SONICblue's Rio Riot Launch Met With Good Initial Demand; Manufacturing to be Increased

Business Wire, May 9, 2002

Business Editors & High-Tech/Entertainment Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--May 9, 2002

SONICblue(TM) (Nasdaq:SBLU) announced today that the launch of its first hard drive-based portable music player -- the Rio Riot(TM) -- has been successful and the Company has taken steps to increase current supply. With innovative features and excellent sound quality, the Rio Riot has garnered numerous, favorable industry reviews from renowned publications including USAToday, New York Times, CNET and MP3.com, which recently called the Rio Riot "the ultimate portable MP3 player."

The driving force behind this demand is the unique feature set offered by the Rio Riot that no other product currently on the market matches. This compelling combination of features includes a sizeable 20GB hard disk drive that stores more than 5,000 songs or the equivalent of 400 CDs, an exclusive Rio LogiTrack interface that makes it easy to find, sort and play music, and compatibility with both PC and Mac platforms straight out of the box. The first in a family of hard drive-based portable players from SONICblue, the Rio Riot is available through many electronics retailers nationwide, including Best Buy, Circuit City, Fry's and Amazon.com.

"As evidenced by strong sales and favorable industry reviews, the Rio Riot is a great first step for SONICblue in the hard drive-based portable audio player market," said David Huffman, vice president of audio products, SONICblue. "We view portable hard drive products as a significant opportunity for the company and we intend to be the long-term winner in this market."

About the Rio Riot

Designed to store an entire music collection, the Rio Riot is built around a 20GB hard-drive that holds more than 5,000 songs or 400 CDs worth of high-quality, digital music. Making your music accessible and easy to manage, the Rio Riot integrates SONICblue's newly developed Rio LogicTrack(TM) user interface, the category's largest backlit display and a sleek, ergonomic design. The Rio Riot also includes an integrated FM tuner, long-life rechargeable batteries and innovative new music management software. The Rio Riot is priced at $399.95 MSRP. For more information on the Rio Riot, including detailed product specifications, please visit SONICblue's website (www.SONICblue.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; 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 future SONICblue products, future customer demand for portable hard drive products, and SONICblue's long-term success in the market for portable hard drive products, 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 to manufacture and develop the Rio Riot and other products, the ability of SONICblue, its suppliers, retailers and distributors to meet scheduled release dates, customer demand for and acceptance of SONICblue's product and their features, 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 annual report on Form 10-K for the year ended Dec. 31, 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.

SONICblue and Dual-Deck are trademarks of SONICblue Incorporated. Rio, ReplayTV and Go-Video are registered trademarks of SONICblue Incorporated. All other products and brand names as they appear in this release are trademarks or registered trademarks of their respective holders.