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Company to Expand Distribution Channels

``To date, we have experienced strong demand for our DVD/VCR combo products through club retail outlets and -- with a much lower product price -- we now expect to broaden that success through widespread distribution to our other core retail partners,'' said John Todd, chief operating officer and chief financial officer, SONICblue.

The Go-Video DVR4200 and DVR4250 are perfect convenience products for consumers who want to upgrade their home theater with the unsurpassed audio and video excitement of DVD without losing the compelling features and versatility of a VCR -- all in one space saving device. Key features of the DVR4200 and DVR4250 include:

• Plays DVDs, Audio CDs, VHS Tapes and MP3s on CD-R and CD-RW
• Watch a DVD while recording a television program
• Dolby Digital Output for easy connection to Surround Sound Systems
• Composite, S-Video and Component Video Outputs
• 10-bit Video Digital to Analog Converter and 27MHz Advanced
• Digital Filter for the best quality digital transfer
• Virtual 3D Surround Sound provides life-like acoustics through an existing pair of speakers -- even your TV speakers
• Complete Program Record(TM) automatically adjusts tape speed to ensure you record a complete program no matter what tape you use
• Four-Head Hi-Fi VCR for superior Slow Motion and Stop Action control
• Convenient Child Lock for the front panel
• Intuitive remote operates both the DVD and VCR
• Auto Clock set and Channel Search for easy setup

In addition, the DVR4250 model includes Dolby DTS Digital output and utilizes 19-micron VCR heads for higher quality playback. The DVR4200 has a manufacturer's suggested retail price (MSRP) of $199 and the DVR4250 is $229 MSRP. Both products are expected to be available in April at retail stores nationwide.

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; ReplayTV® personal television technology and software solutions; and Go-Video® integrated DVD+VCRs, Dual-Deck(TM) VCRs, and digital home theater systems.

Except for the historical information contained herein, the matters set forth in this press release, including statements as to the expansion of SONICblue's retail presence and expected consumer acceptance of the new Go-Video DVD/VCR players 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 SONICblue to manufacture and develop Go-Video DVR4200 and DVR4250, the ability of SONICblue, its suppliers, retailers and distributors to meet scheduled release dates, the impact of competitive products and pricing and of alternative technological advances 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/A for the quarter 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.

Note to Editors: SONICblue is a trademark of SONICblue Incorporated. ReplayTV, Go-Video and Rio are registered trademarks of SONICblue Incorporated. All other products and brand names as they appear in this release are trademarks or registered trademarks of their respective holders

Contact:

     SONICblue
     Paul Crossley, 503/453-1473
     pcrossley@SONICblue.com
     Tracy Perry, 408/588-8086 (Investor Relations)
     tperry@SONICblue.com