Marin County, California (August 22, 2000) - Sonic Solutions announced today that Melco Inc. (BUFFALO), one of Japan's largest supplier of computer peripherals will bundle Sonic's DVDit! authoring software with their MEG-VC2 MPEG-2 video capture board.

DVDit! is the industry's best-selling and easiest-to-use DVD authoring application. With DVDit!, customers using Melco's MEG-VC2 board can easily and quickly convert their videos to MPEG-2 format and then produce professional quality DVDs.

Part of Melco's BUFFALO line of products, MEG-VC2 allows users to save video libraries in MPEG-2 digital video. Because it is a hardware-based solution, the MEG-VC2 encoding engine offers greater image quality than software encoding and provides access to the full capabilities of the encoder without requiring the fastest, most powerful PC. With the added functionality provided by DVDit!, users can directly author DVDs and play them back on PCs or set-top players. Since DVDit! supports Sonic's cDVD(tm) technology, short DVD-Video titles can be recorded onto standard CD-ROMs and then played back on any of the hundreds of millions of PCs equipped with high speed CD-ROM readers.

"With the growing demand for digital cameras, home video recorders, multimedia PCs and Sonic's DVDit! authoring software, more and more home users are turning to products that will allow them to capture, edit and distribute their movies with the best possible quality," said Mr. Yasuhiro Takaoka, General Manager, Graphic Systems Division at Melco. " By combining Sonic DVDit! with our new MEG-VC2 capture board we will provide our customers with an integrated, easy-to-use solution at an attractive price that will make DVD authoring accessible to more people. We are enthusiastic to be working with Sonic in delivering this groundbreaking solution."

"With millions of DVD-equipped PCs and set-top players on the market, DVD is the most exciting new distribution format for high-quality digital video," said James Manning, DVDit! Product Manager at Sonic Solutions. "Customers who purchase the MEG-VC2 and DVDit! bundle can create and distribute DVD video productions on CD and DVD more easily and affordably than ever. We believe Sonic DVDit! will be the perfect complement to Melco's MEG-VC2 capture board."

About Sonic DVDit!
Sonic DVDit! is the easiest way to publish on DVD. Combining a simple and straightforward user interface with Sonic's award-winning DVD formatting technology, DVDit! gives video professionals, graphic designers, artists and video enthusiasts the power to create stunning interactive DVD content on their PC.

DVDit! is compatible with AVI and QuickTime video files, so that virtually any video content - from DV to D1 - can be incorporated into a DVDit! project. With an intuitive interface, building DVD titles is as easy as selecting a menu background and then dragging and dropping an AVI, QuickTime or MPEG video file. DVDit! automatically builds buttons and interactivity, multiplexes and formats content and records to CD-R or DVD-R for playback in consumer set-top DVD players or DVD-equipped PCs. DVDit! can create interactive titles in DVD-Video, DVD-ROM, and cDVD(tm) formats.

About Melco Inc. (BUFFALO)
With four subsidiaries in Japan, Melco Inc. (BUFFALO) is one of the leading Japanese manufacturers of computer peripherals. In addition to its sales and distribution activities, Melco manages technical computer seminars and offers peripheral device installation services through its "PC Power-up Delivery" service.

Melco also provides a variety of memory, storage and networking products that allow users to utilize the Internet more efficiently and build comfortable computing environments. Additional subsidiaries are present in Taiwan, England, Ireland and the US.

About Sonic Solutions (NASDAQ: SNIC)
Based in Marin County, California, Sonic (http://www.sonic.com) is the leading manufacturer of solutions for DVD publishing and interactive, streaming video on the Internet. Sonic DVDit! (http://www.dvdit.com) is the first application for DVD authoring targeted at consumers and corporate video producers, and is bundled with major video editing, capture, encoding and media production systems. Streaming DVD is the first interactive technology based on DVD for content distribution over the Internet. Sonic DVD Creator and DVD Fusion for Macintosh are the most widely-used systems for professional DVD publishing, and are installed worldwide at major studios, post production facilities and in corporate marketing departments. SonicStudio HD is the leading digital workstation for preparing audio for release on CD and the first for creating content for the new DVD-Audio format. Sonic is also a full voting member of the DVD Forum, the standards-setting body for the DVD format.