Sonic Solutions and MOD Systems Align to Link Kiosk and Online Entertainment Delivery Platforms

NOVATO, Calif., and SEATTLE, June 8 /PRNewswire-FirstCall/ -- Sonic Solutions® and MOD Systems today announced a strategic partnership that intends to arm retailers with a complete, multi-platform system for digitally delivering premium entertainment. The system will integrate RoxioNow™, Sonic's platform for the over-the-top Internet delivery of entertainment to connected devices, with MOD Systems' solution for self-service digital download kiosks. Participating retailers would be able to provide consumers' convenient in-store and connected-device options for purchasing digital film and television titles that can be easily accessed and enjoyed from a wide range of devices including PCs, laptops, Blu-ray Disc players, HDTVs, and smart phones. Sonic and MOD Systems will announce additional details of their initiative later this year, pending the securing of appropriate license rights from content owners.

"Today consumers have a variety of physical and digital entertainment purchase options, both in-store and online, but without a bridge that connects them together," said Anthony Bay, Chairman and CEO of MOD Systems. "Together with Sonic, we're taking a major step toward meeting the long-standing vision of the entertainment industry by giving consumers easy access to digital entertainment whether in-store, online, at home, or on the go, all sold and supported by the retailer brands consumers trust."

The integrated solution supports approved digital content distribution standards, and is being designed to be compatible with Digital Entertainment Content Ecosystem (DECE), an industry consortium developing a digital content distribution ecosystem that will provide consumers with an easy way to access, purchase and play digital content.

"DECE's goal is to deliver protected content in such a way that consumers enjoy a 'Buy Once, Play Anywhere' experience," said Mitch Singer, President of DECE. "By participating in DECE, aligning their digital platforms with the framework of DECE, and preparing for the eventual adoption of the DECE specifications, Sonic and MOD are taking a step that will benefit consumers."

The companies' combined solution would allow retailers to offer consumers access to a wide array of digital entertainment for purchase from online digital download and streaming storefronts, as well as self-service, touch-screen kiosks that load to Secure Digital (SD) memory cards. Consumers will have the flexibility to play the content, including new movie releases and next-day television shows, at home and on the go. Content on SD cards from kiosks is delivered in the GreenPlay™ format, which can be played on any Windows PC and a growing number of GreenPlay-compatible consumer electronics devices. Entertainment from online storefronts will be streamed or downloaded to portable and connected devices through the RoxioNow entertainment platform.

"While we've seen a significant increase in the number of consumers embracing over-the-top video services, many still turn to physical storefronts as their destination for entertainment," said Dave Habiger, President and CEO, Sonic Solutions. "Leveraging kiosks to provide an in-store way for consumers to purchase entertainment in a digital form will help educate more consumers to the convenience and flexibility digital entertainment can afford them."

The Sonic and MOD Systems integrated approach will offer many benefits to retailers and studios. The solution will support both retailer and studio migration to digital content sales, while preserving valuable retail shelf space for new optical formats like Blu-ray Disc, and higher margin products. The combined technologies can also enable retailers to integrate customer accounts and deliver additional services with the retailer's brand at the core.

This new initiative extends the Sonic and MOD Systems partnership established in late 2009 with the joint development of the GreenPlay Media Player, based on the Roxio CinePlayer® software, using the MOD Systems GreenPlay SDK. The GreenPlay SDK, introduced in January 2010, enables software developers and device manufacturers to easily add GreenPlay support to software programs, portable media players, set-top-boxes, Blu-ray Disc players, and televisions.

About Sonic Solutions

Sonic Solutions® (Nasdaq: SNIC) is powering the digital media ecosystem through its complete range of Hollywood to Home™ applications, services, and technologies. Sonic's Roxio products enable consumers to easily manage and enjoy personal media and premium Hollywood entertainment on a broad range of connected devices. A wide array of leading technology firms, professionals, businesses, and developers rely on Sonic to bring innovative digital media functionality to next-generation devices and platforms. Sonic Solutions is headquartered in Marin County, California.

About MOD Systems

MOD Systems' Retail Digital Entertainment Platform enables retailers to deliver digital entertainment to consumers through self-service, touch-screen kiosks. Consumers can purchase or rent from a vast assortment of always-in-stock new release and catalog video titles and MP3 tracks, and download videos to re-useable Secure Digital (SD) memory cards and music to flash drives. The company's growing entertainment catalog includes licenses for nearly 4,000 major and independent movie titles and television programs, and more than five million music tracks. MOD Systems takes a digital content lifecycle management approach by seamlessly bridging physical, digital, in-store, and online, to the benefit of the entire content value chain. The company is a member of Digital Entertainment Content Ecosystem (DECE) and The Digital Entertainment Group (DEG). MOD Systems is headquartered in Seattle, with offices in Los Angeles and Tokyo. More information is online at www.modsystems.com.

Forward Looking Statements

This release may contain forward looking statements that are based upon current expectations, including the launch, distribution, and market acceptance of the collaboration between Sonic Solutions and MOD Systems. Actual results could differ materially from those projected in the forward looking statements as a result of various risks and uncertainties, including those discussed in Sonic Solutions' annual and quarterly reports on file with the Securities and Exchange Commission. This press release should be read in conjunction with Sonic Solutions' most recent annual report on Form 10-K, Form 10-Q and other reports 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 Solutions does not undertake to update any forward looking statements.

Sonic, the Sonic logo, Sonic Solutions, Roxio, RoxioNow, and Hollywood to Home, are trademarks or registered trademarks owned by Sonic Solutions in the United States and/or other countries. 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.MOD Systems is a registered trademark of MOD Systems Incorporated. Sonic Solutions is a registered trademark of Sonic Solutions, Inc. All product and company names mentioned herein may be trademarks of their respective owners in the U.S. and other countries.

SOURCE Sonic Solutions