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This
type of automated rich media enterprise provides a tremendous advantage for
any business facing the challenges of a knowledge-driven workforce that 's
become increasingly distributed and mobile.

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PRESS RELEASE 'Brothers In Arms': Enhanced Reissue Celebrates 20th Anniversary of Landmark Album

What used to take the resources and intensity of launching
the space shuttle is now something we do on a daily basis with little thought
or effort., Siebel Systems has more than 5,000
employees worldwide. It
features a multi-channel capture appliance plus a suite of server software
tools.

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His concert
performances include several songs from "Brothers In Arms.

Siebel Systems Strengthens Web-Based Communications Using Sonic Foundry's Mediasite

"Rich media is the most powerful and cost-effective way to communicate
with a distributed workforce , and Mediasite increases the effectiveness, speed
and frequency with which we can deliver our messages throughout our global
base," said Mark Sunday, Senior Vice President, Information Technology and
Chief Information Officer, Siebel Systems. The availability of
Mediasite recordings on-demand not only provide the conveniences of
anytime/anywhere access, but a synchronized slide index lets users quickly
navigate to and replay the exact portion of a presentation they need, rather
than watching sequentially.

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Released in the summer of 1985, the Grammy Award-winning "Brothers In
Arms" was produced by Dire Straits' founder Mark Knopfler and Neil
Dorfsman, topping the American charts for nine consecutive weeks.sonicfoundry.

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has made Mediasite(TM) its rich media technology of
choice to drive and enhance its corporate communications.2 million
live users at more than 4,000 organizations worldwide who use Siebel's
customer-facing solutions to drive increased profitability and customer
satisfaction, while reducing operating costs.

About Sonic Foundry(R), Inc . The company's high-
performance rich media presentation systems are trusted by Fortune 500
companies , education institutions and government agencies for a variety of
critical communication needs.

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The album continued to top
charts throughout 1986 as Dire Straits played over 200 dates worldwide that
year."

"Brothers In Arms" selections are as follows: "So Far Away," "Walk Of
Life," "Your Latest Trick," "Why Worry," "Ride Across The River," "The
Man's Too Strong," "One World" and "Brothers In Arms," and includes a
special guest performance by Sting on "Money For Nothing. Rich media incorporates audio, video and supporting slides or
other graphic data that are synchronized and streamed over the Web in a live
or on-demand fashion. "We've been using rich media for
about five years and Mediasite for the last two.com.

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"Brothers In Arms" will be made available on a double-sided compact disc,
with the original stereo recording on one side and on the other, a DVD-A
5.

Knopfler , whose latest solo album "Shangri-La" is available on Warner Bros. Siebel Systems has deployed three Mediasite Rich Media
Recorders across its enterprise to date."
Sonic Foundry's Mediasite system , based on exclusive real-time rich media
technology first introduced to the market three years ago , is a complete
platform for recording, managing and publishing rich media content. Because such
forward-looking statements include risks and uncertainties, actual results may
differ materially from those expressed in or implied by such forward-looking
statements.

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"With Mediasite, vital briefings
and best practices originating in one part of an organization can instantly be
captured and shared to whomever, wherever and whenever they're needed.

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Records on August 16th.
Records, is currently in the midst of a world tour. Mediasite's automated workflow allows organizations to rapidly record
and share rich media content from meetings and presentations without any
special preparation, costly production or complex authoring.

Certain statements contained in this news release regarding matters that
are not historical facts may be forward-looking statements. Factors that could cause actual results to differ materially
include, but are not limited to, uncertainties pertaining to continued market
acceptance for Sonic Foundry's products, its ability to succeed in capturing
significant revenues from media services and/or systems, the effect of new
competitors in its market, integration of acquired business and other risk
factors identified from time to time in its filings with the Securities and
Exchange Commission.

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(Nasdaq: SOFO), a leader in automated rich media solutions, today announced
Siebel Systems, Inc."
Headquartered in San Mateo, Calif.

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1 Surround Sound mix.
Siebel uses both the rack-mountable Mediasite RL and the fully portable
Mediasite ML supported with a Mediasite LX Rich Media Server to record
large-scale, executive -level corporate communications.
Siebel also leverages Mediasite's instant on-demand capability to deliver
training across its marketing and sales departments.
"Siebel Systems is the perfect example of a global corporation that is
harnessing the power of rich media to keep pace with today 's dynamic
communications and overall business needs," said Rimas Buinevicius, Chairman
and Chief Executive Officer, Sonic Foundry. Mediasite works
seamlessly with existing AV and presentation technologies to immediately
expand any organization's rich media communication possibilities.

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Content is accessible
to its employees and other stakeholders, both live and as-needed.

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Mediasite allows
Siebel Systems , the leading provider of customer-facing solutions, to leverage
the power of online rich media to communicate more frequently, effectively and
conveniently across its extended enterprise, ultimately improving business
productivity. Such
flexibility allows all employees, regardless of location or conflicting
schedules, to participate in monthly CEO reports and other timely executive
updates , which now are delivered with greater clarity, frequency and
convenience than ever before.

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"Brothers In Arms," the album that earned Dire
Straits international renown, is being reissued in a special 20th
Anniversary Edition by Warner Bros., Sonic Foundry(R) Inc. Its broad customer base includes more than 3. Meanwhile, the mobile Mediasite ML easily
transports to locations around the world to capture international events,
including the Siebel User Week Conference held earlier this year in Spain. For
more information about Sonic Foundry, visit the company's Web site at
http: //www.

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Sonic Foundry's automated
rich media system represents a quantum leap in terms of efficiency , simplicity
and reliability. Sonic Foundry is based in Madison, Wis.

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It was
the best-selling album of the decade in the UK, going on to rack up sales
of over twenty-nine million copies worldwide .
Founded in 1991, Sonic Foundry (Nasdaq: SOFO) is a provider of automated
rich media communications technology for the enterprise.

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Mediasite Delivers on Promises of Rich Media Communications to Fuel Business
Productivity Through Rapid and Flexible Access to Vital Briefings

MADISON, Wis.

Further,
because there are no content or seat licensing fees, users can present as
often as needed , to as many people as needed, without incurring additional
costs.

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The 20th Anniversary Edition package features the
original artwork and song selection, including such era-defining hits as
"Money For Nothing," "Walk Of Life" and "So Far Away.