MADISON, WI & NOVATO, CA — Sonic Foundry^®, Inc. (NASDAQ: SOFO), and Broderbund™ Software announced today an agreement granting Broderbund non-exclusive OEM distribution rights to a selection of Sonic Foundry's award-winning multimedia software titles. These titles include VideoFactory™ and ACID™ Music and will be made available to a broad market through Broderbund's extensive OEM program.

Sonic Foundry is a leading software and services provider of rich media content creation and management technologies. Broderbund, the leading publisher of home productivity software, is well known and respected for taking sophisticated technology and delivering easy to use, powerful products that are used by a wide audience.

Broderbund will offer OEM versions of selected Sonic Foundry products, including Sound Forge^® XP Studio, VideoFactory™, ACID™ Music, ACID DJ and ACID Techno. In addition, Broderbund also will become the exclusive worldwide retail distributor for Super Duper Music Looper™, Sonic Foundry's groundbreaking music creation software developed especially for kids. Broderbund is scheduled to begin shipping Super Duper Music Looper in June to retailers nationwide.

"Sonic Foundry's audio and video software products are ideal for consumer and business users who want to create and edit their own multimedia content using highly sophisticated, yet easy-to-use technology," says Eric Winkler, vice president of marketing at Broderbund. "This partnership is an ideal complement to Broderbund's continuing commitment to deliver rich media products."

"Broderbund has always been on the leading edge of delivering personal productivity software," said Brad Reinke, senior vice president and general manager of products/software for Sonic Foundry. "We're looking forward to offering our state-of-the-art audio and video technology to much broader consumer and professional markets."

Broderbund operates broderbund.com, the company's award-winning website, which is visited by more than one million people every month. It offers greetings, photo albums, more than one million graphics and other products and services.

Broderbund LLC is owned by an affiliate of Gores Technology Group, a privately held international acquisition and management firm that pursues an aggressive strategy of acquiring promising high technology organizations and managing them for growth and profitability.

More information about Broderbund and its products can be found at www.broderbund.com.

About Sony Creative Software

Sony Creative Software inspires artistic expression with its award-winning line of products for digital video, audio, and music production, as well as industry-leading technology for DVD production and Blu-ray Disc™ authoring. Sound Forge™ Pro, ACID™ Pro, and Vegas™ Pro software have defined digital content creation for a generation of creative professionals. These signature product lines continue to advance media production by providing powerful, accessible tools. Today, there is a Sony Creative Software application for every level of expertise, including a full line of consumer software based on the company's professional applications. In addition, Sony Creative Software produces the extensive Sony^® Sound Series collection of royalty-free loops and samples, Sony Pictures Sound Effects Series exclusive sound effects, and Vision Series video creation assets. Further, the company provides the industry-leading tools for enterprise-level Blu-ray Disc™ authoring: Blu-code™ encoder, Blu-print^® software, and on-Q Create^® for Blu-ray Java. The company’s customers span the globe and include professionals in the film, television, video game, and recording industries, as well as students, educators, and hobbyists.

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 Sony Creative Software'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.