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Rio Backpacks increase music storage in the Rio 600 and Rio 800 portable players, while adapting to current and emerging memory standards. The first two Rio Backpacks available this year will offer one hour (32MB) and two hours (64MB) of built-in memory at a cost of $99.95 and $169.95, respectively. Each of these Backpacks provides additional functionality by including a rechargeable battery and AC adapter for the same cost as the memory alone. All Backpacks operate interchangeably between the Rio 600 and the Rio 800 players.

``Today, consumers are required to purchase entirely new portable players if they want the benefits of new music storage formats,'' said Jim Cady, president of Rio, a SONICblue company. ``We anticipate that Rio owners, however, will be able to protect the initial investment in their player and enjoy more flexibility by simply purchasing new Backpacks to begin enjoying more music storage types.''

Rio expects that as it develops future Backpacks, these slide-on accessories will feature support for various interchangeable memory formats. Backpacks featuring Microdrive and removable SD/MMC card support are expected to be available in the first half of 2001.

``When a new memory format becomes available, we intend to support it,'' concluded Cady.

About Rio (www.riohome.com)

Rio, a SONICblue company, is a pioneer and acknowledged leader in digital audio. Focused on delivering a family of digital audio products designed for various lifestyles, Rio is dedicated to engineering superior portable, home and car digital audio products for consumers.

About SONICblue (www.SONICblue.com)

A leader in the converging Internet, digital media and consumer device markets, SONICblue Incorporated holds significant financial assets, global marketing capabilities and a focused technology portfolio, that includes Rio® digital audio players, HomeFree(TM) home networking solutions, Diamond(TM) Internet access products and frontpath(TM) Information Appliances.

Except for the historical information contained herein, the matters set forth in this press release, including statements as to the expected availability, features and benefits of Rio Backpacks and the expected release of the Rio 800, are forward-looking statements within the meaning of the ``safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, but not limited to, the ability of Rio to integrate emerging memory formats with the Backpacks, manufacturing difficulties, possible delays in the release of other products, and other risks detailed from time to time in the SEC reports of SONICblue Incorporated (formerly S3 Incorporated), including its quarterly report on Form 10-Q for the quarter ended September 30, 2000. These forward-looking statements speak only as of the date hereof. SONICblue and Rio disclaim any intention or obligation to update or revise any forward-looking statements.

SONICblue, HomeFree, Diamond and frontpath are trademarks of SONICblue. Rio is a registered trademark of RioPort, Inc. and is used by SONICblue under license from RioPort, Inc. Other marks referenced herein are the property of their respective owners.

Note: A Photo is available at URL:

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Contact:

     Porter Novelli Convergence Group
     Nate Schwalbach, 206/727-2880 (Editorial)
     nate.schwalbach@pnicg.com
     or
     SONICblue Incorporated
     Tracy L. Perry, 408/588-8086 (Investor)
     ir@sonicblue.com