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SONIC TO ACQUIRE ROXIO'S CONSUMER SOFTWARE DIVISION

August 25, 2004
SONIC TO ACQUIRE ROXIO'S CONSUMER SOFTWARE DIVISION NOVATO, CA - Sonic Solutions (www.sonic.com) and Roxio recently announced a definitive agreement for Sonic to acquire the consumer software division of Roxio for a total purchase price of $80 million. Sonic believes the acquisition will provide the company with a well-recognized set of consumer software brands, access to long-standing distribution channels, strong product marketing expertise, and key relationships with top-tier retail outlets.

Roxio plans to focus its business on the digital music market and will change its corporate name to Napster. Under the terms of the deal, Sonic will purchase essentially the entire Roxio software operation, including Roxio's CD and DVD recording, authoring, photo and video editing application products (including Easy Media Creator, PhotoSuite, VideoWave, Easy DVD Copy and Toast).

Sonic expects to retain most of the current employees of the Roxio organization. Sonic intends to continue the Roxio brands, and current distribution and OEM relationships. Completion of the acquisition, which is expected to close in the fourth quarter of calendar year 2004.