Roxio's Napster And Software Divisions To Exceed Second Quarter Guidance
Proposed Sale of Software Division to Sonic Solutions on Track
Santa Clara, California - (September 20, 2004) - Roxio®, a division of Sonic Solutions® (NASDAQ: SNIC), the leader in digital media software, today announced that it expects to exceed prior guidance for both its software and Napster divisions for the second fiscal quarter of 2005.
Napster revenues are expected to be approximately $9 million, ahead of the company's previously issued guidance of $8 million. Roxio software division revenues are expected to be approximately $18 million compared to guidance of $17 million. Roxio expects that combined EPS loss for the quarter will be narrower than current analyst consensus estimates.
"The strength of Napster's results reflects increasing traction in the online music market and a favorable mix toward subscribers. We are excited by numerous near-term business catalysts for Napster including the upcoming consumer launch of, and device support for,
the 'Napster To Go' portable subscription service, along with the full implementation of our partnership with Best Buy," said Chris
Gorog, Chairman and CEO. "Our proposed sale of the Roxio software division is on track to close in the fourth calendar quarter,
pending Roxio stockholder approval and customary regulatory reviews. The successful completion of this proposed transaction will
significantly strengthen Napster's balance sheet and eliminate the need for additional funding for the foreseeable future."
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.
Safe Harbor Statement
Except for historical information, the matters discussed in this press release, in particular matters related to the sale of Roxio's
software division, future revenue for Roxio's Napster division; and Roxio's relationship with strategic partners are forward-looking
statements that are subject to certain risks and uncertainties such as the failure to complete the sale of the software assets, decreased
demand for our products and services; flaws inherent in our products or services; intense competition; failure to maintain relationships
with strategic partners and content providers; general economic conditions and third party claims, that could cause actual results to differ
materially from those projected. Additional information on these and other factors are contained in Roxio's reports filed with the Securities
and Exchange Commission ( SEC ), including the Company's Quarterly Report on Form 10-Q as filed with the SEC on August 9, 2004 , copies of
which are available at the website maintained by the SEC at http://www.sec.gov. Roxio assumes
no obligation to update the forward-looking statements included in this press release.
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.
© 2004 Roxio, Inc. All rights reserved. Roxio, the Roxio tagline, the Roxio logo, Roxio Easy Media Creator, Easy CD & DVD
Creator, Digital Media Suite, Easy CD Creator, PhotoSuite, VideoWave, Toast, Napster, the Napster logo, Napster Light and Napster To Go
are either trademarks or registered trademarks of Roxio, Inc. or its subsidiaries in the United States and/or other countries. All other
trademarks used are owned by their respective owners.