Revolutionary Application Enables Home DVD Video Recording and DVD Editing

Berlin, Germany (August 27, 2001) ­ Sonic Solutions (NASDAQ: SNIC) and Philips (NYSE:PHG) announced today at the Internationale Funkausstellung Convention (IFA) that Philips will bundle Sonic MyDVD with Philips¹ new DVDRW208 DVD+RW writer, giving PC users and video enthusiasts the power to convert their personal videos into DVD discs in a single step. In addition to Direct-to-DVD™, a technology developed by Sonic for recording directly to the DVD+RW format, MyDVD incorporates Sonic¹s new DVD-Editing™ feature which takes advantage of DVD+RW¹s advanced recording capabilities, enabling users to edit their videos directly on DVD disc by changing menus, trimming video clips, adding additional content from their PC, or importing content directly from Philips¹ new set-top DVDR1000 DVD Video Recorder. The resulting DVD discs can be viewed on Philip¹s DVD Video Recorder, standard set-top DVD players, and DVD-equipped PCs.

"Sonic MyDVD and its integrated DVD editing technology move home video recording to the next level," said Hans Van Stiphout, Product Manager, BL ReWritable at Philips Components. "Sonic MyDVD, in combination with Philips¹ new DVDR1000 Home DVD Video Recorder and our DVDRW208 DVD+RW data drive, makes it possible for home viewers to record their favorite TV shows or home videos directly onto DVD disc, edit out the parts they don't want, add stylish menus or additional video clips, and record the new version back onto the original DVD disc."

Sonic MyDVD makes it possible to take DVDs which have been recorded on the Philips DVDR1000 home DVD Video Recorder, make changes and edit content, and then re-record the revised version onto the original DVD disc. MyDVD also lets users capture video and audio directly from camcorders or VHS decks connected to a PC, recording in real-time, to create DVD+RW discs that can be played on home set-top players or DVD-equipped PCs.

"Philips and Sonic are bringing Hollywood-quality DVD recording to the home," said Bob Doris, President and CEO of Sonic Solutions. "Sonic is delighted that MyDVD will play a key role as Philips¹ new home DVD recording products change the way people create and distribute their home videos."

About MyDVD
MyDVD Video is built on Sonic¹s Hollywood-standard DVD formatting engine ­ the same technology used to produce tens of millions of consumer DVD-Video titles. Building on this standard ensures that DVDs produced with the application are playable on the widest range of consumer DVD players. MyDVD provides three ways for consumers to create their own professional-looking DVD titles: Direct-to-DVD™

The first solution for recording directly to the DVD, MyDVD allows video from a camcorder or VCR to be written to DVD-recordable discs in a single step. In this mode, the user connects a camcorder or VCR to the PC and the application automatically converts the video and audio into DVD-compatible formats, creates menus and buttons for each video clip, and burns to the DVD-recorder.

DVD Authoring
In authoring mode, interactive DVDs can be created by dragging and dropping different types of multimedia elements into a DVD project ­ video from camcorders, video files on hard disk in AVI, MPEG-1 and MPEG-2 formats, audio and graphics data. MyDVD includes a built-in, faster-than-real-time1 transcoder that automatically converts all incoming video formats into those compatible with DVD players, freeing the user from the headaches of determining DVD file compatibility. MyDVD includes a wide range of professionally designed styles ­ menu backgrounds, buttons and other features that add polish to projects. Chapter points can be added to any video, automatically or manually on-the-fly as video is being recorded. This means that DVD titles created with MyDVD include all of the navigation, buttons and menus automatically, yielding professional quality results for the home user.

DVD Editing™
Sonic MyDVD is the first application that not only records DVDs in real-time, but also creates DVDs that can be re-edited right on disc. DVD Editing is an exciting new technology innovated by Sonic which allows discs to be changed after they are initially created, enabling an entirely new generation of DVD applications, such as video diaries, up-to-the-minute, customized sales presentations, compilations of family events, and more.

About DVD+RW
Jointly promoted by Philips Electronics, HP, MCC/Verbatim, Sony Corporation, Ricoh Company Ltd., Thomson Multimedia, and Yamaha Corporation, the DVD+RW format provides a universally compatible, rewritable DVD format that enables true convergence between personal computing and consumer electronics products. DVD+RW discs written on a DVD+RW recorder can be read and played on the majority of existing and future DVD-Video players and DVD-ROM drives.

About Sonic Solutions (NASDAQ: SNIC)
Based in Marin County, California, Sonic (http://www.sonic.com) is the leading manufacturer of solutions for DVD publishing. Sonic MyDVD (http://www.mydvd3.sonic.com) is the first DVD authoring application for consumers, making it easy to capture "your life on DVD." Sonic DVDit!™ (http://www.dvdit.com) is the first application for DVD authoring targeted at videographers and corporate video producers, and is bundled with major video editing, capture, encoding and media production systems. Sonic DVD Creator®, Sonic Scenarist®, Sonic ReelDVD™ and Sonic DVD Fusion® 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 is the first for creating content for the new DVD-Audio format.

¹ Based on performance tests conducted at Sonic Solutions on a single-processor Pentium 4 system running at 1.5GHz, on a 1 minute, full-frame, 30fps NTSC video file in AVI format.

© 2001 Sonic, Sonic Solutions, the Sonic logo, cDVD, DVD Editing, MyDVD and ReelDVD are trademarks of Sonic Solutions. AuthorScript, Sonic DVD Creator, DVDit!, Sonic DVD Fusion, Scenarist and SonicStudio are registered trademarks of Sonic Solutions. All other company or product names are trademarks of their respective owners. Specifications, pricing and delivery schedules are subject to change without notice.