Adaptec And RealNetworks To Bring True Music Portability To The Internet

Adaptec And RealNetworks To Bring True Music Portability To The Internet

MILPITAS, Calif. , January 7, 2000 - Adaptec, Inc. (NASDAQ: ADPT) announced it has entered into an agreement with RealNetworks (NASDAQ: RNWK) to provide CD recording functionality for RealJukebox, the Internet's most popular digital music system. This agreement will give more than 21 million RealJukebox users the freedom to make CDs from their custom playlists and listen to them whenever they like on any standard audio CD player.

For Adaptec, the RealNetworks relationship represents a marketing milestone. Gaining access to the tens of thousands of Internet audio fans who use RealJukebox every day is a significant marketing boost and provides Adaptec valuable mindshare among those Internet aficionados. Using the Internet to drive the Easy CD Creator upgrade cycle to the full-featured, higher-performance version of the software is expected to create new revenue opportunities for Adaptec's software business. And providing users access to a range of CD recording solutions and making them aware of CD recording's benefits over other methods of Internet music downloads (such as convenience, ease of use, and portability to standard home and car audio systems) should help grow the overall CD recording market.

Adaptec is the pioneer and leader in managing digital content with audio and video recording software. Its products include the award-winning Easy CD Creator 4 Deluxe, WinOnCD, JustAudio!, SoundStream and Toast 4 Deluxe. Available for immediate download from http://www.real.com, RealJukebox Update 1 will include a beta version of CD recording software based on Easy CD Creator, the industry's leading CD recording software. The 2x CD burning functionality will enable consumers to simply drag and drop music tracks or personal playlists onto a CD-R icon within RealJukebox. If people desire additional functionality for recording CDs, such as data, photo or video, or higher recording speed, they can upgrade to Easy CD Creator 4 Deluxe.

"Our collaboration with RealNetworks will bring CD recording to the masses and make it easy for people to listen to their favorite music any way they want to," said Tom Shea, vice president and general manager of Adaptec's software products group. "Together with our channel partners, this relationship with RealNetworks will make CD recording a household concept and provide Adaptec a new marketing model from which Adaptec and its partners will benefit."

Safe Harbor Statement

This press release contains forward-looking statements regarding Adaptec's CD recording software market share, global position, and opportunities for product sales. These forward-looking statements are subject to risks and uncertainties and actual results could differ materially from these projections due to various factors including, but not limited to, the risks associated with executing marketing relationships, new product introductions by competitors, rapidly changing product preferences by customers, and general economic conditions. For a more detailed discussion of the factors that affect the company's operating results, interested parties should review Adaptec's Annual Report on Form 10-K for the fiscal year ended March 31, 1999.

About Roxio

Roxio, a division of Sonic Solutions, develops and markets the best-selling digital media software in the world. Roxio offers award-winning software products for CD/DVD burning, photo editing and video editing and has an installed base of over 150 million users. Roxio distributes its products globally through strategic partnerships with major hardware manufacturers, through leading retailers, through Internet partnerships and through direct sales at www.roxio.com. Roxio's parent company, Sonic Solutions (NASDAQ: SNIC; http://www.sonic.com) is the leader in digital media software and provides a broad range of software tools and applications for creative professionals, business and home users and technology partners. Sonic's products range from professional DVD authoring systems and interactive content delivery technologies that are used to produce the majority of Hollywood movies released on DVD, to the award-winning Roxio- and Sonic-branded CD and DVD creation, playback and backup applications that have become the premiere solutions for consumers and business users worldwide. Sonic's AuthorScript® is the de facto standard for CD and DVD burning and formatting and has been licensed by major software and hardware manufacturers, including Adobe, Broadcom, Microsoft, Scientific-Atlanta, Sony, and many others. Sonic Solutions is headquartered in Marin County, California.

Sonic, the Sonic logo, Sonic Solutions, Roxio, MyDVD, CineMagic, Plug & Burn, LiveShare, Roxio Easy Media Creator, and AuthorScript are trademarks or registered trademarks of Sonic Solutions or its subsidiaries in the United States and/or other countries. Dolby is a trademark of Dolby Laboratories. All other company or product names are trademarks of their respective owners and, in some cases, are used by Sonic Solutions under license. Specifications, pricing and delivery schedules are subject to change without notice.