and delivery solutions for various industries, with emphasis placed on services for the entertainment sector. These services consist of conversion, reformatting, and encoding of television, film, and audio content for multiple delivery platforms. Serving as the link between content and customers, the services enable media delivery through existing and emerging distribution channels.

Certain statements contained in this news release regarding matters that are not historical facts may be forward-looking statements. Because such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, uncertainties pertaining to continued market acceptance for Sonic Foundry's products, its ability to succeed in capturing significant revenues from media services and/or systems, the effect of new competitors in its market, integration of acquired business and other risk factors identified from time to time in its filings with the Securities and Exchange Commission.