Strategic Alliance Between Sonic Foundry and Eveo Announced

SAN FRANCISCO, CA and MADISON, WI MAY 10, 2000 Eveo, Inc., the leading
user-generated video company, and Sonic Foundry (R), Inc., (NASDAQ: SOFO) the
leading developer and marketer of digital media and Internet software tools,
services, and systems, today announced a strategic alliance to provide free
copies of co-branded ACIDXPress software to users who register at
www.eveo.com. Through this alliance, ACID XPress will be distributed both in
CD-ROM and downloadable software. Additionally, registered Eveo users will
have access to a library of over 400 music loops that work in conjunction
with the ACID Xpress software.

This Eveo – Sonic Foundry alliance is very consistent with Eveo’s mission
of democratizing entertainment, and empowering even more people to author and
produce ‘eveos’ –brief (3-minute), original videos– and experiment with
rich media, said Eveo founder and CEO Olivier Zitoun. Music is a key issue
for filmmakers; now anyone can create cool music for a video soundtrack in
minutes on Eveo.com.

The user-generated, rich media content market is growing rapidly, and Eveo
is fast emerging as a leader in this space, said Jeff Conover, vice
president of marketing for Sonic Foundry. We are excited to be partnering
with a company that’s a pioneer in the streaming media and broadband arena.
Eveo’s establishing a compelling new entertainment format, discovering and
incubating the next generation of talented videomakers.

Eveo offers the most comprehensive resource center available to aspiring
video makers, including ‘how-tos’, tutorials, tips on production, shooting
and editing. The free distribution of Sonic Foundry’s ACID Xpress on
Eveo.com is the second in a series of alliances delivering quality editing
and production tools and software to video makers. In April, Eveo and MGI
Software (TSE:MGI) announced an initiative making their MGI’s PC Video
Software VideoWave III, a comprehensive suite of desktop editing tools,
available for free to all registered members on Eveo.com.

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