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17.07.2006 10:30:00

Sonic and Movielink Team Up to Enable DVD Burning of Downloaded Movies; Movielink Licenses Sonic DVD-on-Demand Technology to Burn Discs for Playback on DVD Players

Sonic Solutions (NASDAQ:SNIC), the leader in digitalmedia software, and Movielink (www.movielink.com), the leadingbroadband video-on-demand (VOD) service, announced today a licensingagreement for technology that, when authorized for use by contentproviders, will enable consumers to burn downloaded movies ontorecordable discs in a protected format for playback on standard DVDplayers. As part of the agreement, Movielink has licensed Sonic'sDVD-on-Demand technology to permit home users to securely download,format and burn movies to recordable DVD media. Additionally, Sonicwill include the Movielink Service within its Roxio CinePlayer(TM) andother Sonic software applications distributed through OEM and retailchannels.

"We are anticipating an industry resolution to establish rules forconverting secure Internet-delivered Movielink downloads into a secureformat compatible with DVD players in the market today," said JimRamo, CEO, Movielink. "This gives consumers a more flexible productwhile providing copyright holders with adequate protection of theircontent. Our relationship with Sonic is a critical advancement andwill enhance the value of our service, along with the capabilitiesalready available, by allowing customers to burn and playback movieson standard DVD players."

"Fuelled by an installed base of more than a hundred million DVDplayers in the U.S. today, DVDs are by far the most popular andfamiliar method of watching movies at home," said Jim Taylor, seniorvice president and general manager of Sonic Solutions' AdvancedTechnology Group. "By working with Movielink, the leader in broadbandmovie downloading, and allowing users to download, purchase and burnmovies to DVDs, we are combining the flexibility and convenience ofInternet video distribution with the permanency and portability of theDVD video format."

The license agreement will allow Movielink and Sonic to leveragetheir combined expertise and technology and establish a platform forcontent owners to easily offer a securely burned DVD direct to theconsumer via the Sonic software applications and the MovielinkManager. The parties will implement a parallel marketing collaborationto rapidly establish a large user base of tens of millions of users bywidely distributing through Sonic's PC OEM, retail and e-taildistribution channels.

Sonic is the leading provider of DVD formatting and burningsoftware, and over 250 million copies of software applications thatcontain the Sonic AuthorScript(R) DVD engine have been distributed foruse on PCs. Sonic has developed and licensed to Movielink a new modulefor AuthorScript -- called AuthorScript(R) DVD on Demand(TM) -- thatincludes a DRM gateway for secure export of content from approveddownload systems, precision video codecs that simultaneously convertInternet-delivered video into MPEG-2 video for DVD during the downloadprocess, automated DVD formatting tools for converting video intointeractive DVDs, and an Extensible Media Protection Architecture(XMPA) that allows a wide variety of studio-approved copy protectionmechanisms to be applied to DVDs as they are being burned.

About Movielink LLC

Movielink (www.movielink.com) is an online movie download serviceoffering U.S. broadband customers an extensive selection of recentlyreleased films and classic movies covering every genre, from action,comedy, drama, family and romance to sci-fi, horror and thrillers. Theservice is owned and operated by Movielink, LLC, a joint venture ofMetro-Goldwyn-Mayer Studios, Paramount Pictures, Sony PicturesEntertainment, Universal Studios and Warner Bros. Movielink contentofferings are drawn from the current releases and vast libraries ofthose studios as well as from those of Walt Disney Pictures, 20thCentury Fox and leading independent studios.

About Sonic Solutions

Sonic Solutions (NASDAQ:SNIC)(http://www.sonic.com) is the leaderin digital media software, providing a broad range of interoperable,platform-independent software tools and applications for creativeprofessionals, business and home users, and technology partners.Sonic's products range from advanced DVD authoring systems andinteractive content delivery technologies used to produce the majorityof Hollywood DVD film releases, to the award-winning Roxio(R)-brandedCD and DVD creation, playback and backup solutions that have becomethe premier choice for consumers, prosumers and business usersworldwide.

Sonic products are globally available from major retailers, onlineat Sonic.com and Roxio.com, and are bundled with PCs, after-marketdrives and consumer electronic devices. Sonic's digital media creationengine is the de facto standard and has been licensed by majorsoftware and hardware manufacturers, including Adobe, Microsoft,Scientific-Atlanta, Sony, and many others. Sonic Solutions isheadquartered in Marin County, California.

Forward Looking Statements

The above paragraphs of this press release may contain forwardlooking statements that are based upon current expectations. Actualresults could differ materially from those projected in the forwardlooking statements as a result of various risks and uncertaintiesincluding, among others, the timely introduction and acceptance of newproducts, costs associated with new product introductions, thetransition of products to new hardware configurations and platformsand other factors, including those discussed in the Company's annualand quarterly reports on file with the Securities and ExchangeCommission. This press release should be read in conjunction with theCompany's most recent annual report on Form 10-K, Form 10-Q andRegistration Statement on file with the Securities and ExchangeCommission, which contain a more detailed discussion of the Company'sbusiness including risks and uncertainties that may affect futureresults. The Company does not undertake to update any forward lookingstatements.

Sonic, the Sonic logo, Sonic Solutions, AuthorScript, DVD onDemand, CinePlayer and Roxio are trademarks or registered trademarksof Sonic Solutions or its subsidiaries in the United States and/orother countries. Movielink and the Movielink logo are registeredtrademarks of Movielink, LLC in the United States and/or othercountries. All other company or product names are trademarks of theirrespective owners.

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