NOVATO, Calif.--(BUSINESS WIRE)--Aug. 13, 1998--Sonic Solutions (NASDAQ:SNIC - news) announced today the widespread use of its DVD production systems to prepare DVD-based kiosk applications for companies such as BMW, Lucent Technology, Mattel, Sam's Club, The Fire Museum of Memphis and many others.

Working in concert with major interactive kiosk developers and post-production facilities including Advanced Media Concepts, C&C Interactive, Chicago Recording Company, Rainmaker, RISE Int'l, Videolab, Zuma Digital and others, Sonic Solutions has created powerful DVD production tools that allow developers to create a richer, more interactive kiosk experience using the DVD-Video format -- multi-angle video, complex navigation scripting, instant project proofing and fast project multiplexing.

Developing content for the kiosk market requires production tools with the power to enable a wide range of highly interactive applications -- from in-store looping videos to interactive sales pieces. Sonic DesktopDVD(TM), the first system designed specifically for corporate applications, makes it possible for developers to approach kiosk design in an intuitive and graphical way, allowing them to create titles which can be played on a standard DVD player, yet provide the richness and interactivity of traditional computer-based CD-ROM.

``Kiosks should not be tied down to proprietary systems that are expensive and hard to maintain,'' said Mark Ely, director of product marketing at Sonic Solutions. ``The DVD format makes it easier for kiosk developers to create interactive content that packs more audio and video punch than older CD-ROM-based technologies and plays on low-cost playback systems.''

The Fire Museum of Memphis Turns to DVD for Exhibits That Deliver All the Heat

When the board of directors for The Fire Museum of Memphis (FMOM) began their work of converting the oldest firehouse in town into a museum, they wanted it to be more than just a Fireman's equipment shrine. It was their desire to not only relate the history of the Memphis Fire Department and honor those sacrificed in the line of duty, but to also educate citizens on fire safety.

The FMOM contracted RISE Int'l., a leading multimedia production facility based in Fort Worth, Texas, to develop interactive kiosks that would make the learning experience enjoyable enough that visitors would return again and again. With an eye to the future, the museum decided to use DVD for the majority of their video exhibits. The installation was designed to allow a single DVD title to be used for 11 individual kiosks, each with a completely different message. The quality of the video and the quick access made DVD a logical choice.

Working with Sally Corporation, a company specializing in animatronic entertainment systems, RISE combined DVD technology with character robotics to create a novel and compelling kiosk experience for the museum's visitors. The exhibit's first kiosk installation features an animatronic horse in conversation with the museum's mascot, ``Hydro,'' an animated fire hydrant, on an adjacent monitor.

The interaction between the horse and mascot is conveyed by the video and audio data on the DVD disc, and a DVD-based timecode track synchronizes the horse's jaw movements with its associated audio. All of the control information, as well as video and audio material, is provided by a single DVD player rather than the multiple laserdisc players previously required.

With the success of the project, FMOM is considering releasing copies of the interactive DVD to those attending the museum. ``Not only is the developed content easy to set up and play in a kiosk environment,'' said Larry Johnson, president of RISE, ``the same content can be played by anyone with a DVD player -- teachers, parents and even young children. DVD now makes it possible and easy to take the message home.''

RISE used Sonic DVD Creator because it provides a complete system for DVD kiosk production. ``Kiosk exhibits have traditionally been hard to develop for,'' said Bob Sivley, CEO of RISE. ``They either required specialized and expensive hardware for playback or proprietary authoring tools for development. With Sonic DesktopDVD, we have an affordable authoring and development tool that allows us to create even the most challenging interactive tiles for kiosks.''

BMW Uses DVD to Promote Its Hottest Newcomer, the Z3

New York-based Zuma Digital has produced numerous kiosks and industrial projects powered by DVD. To highlight BMW's ``Z3'' national ad campaign, Zuma created a DVD-based three-kiosk installation for attendees of the most recent VH1 Fashion Awards. Using leading-edge 3-D display technology and multiple composited DVD streams, the company was able to create 3-D images without requiring 3-D viewing glasses. The installation has also been used on a national travelling BMW road tour.

