CMC Magnetics Signs Qflix Technology Licensing Agreement with Sonic

Producing Qflix DVD Media to Enable Secure Recording of Digitally Distributed Entertainment

Novato, CA (December 19, 2007) — Sonic Solutions® (NASDAQ: SNIC), the leader in digital media software, announced today that CMC Magnetics Corporation (TSEC: CMC), a leading optical storage manufacturer, has signed a Qflix technology and IP licensing agreement. CMC is beginning production on Qflix DVDs, which enable the secure, on-demand recording of digitally distributed entertainment with the same protection as commercially mass-produced titles. CMC is currently taking orders for two versions of Qflix media expected to be in broad use next year. The first type will be employed by duplication system operators providing custom DVD publishing services to retailers. The second type is designed for use in retail movie kiosks as well as in the home, where they will enable consumers to legally record premium entertainment downloaded from the Internet.

“CMC is a key partner helping to deliver a critical component of the Qflix ecosystem,” said Jim Taylor, senior vice president and general manager of Sonic Solutions' Advanced Technology Group. “Along with other partners in the consumer electronics, entertainment distribution, and PC industries, CMC will help create a cost-effective way to digitally deliver content that consumers can own and view in the entertainment venue of their choice, including the living room and anywhere else they play DVDs.”

In addition to appearing on recordable DVDs, the Qflix brand will appear on other consumer products and services including compatible drives and video download services as a symbol for consumers looking for legitimate and reliable "purchase, download, and burn" solutions. Qflix is also the brand for the technology and licensing program that includes product and component certification to enable content owners, service providers, and manufacturers of recordable media, PC DVD writers, network-connected DVD recorders, set-top boxes, and software to create compatible and interoperable solutions.

The royalty-bearing Qflix licensing program for media and optical drive manufacturers was established by Pioneer and Sonic to facilitate the adoption of secure download and burn applications in accordance with the approved industry specifications for recording downloads set by the DVD Forum and the DVD Copy Control Association.

 

About Qflix
The Qflix program offers a new means for content owners to release titles for custom production and sale over the Internet while maintaining the same level of copy protection used on commercially mass-produced DVDs. Sonic's Qflix program provides essential technology and IP for both the professional and consumer market. For professional and enterprise manufacturing of DVDs "on demand," the Qflix program allows production facilities to reduce the cost of carrying physical inventory while simultaneously offering extensive catalogs of content. The program also enables retailers to broaden the number of movies by augmenting physical product with on-demand DVD creation kiosks in their stores. For consumers, the Qflix program provides a long-awaited downloading and burning solution for movies and premium video content in computers and consumer electronic devices such as set-top boxes, networked DVD recorders, and DVRs.

For more information regarding the Qflix technology licensing program, please contact Qflix Licensing (licensing@qflix.com) or visit (www.qflix.com).

 

About Sonic Solutions
Sonic Solutions (NASDAQ: SNIC; http://www.sonic.com) enables the creation, management, and enjoyment of digital media content through its Hollywood to Home products, services, and technologies. Sonic's products range from the advanced authoring systems used to produce Hollywood DVD, HD DVD, and Blu-ray Disc film releases to the award-winning Roxio®-branded photo, video, music, and digital-media management applications. Sonic's patented technologies and AuthorScript® media engine are relied upon by leading technology firms to define rich media experiences on a wide array of consumer electronics, mobile devices, set-top players, retail kiosks, and PCs. Always an innovator, Sonic has taken a leading role in helping professional and consumer markets make the successful transition to the new high-definition media formats and, through the DVD On Demand and Qflix platforms, Sonic is defining new models for the digital distribution of premium Hollywood entertainment. Sonic Solutions is headquartered in Marin County, California.

 

Forward Looking Statements
This press release may contain forward-looking statements that are based upon current expectations, including the distribution and market acceptance of the Qflix program. Actual results could differ materially from those projected in the forward-looking statements as a result of various risks and uncertainties, including those discussed in the Company's annual and quarterly reports on file with the Securities and Exchange Commission. This press release should be read in conjunction with the Company's most recent annual report on Form 10-K, Form 10-Q and other reports on file with the Securities and Exchange Commission, which contain a more detailed discussion of the Company's business including risks and uncertainties that may affect future results. The Company does not undertake to update any forward-looking statements.

Sonic, the Sonic logo, Sonic Solutions, AuthorScript, Hollywood to Home, Sonic DVD On Demand, Qflix, and Roxio are trademarks or registered trademarks of Sonic Solutions in the United States and/or other countries. All other company or product names are trademarks of their respective owners and, in some cases, are used by Sonic Solutions under license.

 

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