Sonic and CustomFlix Partner to Deliver Industry’s First On-demand DVD Publishing

Provides Videographers and Video Enthusiasts with an Easy and Low-cost Means of Distributing Short-run Titles on DVD

Marin County, California (September 4, 2002) – Sonic Solutions® (NASDAQ: SNIC) and CustomFlix Labs, Inc., today announced that Sonic MyDVD®, the industry’s leading application for creating DVDs, now integrates technology that enables users to cost-effectively publish and distribute DVD titles in short to medium production runs ranging from tens to thousands of copies. Using the CustomFlix on-demand video publishing service, which is linked directly from within Sonic MyDVD 4, content producers now have a simple way to reduce the risks, costs, and hassles involved in publishing DVDs.

By simply clicking "Publish Your DVD" from within Sonic MyDVD, content producers can send in their DVD masters to CustomFlix, who will handle production and merchandising: creating a personalized e-store with a 60-second streaming trailer, sales transactions, on-demand duplication, customized packaging, and shipping. DVD producers retain total control and ownership of their title, with a minimal "pay-as-you-go" fee provided to CustomFlix as orders come in. The high-quality Mitsui Gold DVD-R media used by CustomFlix, as well as full-color package printing, ensures a shelf-ready product with a professional image. In addition, CustomFlix offers services to transfer videotape to DVD, using the professional-quality Sonic video encoders that are the standard in Hollywood for releasing commercially-distributed titles.

"With MyDVD and DVDit!®, Sonic has millions of users who are creating high-quality DVDs for pleasure or profit," said Mark Ely, Vice-president and General Manager of the Desktop Products Group at Sonic. "Until now, there hasn’t been an easy or cost-effective way to merchandise and distribute their titles in volume, but Sonic and CustomFlix have changed all that. Now, it’s even possible to turn a DVD hobby into a small business."

"Our partnership with Sonic allows us to deliver exciting new ways for DVD publishers to profit from their work," said Dana LoPiccolo-Giles, President of CustomFlix. "Sonic, with the world’s largest installed base of DVD publishers, provides CustomFlix with the ideal platform to launch our new business. Integrating Sonic’s applications with our on-demand publishing services and providing exclusive opportunities for Sonic users are just the first steps as we work together to make it easier than ever before for a large and growing number of video producers to turn their content into cash."

Sonic MyDVD 4, available through retail stores and the Web (http://store.mydvd.com/) in September, is the first Sonic product to make use of this technology. Sonic plans to expand this capability across its product lines as new versions are released. Sonic customers will also receive exclusive discounts and other offers from CustomFlix when they make use of this service.

About CustomFlix Labs, Inc.
CustomFlix helps content owners, broadcasters, and video producers monetize their assets with its unique on-demand video publishing service. Founded by the same team that initially developed Media Cleaner™ Pro, the award-winning industry-standard application for encoding video, CustomFlix management has a proven track record of successfully delivering solutions for video professionals. CustomFlix solves the distribution dilemma for today’s producers by making low-risk, high-profit video publishing a reality. For more information about the company and service, please visit www.CustomFlix.com or call (978) 626-0061.

About Sonic Solutions (NASDAQ: SNIC)
Based in Marin County, California, Sonic (http://www.sonic.com) is the world's leading developer of solutions for creating DVDs. Sonic MyDVD® (http://www.mydvd.com) is the world’s leading DVD application for consumers, and it is the DVD application of choice among leading OEMs of PCs, recordable drives, and video and graphics cards. Sonic DVDit!® (http://www.dvdit.com) is the leading DVD authoring application for videographers and video enthusiasts. More than two million copies of DVDit! and MyDVD have been sold. 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, CinePlayer, DVD PrePlay, Edit-on-DVD and OpenDVD are trademarks of Sonic Solutions. AuthorScript, AutoDVD, DVD Creator, MyDVD, DVDit!, ReelDVD, Scenarist and Sonic Solutions 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.