Upgraded Multitrack Editor Available at Sonicfoundry.com

Vegas Audio 2.0 is a PC-based, multitrack audio recording and editing system, combining a powerful feature set with a streamlined interface to quickly edit and construct audio projects. It includes new features such as XFX(TM) 1, 2, and 3 DirectX Plug-Ins with DirectX Plug-In support on all tracks, envelopes that lock to events, cutting, copying, and pasting of envelopes, time stretching with pitch correction (Rubber Audio(TM)), built-in metronome, destructive effects processing, an advanced media pool, and enhanced video support.

The upgraded version also allows for fast, nondestructive editing of multiple tracks and synchronizing video and audio with frame-by-frame precision. Files can be arranged with different sampling rates, bit depths, and file formats on a single track. Vegas Audio 2.0 offers real-time playback as well as the ability to add timeline metadata such as captions and URL flips that automatically synchronize web pages with media files. Now with support for QuickTime 4.0, OpenDML AVI, and many other popular digital audio and video formats and hardware inputs and outputs, Vegas Audio 2.0 seamlessly integrates into any digital studio without compromising the creative process.

``Vegas Audio 2.0 provides audio professionals with a sophisticated tool to produce incredible audio content,'' stated Jeff Conover, vice president of marketing for Sonic Foundry. ``With the integration of our XFX 1, 2, and 3 DirectX Plug-Ins, users can now add a multitude of effects and elements that they could not before.''

About Sonic Foundry

Founded in 1991, Sonic Foundry is a leading developer and marketer of digital media and Internet software tools, services, and systems. Its award-winning products and services are used worldwide for multimedia and Internet applications including audio, video and film post-production, broadcast production, and digital content creation. The Company's products and services offer media consumers everywhere the ability to create and capture media, edit the content, and deliver the information via fixed media channels or electronic distribution.

Sonic Foundry's Media Services Division offers premium solutions for delivering audio and video content online. The division provides the industry's most powerful combination of proprietary technologies incorporating high-end encoding, webcasting, syndication systems, content and digital rights management, and consulting services. For more information on Sonic Foundry, visit www.sonicfoundry.com.

Certain statements contained in this news release regarding matters that are not historical facts may be forward-looking statements. Because such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, uncertainties pertaining to continued market acceptance for the Company's products, the Company's ability to succeed in capturing significant revenues from media services, the effect of new competitors in the Company's market, integration of acquired businesses and other risk factors identified from time to time in the Company's filings with the Securities and Exchange Commission.

Contact:

     Corporate Communications Manager
     Sonic Foundry
     Dawn Tappy, 608.280.7495
      dawnt@sonicfoundry.com
        or
     Investor Relations
     Strategic Growth International
     Richard Cooper/Rob Schatz, 516.829.7111
      sgi@netmonger.net