Sonic Enters Multi-Year DVD On Demand Technology Licensing Agreement With RealNetworks

New RealPlayer Enables Users to Burn Online Video to CD or DVD

September 18, 2007

Sonic Solutions® today announced a multi-year, global licensing agreement with RealNetworks® for Sonic AuthorScript®, the company's media formatting and CD/DVD burning engine. RealNetworks has integrated the AuthorScript DVD burn technology into the new version of the RealPlayer®, enabling users to reliably burn personal content and online digital media entertainment files that are not DRM protected to CD or DVDs that play on the more than one billion DVD players installed worldwide. Users of the standard free version of the new RealPlayer can easily burn downloaded video content, including Flash video, to Video CDs for viewing on many commercial DVD players. Those interested in creating customized DVDs of their favorite online content can upgrade to the "Plus" version of the new RealPlayer for a one-time fee of $29.99 and gain access to Sonic's custom DVD burning technologies. The new DVD burning functionality forms an important bridge between the PC and the TV, enabling RealPlayer Plus users to view their online content in the comfort of their living rooms. Resulting discs translate into hours of uninterrupted personalized programming that can be enjoyed around the house and on the go, and safely archived for future viewing. The new RealPlayer recognizes DRM video protection systems and does not copy DRM-protected content. In addition to DVD authoring, RealPlayer Plus users gain access to advanced video controls and CD burning, a 10-band equalizer, and enhanced media transcoding. The new RealPlayer and premium RealPlayer Plus can be downloaded from http://www.realplayer.com. "Providing consumers with the control and flexibility to view, save and experience online video whenever and wherever they choose is a key focus for how Real is approaching the Internet video revolution," said Jeff Chasen, vice president of player and horizontal products at Real. "The inclusion of Sonic's powerful AuthorScript technology in the new RealPlayer is a significant value to our customers and is a key component to extending digital entertainment beyond the PC." AuthorScript is at the heart of Sonic's range of technologies for reliably recording digitally distributed entertainment including Sonic DVD On Demand(TM) and Qflix(TM) platforms that allow protected video streams to be legally downloaded and burned to DVD. Sonic's technologies are becoming increasingly important to content owners and distributors, as well as online hosting and delivery services that are supporting the changing video-consumption habits of consumers. According to recent studies by the Consumer Electronic Association (http://www.CEA.org), viewing online video content is on the rise with 39% of households now accessing Internet video streams. Enjoying this online content beyond the PC is also important to consumers with 47% indicating a desire to watch PC video on their TVs. This portability becomes increasingly important to consumers when purchasing movies online. Interest is at 33% when the movie purchased can be burned to DVD -- almost double that of movie purchases for PC viewing only. "We are extremely pleased to contribute to the new version of the RealPlayer and be associated with one of the most widely distributed media players in the world and a highly recognizable and trusted brand," said Dave Habiger, president and CEO, Sonic Solutions. "RealNetworks is an ideal partner to extend Sonic's market coverage and further establish our DVD On Demand technologies as the choice for a range of content owners and distributors looking to satisfy consumer desire for greater control over their entertainment experience. There is an enormous amount of online, user-generated, personal content as well as independent video that people can only watch on their PCs. Now with RealPlayer and Sonic, that content can be moved to the big screen in the living room, the car, or to Mom's house using a highly familiar format, DVD." Created by Sonic's Advanced Technology Group, AuthorScript and Sonic DVD On Demand are part of the company's ever-increasing portfolio of technologies that are licensed to enable media playback, DVD recording and authoring and electronic sell through. Sonic's technologies are licensed by leading technology companies such as Adobe, Microsoft, Nintendo, and Broadcom and used to enable digital media experiences in a wide variety of markets including consumer electronics, PCs, kiosks, automotive entertainment systems, and music and video download services. In addition to standard DVD, Sonic has introduced comprehensive support for emerging high-definition formats, Blu-Ray Disc and HD DVD.

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