SONICblue and Coca-Cola Unveil COKE-Branded MP3/CD Player

Business Wire, May 29, 2002

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--May 29, 2002

SONICblue(TM) (Nasdaq:SBLU) and The Coca-Cola Company (NYSE:KO) today unveiled their first co-branded product: the COKE Brand SP50C CD/MP3 player. The COKE Brand SP50C player, a sleek, eye-catching portable compact disc player, allows music enthusiasts to play both standard music CDs and CDs containing MP3 files -- making it possible to store up to 10 hours of music on a single CD. The COKE Brand SP50C is priced at $89.95 and is expected to be on retail shelves shortly.

"We're bringing to market a very unique product that combines SONICblue's award-winning CD/MP3 technology with the power of the Coca-Cola trademark at an attractive price point," said David Huffman, vice president of Audio Products, SONICblue. "A great first product, we expect the COKE Brand SP50C to be highly popular and very visible this summer."

The Coca-Cola Company's first branded digital audio product, the new COKE Brand SP50C allows SONICblue to explore new distribution channels for its technology and is expected to serve as a key promotional item in forthcoming Coca-Cola brand campaigns.

"The COKE Brand SP50C is a highly attractive product tie-in for the Coca-Cola brand with significant promotional potential," said Susan Feeley, director, licensing for Coca-Cola North America. "This is an exciting and fun way to connect with consumers and we intend to showcase the product in several of our summer promotional campaigns."

About the COKE Brand SP50C Player

Designed for the digital music enthusiast, the new COKE Brand SP50C player builds on the award-winning features of SONICblue's RioVolt(TM) family of products. The COKE Brand SP50C features:

-- Playback of standard CDs as well as MP3 CDs, providing up to 10 hours of
music on a single CD

-- Accessory kit with custom earphones, a car cassette adapter and a car power
adapter

-- Text display for ID3 title information, letting users view track information
while music is playing

-- Up to 120 second skip protection keeps the music playing while on the move

-- 10 hours of playtime on 2 AA batteries

-- Folder navigation, programmable playlists and custom play with repeat and
shuffle modes, putting the user in complete control of their music

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; ReplayTV(R) personal television technology and software solutions; and Go-Video(R) integrated DVD VCRs, Dual-Deck(TM) VCRs, and digital home theater systems.

Except for the historical information contained herein, the matters set forth in this press release, including statements as to any future co-branded products, when the SP50C is expected to be available at retailers, the ability to successfully bring the SP50C to market and to offer it at an attractive price, the uniqueness of the SP50C's features, the popularity and visibility of the SP50C, SONICblue's exploration of new distribution channels, the promotion of the SP50C in Coca-Cola's branding and promotional campaigns, and the promotional potential of the SP50C 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 SONICblue, its suppliers, retailers and distributors to meet scheduled release dates, the impact of competitive products and technology, retailers' and consumers' acceptance of the SP50C, changes in component prices, marketing and promotional budgets, and other risks detailed from time to time in the SEC reports of SONICblue Incorporated (formerly S3 Incorporated), including its annual report on Form 10-K for the period ended December 31, 2001 and its quarterly report of Form 10-Q for the period ended March 31, 2002. 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. SONICblue, RioVolt and Dual-Deck are trademarks of SONICblue Incorporated. Rio, ReplayTV and Go-Video are registered trademarks of SONICblue. All other products and brand names as they appear in this release are trademarks or registered trademarks of their respective holders.