Marin County, California (January 26, 2000) – Sonic Solutions (NASDAQ: SNIC) announced today an agreement with Matsushita Electric Industrial Co.’s (MEI) Corporate International Trade Division (CITD) in which the two companies will work together to forge OEM relationships with Japanese manufacturers in promoting DVDit!. As part of this agreement, CITD will act as Sonic’s partner in identifying and closing OEM agreements for DVDit! in the Japanese market. "Sonic DVDit! sets a new standard for easy access combined with extraordinary authoring power," said Mr. Etsushi Hamasaki, General Manager of the Corporate International Trade Division at Matsushita. "We believe DVDit!, along with other innovations such as recordable DVD-RAM, will usher in a new era in which a wide range of people will use the PC to handle video and audio as easily as they handle text today."

Building on its experience in the area of DVD and MPEG video, Matsushita will market Sonic DVDit! in conjunction with software MPEG Codecs, software DVD players and DVD-RAM based storage drives to companies in the PC industry. Matsushita has been one of the key facilitators of DVD as a universal optical format for both AV and PC, and believes that Sonic DVDit! will be a key driving force to bridge the fields of AV and computer technology.

"We're delighted to be working closely with Matsushita to deploy Sonic DVDit! broadly in the PC marketplace in Japan," said Bob Doris, President of Sonic Solutions. "Matsushita was one of the originators of the DVD format, and has a long and proud history among electronics manufacturers. Our partnership with them will strongly assist us in bringing DVDit! to the widest range of consumers."

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 multiplexing 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 video files, allowing users to incorporate virtually any video content – from DV to D1 – into DVDit! projects. With a simple drag-and-drop interface, building DVD titles is as easy as selecting a menu background and then dragging and dropping an AVI file. DVDit! automatically builds buttons and interactivity, transcodes video to MPEG-2, multiplexes and formats content and writes it to DVD-RAM, CD-R or DVD-R for playback in consumer set-top DVD players or DVD-equipped PCs.

About Matsushita Electric
Matsushita Electric Industrial Co., Ltd. (NYSE: MC) is one of the world's leading developers and producers of digital electronics products for the home, the office and in between. Based in Osaka, Japan, it recorded sales of $63.7 billion in the last fiscal year. In addition to the Panasonic brand, the company also sells products under the Technics (audio), Quasar and National brands around the world.

About Sonic Solutions (NASDAQ: SNIC)
Based in Marin County, California, Sonic Solutions designs and manufactures DVD publishing and audio editing systems used by video, audio and multimedia professionals around the world. Sonic's product lines include DVD Creator, the leading system for producing DVD titles; DVD Fusion for Macintosh, the first DVD publishing system designed for non-linear video editors; DVDit! (http://store.dvdit.com/), the easiest way to publish on DVD and the first DVD publishing application for consumers; and SonicStudio HD, the leading digital audio workstation to prepare recorded sound for release on DVD and CD. Sonic is a leader in advancing DVD-Video and DVD-Audio technology and is a full voting-member of the DVD Forum, the standards-setting body for the DVD format.