RITEK Corporation Signs Qflix Technology Licensing Agreement with Sonic

Readies Qflix DVD Media to Enable the Secure Recording of Digitally Distributed Entertainment

Las Vegas, Nevada, CES (January 7, 2008) — Sonic Solutions® (NASDAQ: SNIC), the leader in digital media software, announced today that RITEK Corporation, the leading global manufacturer of optical media, has signed a Qflix technology and IP licensing agreement. RITEK is now taking orders on specialized DVDs that will enable the on-demand recording of digitally distributed entertainment with CSS encryption (Content Scramble System) – the same protection found on commercially mass-produced titles. The Qflix DVDs will be used by duplication system operators providing custom DVD publishing services to Internet retailers and in movie kiosks that will offer retail customers touch-screen access to a vast virtual inventory of rich content. The Qflix media will also be available for consumer use in the home as a way to legally record premium entertainment downloaded from the Internet. Demonstrations of Qflix solutions are available by appointment in Sonic’s private meeting room at the Renaissance Hotel (Copa Conference Suite A and B) during the Consumer Electronics Show (CES), January 7th to the 12th, Las Vegas, NV.

 “We are delighted to be an official manufacturer and distributor of Qflix DVDs and to be participating in the new entertainment value chain Sonic’s technologies are helping to establish,” said Eric Ai, RITEK spokesperson. “Our long-standing reputation for producing discs of uncompromising quality and compatibility will help ensure a consistent and reliable consumer entertainment experience regardless of whether content is ordered online, purchased at retail, or produced in the home.”

 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 "purchase, download, and burn" solutions. Qflix is also the label 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.

 “Our initiative to enable new markets for the efficient distribution of high-quality entertainment continues to gain momentum,” said Jim Taylor, senior vice president and general manager of Sonic Solutions' Advanced Technology Group. “By adding more partners from the consumer electronics, content distribution, and PC and media storage industries, we remain on track to introduce solutions this year that will fundamentally shift the way entertainment is delivered.”

 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 RITEK

By combining the Right Technology at the Right Time with the Right Product, RITEK has earned its name in the high-tech field of storage media. By maintaining an innovative business vision and combining it with a strong commitment to innovation and exceptional customer services, RITEK had successfully become the largest manufacturer of optical storage media in the world.  

 

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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