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Sonic and Macrovision Enter into Licensing Agreement to Enable the Custom Recording of Secure DVDs

Sonic Solutions (NASDAQ:SNIC), the leader in digital media software, and Macrovision Corporation (NASDAQ:MVSN), the leader in digital media protection, today announced a licensing agreement to provide the industry’s first comprehensive content protection solution to enable the custom manufacturing of secure DVDs by retailers, e-tailers and DVD production facilities. The new solution will make it possible for movie studios and other content owners to expand the number of titles in their catalog that are available for purchase by consumers in a variety of channels.

The solution will integrate Macrovision’s RipGuard and ACP technologies into Sonic’s DVD On Demand™ technology solution, which will allow content encrypted with the industry-standard Content Scramble System (CSS) found on mass-replicated DVDs to be recorded directly to optical DVD media. Sonic will license the new combined solution to video publishers and distributors.

With the addition of RipGuard and ACP technologies to Sonic DVD On Demand, Macrovision and Sonic can together enable DVDs on Demand that feature “triple protection” to safeguard against digital ripping and analog and digital copying. This innovation will deliver vital security for content owners who wish to offer consumers more access to niche and “back catalog” content, but have been wary to do so without adequate protection. With this fully protected custom DVD manufacturing solution, content owners can offer DVDs through a variety of existing and new channels, such as online sites and retail kiosks.

“Today DVDs remain the easiest way for consumers to watch movies at home and on the road, but most DVD stores have a limited inventory, which results in lost sales opportunities,” said Rob Enderle, Principal Analyst for the Enderle Group. “What Sonic and Macrovision have done is make it possible to move nearly unlimited and secure DVD libraries incredibly close to potential buyers, opening up new profit opportunities for studios and retail partners that simply were not possible before.”

“Together, Sonic and Macrovision are providing content protection that doesn’t compromise the consumer experience, which is critical for the success of this exciting new business model,” said Fred Amoroso, CEO, Macrovision. “With the RipGuard and ACP technologies now available as part of Sonic’s DVD On Demand solution, studios and retailers will have the ability to deliver more of their movies to consumers using proven, studio-standard protection technology that we have developed and refined over several years.”

Systems equipped with the Sonic and Macrovision solution will produce DVDs that offer the same audio and video quality, features and protection as today’s commercially mass-produced titles. Sonic’s DVD On Demand platform will provide content owners with comprehensive copy protection against analog copying and digital ripping using three industry leading technologies (CSS, ACP and RipGuard) while also maintaining the highest possible playback compatibility with set-top DVD players.

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“Our DVD On Demand manufacturing solution creates a revolutionary new business model that will benefit movie studios, channel partners and consumers alike,” said Jim Taylor, senior vice president and general manager of Sonic Solutions’ Advanced Technology Group. “The synthesis of Sonic and Macrovision expertise means that studios and video publishers can safely and cost-effectively distribute a wider variety of content into existing and new distribution channels.”

The new Sonic and Macrovision solution will be available later this quarter.

About Macrovision’s RipGuard and ACP Technologies
The Macrovision RipGuard technology is the anti-ripping solution preferred by Hollywood studios and used on major DVD releases today. Macrovision ACP is the world’s leading device-to-device analog content protection system, protecting over 4.5 billion DVDs for Hollywood and other rights owners since the format’s introduction. Macrovision ACP closes the analog hole on nearly every DVD player, DVD recorder, PC, and digital video recorder. The combination of RipGuard DVD and Macrovision ACP form a comprehensive DVD protection solution that plugs both the analog and digital holes in a single step.

About Macrovision
Macrovision provides distribution, commerce and consumption solutions for software, entertainment and information content to the home video, PC games, music, cable/satellite, consumer software, enterprise software and information publishing industries. Macrovision holds approximately 240 issued or pending United States patents and more than 1,200 issued or pending international patents, and continues to increase its patent portfolio with new and innovative technologies in related fields. Macrovision is headquartered in Santa Clara, California, U.S.A. with other offices across the United States and around the world. More information about Macrovision can be found at http://www.macrovision.com.

About Sonic’s DVD On Demand
Sonic’s comprehensive DVD On Demand technology platform for the manufacturing industry enables, for the first time, the custom production of DVDs that deliver the quality, features and industry-approved Content Scramble System (CSS) encryption identical to today’s commercially mass-produced titles, in addition to Macrovision’s proven anti-piracy solutions. The affiliated patent licensing and certification program enables drive, media, and authoring system manufacturers to create high quality, compatible, and reliable custom DVD manufacturing solutions.

About Sonic Solutions
Sonic Solutions (NASDAQ:SNIC; http://www.sonic.com) is the leader in digital media software, providing a broad range of interoperable, platform-independent software tools and applications for creative professionals, business and home users, and technology partners. Sonic’s products range from advanced DVD authoring systems and interactive content delivery technologies used to produce the majority of Hollywood DVD film releases, to the award-winning Roxio — branded CD and DVD creation, playback and backup solutions that have become the premier choice for consumers, prosumers and business users worldwide.

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Sonic products are globally available from major retailers, online at Sonic.com and Roxio.com, and are bundled with PCs, after-market drives and consumer electronic devices. Sonic’s digital media creation engine is the de facto standard and has been licensed by major software and hardware manufacturers, including Adobe, Microsoft, Scientific-Atlanta, Sony, and many others. Sonic Solutions is headquartered in Marin County, California.

Sonic, the Sonic logo, Sonic Solutions, DVD On Demand and Roxio are trademarks or registered trademarks of Sonic Solutions in the United States and/or other countries. Macrovision and RipGuard are registered trademarks or trademarks of Macrovision Corporation. All other brands and product names and trademarks are the registered property of their respective companies.

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