Virgin Records and Sonic Foundry Media Software Host Lenny Kravitz Remix Contest; Winner to Attend Winter Music Conference and Meet Rock Star

Business Wire, March 4, 2002

Business Editors/Technology & Entertainment Writers

MADISON, Wis.--(BUSINESS WIRE)--March 4, 2002

Virgin Records and Sonic Foundry(R), Inc. (Nasdaq:SOFO), today announced a joint partnership in hosting a Lenny Kravitz Remix Contest at Sonic Foundry's ACIDplanet.com(TM) Website.

Remixers can use ACID XPress, the free version of Sonic Foundry's award-winning music creation tool.

The contest, open for entries until March 14, is a unique way for tomorrow's great producers to get recognition today. Each contestant will creatively remix the track, "Believe in Me," from Lenny's current self-titled platinum album. The person who best remixes the track, which is now available online for remixing at ACIDplanet.com (www.acidplanet.com), will receive a number of benefits: courtesy of Virgin Records, s/he will receive a trip to the Winter Music Conference (WMC), March 23-27 in Miami, Florida, which remains the most important, high profile dance music event in the industry. After the conference, the winner will meet Lenny on March 29 during his rehearsals for his upcoming world tour, and receive an autographed guitar. The winning remix will also be considered to be included in an upcoming remix sampler. Additionally, this opens the door to the entertainment industry and allows unlimited networking opportunities to arise.

"Lenny has created a great opportunity in utilizing the Internet to discover the next great remixer," said Ty Braswell, Vice President of New Media, Virgin Records America.

Kravitz has recently experimented with loop-based music, popularizing his rock sound with professional remixers. This contest offers fans the opportunity to create their own Lenny remixes. The combination of one of the world's top recording artists and the market's most popular music creation software promises a historic online event.

"The prize package offered in this event demonstrates ACID's stature in the industry," said Dave Chaimson, Sonic Foundry's Director of Marketing. "ACID is well-established at WMC. By coordinating this event with a leading artist like Lenny Kravitz, we can again demonstrate that ACID is a true original . . . the leading application in its class."

ACIDplanet.com is a leading Internet music site, showcase for ACID artists, and home to tens of thousands of musicians and songs. ACIDplanet is the top Website for remix contests. Past remixes have included Beck, the Beastie Boys, New Order, Madonna, and many others. Information on ACIDplanet and remixing can be found at www.acidplanet.com.

About Sonic Foundry(R), Inc.

Sonic Foundry, founded in 1991, is a leading provider of professional rich media solutions with offices in Madison, WI; Santa Monica, CA; Pittsburgh, PA; and, Toronto, Canada.

Sonic Foundry Media Software develops sophisticated software tools for the creation, editing and publishing of digital multimedia. Production professionals use its Sound Forge(R), ACID(TM), Vegas(R) Video and Vegas(R) Audio tools worldwide for everything from audio and video creation to non-linear digital video editing and streaming media development.

Sonic Foundry Media Systems (formerly MediaSite) provides customized development of automated rich-media applications, and scalable solutions that allow media and entertainment companies, as well as enterprises and government organizations, to deploy, manage and distribute video content on IP-based networks.

Sonic Foundry Media Services is the pre-eminent supplier of digitization, management, and delivery solutions for various industries, with emphasis placed on services for the entertainment sector. These services consist of conversion, reformatting, and encoding of television, film, and audio content for multiple delivery platforms. Serving as the link between content and customers, the services enable media delivery through existing and emerging distribution channels.

Certain statements contained in this news release regarding matters that are not historical facts may be forward-looking statements. Because such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, uncertainties pertaining to continued market acceptance for Sonic Foundry's products, its ability to succeed in capturing significant revenues from media services and/or systems, the effect of new competitors in its market, integration of acquired business and other risk factors identified from time to time in its filings with the Securities and Exchange Commission.