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Award Winning Go-Video D2730 Networked DVD Allows Users Easily To Stream Digital Media Files Wirelessly From Their Computer to Their Television

"SONICblue's vision is connecting people with entertainment and with the proliferation of digital cameras and the downloading of audio and video files, today's consumers have a lot of great entertainment content trapped on their computers," said Ed Brachocki, vice president of product marketing, audio and video products, SONICblue. "The networked DVD player will allow them to easily connect to this entertainment, and stream content from their computers to the television."

The Go-Video D2730 is the first player of its kind to have the capability to stream MPEG2 video files through a wireless network from a computer to a consumer electronics component. The D2730 works with either a PCMCIA Ethernet Adapter (included) or an optional PCMCIA 802.11b Wireless Network Card and can stream MPEG1 and MPEG2 video files that are compressed at bitrates up to 3 Mbps. The Networked DVD Player can also stream audio files in both WMA and MP3 format and JPEG image files. The image files can be displayed by predetermined photo albums that the user can easily set up. The MP3 audio files can also be displayed by the Title, Artist, and Genre, using ID3 tag support.

The Go-Video D2730 also incorporates an easy to navigate, intuitive user interface that makes accessing and playing of remote media files easy. Users simply load the included software onto their home computer, which then acts as a server. From the user interface on the television, users can then search for available entertainment content on the computer's hard drive and select audio and video files to stream to the DVD player with the touch of a button on the remote control. The Go-Video D2730 combines a slim-line design and high-end styling to give consumers a player that incorporates all the features and functions of an advanced DVD player, in half the space of a traditional A/V component. In addition to its streaming capabilities, the Go-Video D2730 comes with many advanced DVD features including a Progressive Scan output that provides enhanced quality picture and a built in Dolby Digital decoder giving consumers flexibility in their surround sound applications. The D2730 allows users to play DVDs, Video CDs, Music CDs, HDCDs, Kodak Picture CDs, and MP3 files on CD-R and CD-RW. The D2730 also comes equipped with Composite, Component, and S-Video outputs giving users the highest video quality and Coaxial and Optical Digital Audio Outputs.

Both CEA and SONICblue will showcase the Go-Video D2730 Networked DVD player at the International CES show in Las Vegas, January 8-12, 2003. Please contact a SONICblue representative to arrange a demonstration at the show.

The Go-Video D2730 Pricing and Availability

The new Go-Video D2730 ($249 MSRP) is expected to be available on SONICblue's eStore (www.sonicblue.com) and in retail outlets throughout North America in the first quarter of 2003.

About SONICblue Incorporated

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 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, including, but not limited to, the status of the Go-Video D2730 as the world's first networked DVD player, the dates that the Go-Video D2730 will be available and the locations where it will be available, the showcasing of the Go-Video D2730 at the International CES show, and the features and functionality that will be included in the Go-Video D2730 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 impact of competitive products and pricing and of alternative technological advances, the release of new products from SONICblue's competitors, the ability of SONICblue and its suppliers and partners to meet scheduled delivery and release dates, product engineering and marketing decisions of SONICblue and others, decisions made by the International CES program organizers, and other risks detailed from time to time in the SEC reports of SONICblue Incorporated, including its annual report on Form 10-K for the period ended December 31, 2001 and its quarterly report on Form 10-Q for the period ended September 30, 2002. These forward-looking statements speak only as of the date hereof. SONICblue disclaims any obligation to update these forward-looking statements.

Note to Editors: Rio, Go-Video and ReplayTV are registered trademarks of SONICblue Incorporated. SONICblue, Pro-Gear and Dual-Deck are trademarks of SONICblue Incorporated.

Contact:

     SONICblue
     Ross Purnell, 408/588-8859 (Press)
     rpurnell@sonicblue.com
     Ian Shea, 408/588-8242 (Investor Relations)
     ir@sonicblue.com