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Licensing Deal is First in Cutting Edge Electronics for Coke; Dual Branded Audio Products Expected to Expand Retail and Brand Presence

Combining the strength of SONICblue's digital audio technology with the consumer marketing power of the COCA-COLA trademark, SONICblue will use the products to open new distribution channels such as mass merchants and other strategic retailers. For The Coca-Cola Company, these co-branded products represent the Company's first application of the COCA-COLA trademark on cutting edge electronic products.

The first Coca-Cola and Rio branded digital audio player is expected to be launched during the first half of 2002. Details of the product will be announced at a later date.

``Partnering with Coca-Cola gives us a strategic product offering that we expect will expand the lead we already hold in established markets, while also entering us into significant, new market segments,'' said David Huffman, vice president of audio product marketing, SONICblue. ``We have high expectations for this partnership.''

``Every officially licensed product bearing a trademark of The Coca-Cola Company is viewed as another opportunity to connect with consumers,'' said Susan Feeley, director, merchandise services for Coca-Cola North America. ``SONICblue is a great partner for us in entering the digital audio category because they are well known for building highly sought-after products on the cutting-edge of consumer electronics.''

About SONICblue Incorporated (www.SONICblue.com)

SONICblue is a leader in the converging Internet, digital media, entertainment and consumer electronics markets. Working with partners that include some of the biggest brands in consumer electronics, SONICblue creates and markets products that let consumers enjoy all the benefits of a digital home and connected lifestyle. SONICblue holds significant financial assets, global marketing capabilities and a focused technology portfolio that includes Rio® digital audio players; ProGear(TM) Information Appliances; ReplayTV® personal television technology and software solutions; and Go-Video® Dual-Deck(TM) VCRs and integrated DVD+VCRs.

Except for the historical information contained herein, the matters set forth in this press release 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 risk and uncertainties that may cause actual results to differ materially, including, but not limited to, the ability of SONICblue Incorporated, its suppliers, retailers and distributors to meet product release dates, manufacturing difficulties, and other risks detailed from time to time in the SEC reports of SONICblue Incorporated, including its quarterly report on Form 10-Q for the period ended September 30, 2001. These forward-looking statements speak only as of the date hereof. SONICblue disclaims any intention or obligation to update or revise any forward-looking statements.

SONICblue is a trademark of SONICblue Incorporated. ReplayTV is a registered trademark of ReplayTV, Inc. Go-Video is a registered trademark of Sensory Science Corp. Rio is a registered trademark of RioPort, Inc. and is used by SONICblue under license from RioPort, Inc. All other products and brand names as they appear in this release are trademarks or registered trademarks of their respective holders. All specifications may be changed without notice. Transfer times over broadband connections may be slower than anticipated.

Contact:

     SONICblue
     Tracy Perry, 408/588-8086 (Investor Relations)
     tperry@SONICblue.com
      or
     The Bohle Company for SONICblue
     Blake Williams, 310/785-0515 ext. 233 (Press)
     blake@bohle.com