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

NOVATO, Calif. & SANTA MONICA, Calif.--(BUSINESS WIRE)--July 17, 2006--Sonic Solutions (NASDAQ:SNIC), the leader in digital media software, and Movielink (www.movielink.com), the leading broadband video-on-demand (VOD) service, announced today a licensing agreement for technology that, when authorized for use by content providers, will enable consumers to burn downloaded movies onto recordable discs in a protected format for playback on standard DVD players. As part of the agreement, Movielink has licensed Sonic's DVD-on-Demand technology to permit home users to securely download, format and burn movies to recordable DVD media. Additionally, Sonic will include the Movielink Service within its Roxio CinePlayer(TM) and other Sonic software applications distributed through OEM and retail channels.

"We are anticipating an industry resolution to establish rules for converting secure Internet-delivered Movielink downloads into a secure format compatible with DVD players in the market today," said Jim Ramo, CEO, Movielink. "This gives consumers a more flexible product while providing copyright holders with adequate protection of their content. Our relationship with Sonic is a critical advancement and will enhance the value of our service, along with the capabilities already available, by allowing customers to burn and playback movies on standard DVD players."

“Fuelled by an installed base of more than a hundred million DVD players in the U.S. today, DVDs are by far the most popular and familiar method of watching movies at home”

"Fuelled by an installed base of more than a hundred million DVD players in the U.S. today, DVDs are by far the most popular and familiar method of watching movies at home," said Jim Taylor, senior vice president and general manager of Sonic Solutions' Advanced Technology Group. "By working with Movielink, the leader in broadband movie downloading, and allowing users to download, purchase and burn movies to DVDs, we are combining the flexibility and convenience of Internet video distribution with the permanency and portability of the DVD video format."

The license agreement will allow Movielink and Sonic to leverage their combined expertise and technology and establish a platform for content owners to easily offer a securely burned DVD direct to the consumer via the Sonic software applications and the Movielink Manager. The parties will implement a parallel marketing collaboration to rapidly establish a large user base of tens of millions of users by widely distributing through Sonic's PC OEM, retail and e-tail distribution channels.

Sonic is the leading provider of DVD formatting and burning software, and over 250 million copies of software applications that contain the Sonic AuthorScript(R) DVD engine have been distributed for use on PCs. Sonic has developed and licensed to Movielink a new module for AuthorScript -- called AuthorScript(R) DVD on Demand(TM) -- that includes a DRM gateway for secure export of content from approved download systems, precision video codecs that simultaneously convert Internet-delivered video into MPEG-2 video for DVD during the download process, automated DVD formatting tools for converting video into interactive DVDs, and an Extensible Media Protection Architecture (XMPA) that allows a wide variety of studio-approved copy protection mechanisms to be applied to DVDs as they are being burned.

About Movielink LLC

Movielink (www.movielink.com) is an online movie download service offering U.S. broadband customers an extensive selection of recently released films and classic movies covering every genre, from action, comedy, drama, family and romance to sci-fi, horror and thrillers. The service is owned and operated by Movielink, LLC, a joint venture of Metro-Goldwyn-Mayer Studios, Paramount Pictures, Sony Pictures Entertainment, Universal Studios and Warner Bros. Movielink content offerings are drawn from the current releases and vast libraries of those studios as well as from those of Walt Disney Pictures, 20th Century Fox and leading independent studios.

About Sonic Solutions

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

Sonic products are globally available from major retailers, online at Sonic.com and Roxio.com, and are bundled with PCs, after-market drives and consumer electronic devices. Sonic's digital media creation engine is the de facto standard and has been licensed by major software and hardware manufacturers, including Adobe, Microsoft, Scientific-Atlanta, Sony, and many others. Sonic Solutions is headquartered in Marin County, California.

Forward Looking Statements

The above paragraphs of this press release may contain forward looking statements that are based upon current expectations. Actual results could differ materially from those projected in the forward looking statements as a result of various risks and uncertainties including, among others, the timely introduction and acceptance of new products, costs associated with new product introductions, the transition of products to new hardware configurations and platforms and other factors, including those discussed in the Company's annual and quarterly reports on file with the Securities and Exchange Commission. This press release should be read in conjunction with the Company's most recent annual report on Form 10-K, Form 10-Q and Registration Statement on file with the Securities and Exchange Commission, which contain a more detailed discussion of the Company's business including risks and uncertainties that may affect future results. The Company does not undertake to update any forward looking statements.

Sonic, the Sonic logo, Sonic Solutions, AuthorScript, DVD on Demand, CinePlayer and Roxio are trademarks or registered trademarks of Sonic Solutions or its subsidiaries in the United States and/or other countries. Movielink and the Movielink logo are registered trademarks of Movielink, LLC in the United States and/or other countries. All other company or product names are trademarks of their respective owners.

Contacts

Sonic Solutions
Chris Taylor, 408-367-5231
chris_taylor@sonic.com
or
Movielink
Elana Altshuler, 323-933-3399 ext. 4258
ealtshuler@mprm.com

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