SONICblue Introduces Rio One Digital Audio Player; New $99 Portable Brings the Rio Audio Experience to the Entry-Level Market

Business Wire, August 22, 2001

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--Aug. 22, 2001

SONICblue(TM) (Nasdaq:SBLU) pioneered the digital audio revolution with the introduction of the industry's first MP3 player, the Rio 300. Today the Company announces the immediate availability of Rio One -- a full-featured, sub-$100 portable digital audio player. A new design resembling the immensely popular Rio 300 MP3 player, the Rio One adds a new color scheme, a USB connection for ultra-fast music transfers and one hour of CD-quality music playback through support for the Windows Media (WMA) file format. The Rio One can be upgraded using flash memory cards to support up to five hours of music playback.

Lightweight, expandable and affordable, Rio One is the ultimate purchase for teens, students and other first-time buyers seeking extreme portability and at least an hour's worth of high-quality music playback without the cost of premium features.

"As a first mover and leader in the MP3 market, we believe that the Rio brand represents a level of excellence unmatched by any of its competitors," said Janet Leising, vice president of marketing and business development, SONICblue. "The Rio One doesn't compromise on functionality and quality, and is by far the entry-MP3 player winner."

Pricing and Availability

The new Rio One ($99 MSRP) player is currently available on SONICblue's eStore (www.sonicblue.com) and will be available within the next two weeks in North American retail outlets including Best Buy, Circuit City, CompUSA and Fry's Electronics. The Rio One ships with 32MB of built-in memory, earphones, USB cable, one AA battery for up to 10 hours of music playback and audio management software for both the PC and Macintosh platforms. There is also a range of accessories available for the Rio One, including 32MB and 64MB smart media cards for music storage expansion, a convenient carrying case and a car cassette adapter. For more information on the Rio One and its accessories, visit SONICblue's Rio products home page (www.riohome.com).

About SONICblue Incorporated (www.SONICblue.com)

SONICblue is a leader in the converging Internet, digital media, entertainment and consumer electronics markets. Working with partners that include some of the biggest brands in consumer electronics, SONICblue creates and markets products that let consumers enjoy all the benefits of a digital home and connected lifestyle. SONICblue holds significant financial assets, global marketing capabilities and a focused technology portfolio that includes Rio(R) digital audio players; ProGear(TM) Information Appliances; ReplayTV(R) personal television technology and software solutions; Go-Video(R) Dual-Deck(TM) VCRs and integrated DVD+VCRs and California Audio Labs high-end home entertainment theater components.

Except for the historical information contained herein, the matters set forth in this press release, including statements as to the expected availability, features and benefits of the Rio One and the competitive position of the Rio brand, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, but not limited to the ability of the Company, its suppliers, retailers and distributors to meet scheduled release dates, the impact of competitive products and pricing and of alternative technological advances, and other risks detailed from time to time in the SEC reports of SONICblue Incorporated (formerly S3 Incorporated), including its quarterly report on Form 10-Q for the quarter ended June 30, 2001. These forward-looking statements speak only as of the date hereof. SONICblue disclaims any intention or obligation to update or revise any forward-looking statements.

Note to Editors: SONICblue is a trademark of SONICblue Incorporated. ReplayTV is a registered trademark of SONICblue Inc Incorporated. Rio is a registered trademark of RioPort, Inc. and is used by SONICblue under licenses from RioPort Inc. All other products and brand names as they appear in this release are trademarks or registered trademarks of their respective holders. All specifications may be changed without notice.