New York, New York (October 24, 2001) - Sonic Solutions [NASDAQ: SNIC], the leading provider of DVD publishing applications, today joined Microsoft Corp. at the launch of Windows XP to demonstrate Sonic MyDVD 3, a revolutionary new software application that allows consumers to transform home videos into interactive DVDs. MyDVD allows home users to burn DVD videos directly from a camcorder or VCR, manually create their own custom DVD-Video discs as well as re-edit recorded discs by changing menus and adding or deleting videos. While MyDVD also runs on Microsoft Windows Millennium Edition (Windows Me), Windows 98, Windows 98 SE and Windows 2000 Professional, it takes advantage of unique features of Windows XP, providing additional functionality and more powerful capabilities.

"We are extremely pleased to be a part of the Windows XP launch," said Bob Doris, President of Sonic Solutions. "Windows XP truly unlocks the world of digital media. And with MyDVD, Windows XP users can take all of the digital content they've created using Windows Media Player and Windows Movie Maker, and publish these as Hollywood-style, full-function DVD-Video discs ‹ the perfect way to share their creativity with family and friends."

Highlighting the many benefits of Microsoft's new operating system, Sonic's demonstration of MyDVD running on Windows XP will show how video can be captured from a home camcorder, in real-time, to hard disk, and then automatically produce a DVD title which can be played on a set-top DVD player or a DVD-equipped PC. Sonic will also show exclusive Windows XP AutoPlay functionality within MyDVD, which allows "plug-and-play" transfer of home videos to DVD. "Windows XP is the best Windows operating system for experiencing digital movies, digital photography and digital video," said John Frederiksen, general manager for marketing of Windows at Microsoft. "The combination of Windows XP and Sonic MyDVD will enable users to create, connect and communicate with ease in the digital world."

About Sonic MyDVD
Sonic MyDVD Version 3 is built on Sonic's Hollywood-standard DVD formatting engine, ensuring 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 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 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.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.