``Sonic DVD Creator offered us the flexibility to create a high-quality, sophisticated installation on an extremely tight deadline,'' said David Anthony, CEO of Zuma Digital. ``With only three weeks to re-edit the original D1 material, integrate the show control system, and complete DVD production, we were able to provide an exceptional solution for BMW. Our use of DVD Creator allowed them to tap into the DVD format's power to deliver interactivity and the highest-quality video and audio without having to resort to a cost-prohibitive digital video disc recorder system.''

DVD Kiosks Become Widespread

In addition to RISE Int'l and Zuma Digital, many other corporations, kiosk developers and post-production facilities are producing DVD kiosks:

--   Advanced Media Concepts (AMC), New York: For Lucent Technology,
     AMC is currently developing a multimedia videowall using DVD
     technology as its video source. The videowall will be used at
     Lucent's Conference Center located in Whippany, New Jersey and
     features a marketing demonstration that highlights the company's
     range of global services.

--   C&C Interactive, Sweden: For the Nordic Trotting Museum, a newly
     opened attraction catering to equestrians and trotting
     enthusiasts, C&C produced a DVD installation designed to educate
     visitors about horses and the evolution of trotting and racing.
     The DVD, containing over 120 minutes of video, features the
     greatest trotting races in the world, as well as historical
     footage of Sweden's most renowned trotting tracks.

--   Chicago Recording Company (CRC), Chicago: CRC recently completed
     a DVD kiosk project for Sam's Club, one of the nation's largest
     warehouse retailers. DVD-run kiosks presenting a menu of Sam's
     Club products and services were installed in approximately 500
     warehouse locations throughout the United States.

--   Rainmaker Digital Pictures, Vancouver: For BC Hydro, Rainmaker
     produced a DVD-based display used at their power plants to inform
     and educate visitors on their products and services. A second DVD
     kiosk featuring the world of whales was installed at the
     Vancouver Aquarium.

--   Videolab, Spain: For the Portugal World Expo '98, Videolab
     produced an interactive DVD display that instructs and informs
     visitors on the world's oceans and seas.

About Sonic DesktopDVD

Targeted at video professionals who create corporate video, training and multimedia video productions, Sonic DesktopDVD is a single workstation which provides all of the tools needed to create DVD-Video and DVD-ROM content. DesktopDVD includes real-time MPEG-2 variable bit-rate and constant bit-rate video encoding, Dolby Digital stereo audio encoding and editing, DVD-Video authoring and formatting, and complete DVD-Video proofing.

About Sonic Solutions

Based in Novato, Sonic Solutions designs and manufactures tools to assist video, audio and multimedia professionals in preparing music, video, film, graphics and entertainment software. SonicStudio(TM) is the leading digital audio workstation used around the world by audio professionals to prepare recorded sound for release on Digital Audio Compact Disc, as well as to prepare sound for film and video soundtracks and for broadcast on radio and television.

Sonic DVD Creator is the leading professional system for producing content for the DVD format, and has been used to create hundreds of DVD titles worldwide. Sonic has been a leader in advancing DVD technology and is a full voting member of the DVD Forum -- the standards-setting body for the DVD format. Sonic's home page is http://www.sonic.com.

The above paragraphs of this press release contain forward looking statements that are based upon current expectations. Actual results could differ materially from those projected in the forward looking statements as a result of various risks and uncertainties including, among others, the timely introduction and acceptance of new products, costs associated with new product introductions, the transition of products to new hardware configurations and platforms and other factors, 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 and quarterly report on Form 10-Q 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.

Sonic, Sonic Solutions, the Sonic logo, DesktopDVD, DVD Creator, DVD PrePlay, DVD Producer, DVD Production Alliance, DVD Studio and Sonic Studio are trademarks of Sonic Solutions. All other company or product names are trademarks of their respective owners. Specifications, pricing and delivery schedules are subject to change without notice.

     Sonic Solutions
     Paul Lefebvre, 415/893-8000
     [email protected]