Melco Inc. (BUFFALO) Chooses Sonic MyDVD® and CinePlayer™ for New DVD-R/RW Drive

Marin County, California (December 9, 2002) — Sonic Solutions announced today that Melco Inc. (BUFFALO), one of Japan's largest suppliers of computer peripherals, is bundling Sonic MyDVD 4 and Sonic CinePlayer 1.5 DVD creation and playback software with their new DVR-21FB internal DVD-R/RW drive.

With support for DVD-R/RW, CD-R/RW and CD-ROM, the high-performance BUFFALO DVR-21FB internal ATAPI drive allows consumers to quickly archive and share home movies on DVD and Video CD. The bundled Sonic MyDVD application provides users with a complete solution for turning their home videos, music and digital photos into Hollywood-style DVDs and Video CDs with motion menu backgrounds, animated buttons and high-quality slide shows. With Sonic CinePlayer, users of the DVR-21FB drive are assured the highest-quality PC playback of their DVD and Video CD titles.

"Sonic is clearly the leading provider of technology for home DVD creation, and we are extremely pleased to continue working with them in bringing the best DVD products to our customers," said Mr. Hidetoshi Yamaguchi, Director and General Manager, PC Solutions Business Unit at Melco. "Combining Sonic MyDVD with our new DVR-21FB internal drive gives home users access to a powerful, integrated and easy-to-use DVD creation solution for quickly creating, sharing, and archiving content on DVD."

"With their new DVR-21FB DVD-R/RW drive, Melco has created a top-of-the-line offering for DVD content creation and archiving," said Koki Terui, Senior Vice-president of Operations, Pacific Rim, for Sonic. "MyDVD and CinePlayer are the perfect complement to the BUFFALO DVR-R/RW drive, and we are very pleased that Sonic technology is able to play an integral role in their product offering."

About Sonic MyDVD
Sonic MyDVD is the leading PC application for consumer DVD creation. Sonic MyDVD makes it easy to burn high-quality DVDs with motion-video menus, animated buttons and true-DVD-slideshows™ with transitions and soundtracks. Sonic MyDVD also features optimized Direct-to-DVD™ recording which allows users, in just a few clicks, to record their content directly to DVD from a video source connected to the computer's video input. Sonic MyDVD is also OpenDVD^®-compliant, enabling previously burned DVDs to be opened, re-edited, updated with new video and photo content and re-burned to DVD and CD recordable/re-writable media.

About Sonic CinePlayer
With its high-performance MPEG decoding engine and native support for Microsoft DirectX®, Sonic CinePlayer provides the highest-quality DVD and Video CD playback experience available on the PC. Sonic CinePlayer is also the first software DVD player to take advantage of OpenDVD. With its ability to launch an OpenDVD project directly from the player into an authoring application for further editing, Sonic CinePlayer takes a bold step in the direction of giving users a seamless experience in both creating and playing DVD content.

About Melco Inc. (BUFFALO)
With four subsidiaries in Japan, Melco Inc. (BUFFALO) is one of the leading Japanese manufacturers of computer peripherals such as Memory, Storage Devices and Wireless LAN. In addition to its activities, Melco manages "FreeSpot" services. Melco Inc. (BUFFALO) is listed on the first section of the Tokyo Stock Exchange in 1996.

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 world's leading manufacturer of solutions for DVD creation. Sonic MyDVD® (http://www.mydvd.com) is the first DVD authoring application for consumers, and is the leading DVD solution among DVD recorder and PC manufacturers. Sonic DVDit!® (http://www.dvdit.com) is the leading DVD authoring application for videographers and corporate video producers; more than two million copies of MyDVD and DVDit! have been shipped. With its high-performance MPEG decoding engine and support for Microsoft DirectX®, Sonic CinePlayer™ provides the highest-quality video and audio playback of DVDs or Video CDs. Sonic DVD Creator®, Sonic Scenarist®, Sonic ReelDVD® and Sonic DVD Producer™ 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. Sonic's AuthorScript® engine for DVD formatting and burning is licensed by leading software developers including Adobe, Microsoft and Sony. Sonic is a full voting member of the DVD Forum, the standards-setting body for the DVD format.

Sonic, the Sonic logo, Sonic CinePlayer, Edit-on-DVD, OpenDVD, and True DVD Slideshow are trademarks of Sonic Solutions. AuthorScript, Sonic DVD Creator, MyDVD, DVDit!, ReelDVD and Scenarist are registered trademarks of Sonic Solutions. All other company or product names are trademarks of their respective owners and, in some cases, are used by Sonic under license. Specifications, pricing and delivery schedules are subject to change without notice.