Roxio and YesVideo Partner to Increase Distribution and Market Co-Branded Products

Roxio Makes Minority Investment in YesVideo

Santa Clara, California - (August 29, 2002) - Roxio, Inc. (Nasdaq: ROXI), the Digital Media Company®, provider of the best selling digital media software in the world, announced today it is partnering with YesVideo, the leader in videotape-to-DVD conversion, to jointly develop various marketing and distribution channels, and to share technology licensing. Additionally, Roxio announced it has made a $3 million strategic investment in YesVideo. The Eastman Kodak Company is also an investor in YesVideo.

"Analysts say Americans have 400 million hours of home movies on videotape stored in their closets. By partnering with YesVideo, we are providing our customers with a hassle-free way to convert their tapes to pristine DVDs," said Roxio President and CEO Chris Gorog. "Technology, automation, scalability, and distribution have made YesVideo the clear leader in this emerging market. Through key relationships with Eastman Kodak and Fuji Color Services, YesVideo has already begun rolling out its products worldwide, and is estimated to launch in over 38,000 retail locations in 2002."

Under terms of the agreement, Roxio will have the exclusive right to bundle, market, and distribute YesVideo products online and to certain retailers, including Roxio's existing retail channel partners. In turn, certain Roxio products will be bundled with YesVideo products, expanding Roxio's already strong distribution channels to the traditional photo-finishing channel.

YesVideo President and Chief Executive Officer Sai-Wai Fu said, "Our partnership with Roxio will enable us to grow our distribution channels significantly, while connecting us with the leading brand name in digital media management. Additionally, the strategic investment by Roxio will help YesVideo meet market demand, expand into Europe, and solidify a strategic partnership with a digital media frontrunner."

About YesVideo

YesVideo incorporates best-of-class video engineering into automation software that enables DVD and CD video publishing on demand for consumer and commercial video. Sai-Wai Fu, a pioneer in digital video compression technology, founded the company in 1999. The company operates the largest home video-to-DVD production facility in the world in San Jose, California and operates a sister facility in Tokyo, Japan. The company is located at 2249 Zanker Road, San Jose, CA 95131 and can be reached on the Internet at or by phone at 408-907-7600 or (toll-free) 877-817-5375.

Safe Harbor Statement

The matters discussed relating to Roxio in this press release, in particular matters related to Roxio's OEM relationships, include forward-looking statements that are subject to certain risks and uncertainties, including delays in product development, competition in the software industry, and failure to maintain OEM relationships, 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 Annual Report on Form 10-K as filed with the SEC on July 1, 2002 and Quarterly Report on Form 10-Q as filed with the SEC on November 13, 2002, copies of which are available at the website maintained by the SEC at Roxio assumes no obligation to update the forward-looking statements included in this press release.

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 Roxio's parent company, Sonic Solutions (NASDAQ: SNIC; 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.