The press release
PRESS RELEASE
Sonic Solutions Extends its
Leadership Position in the Digital Media Sector with Acquisition of
System OK
New Applications Increase Functionality and Advance Channel Potential of Roxio Product Line in Growing Media Management Market
9 November 2006 - Sonic Solutions(r) (NASDAQ: SNIC), the leader in digital media software, today announced that it has acquired all of the shares of System OK, a software company based in Gothenburg, Sweden. The acquisition expands and complements Sonic's existing Roxio product line of digital media management, creation, and enjoyment tools with the addition of comprehensive system protection, recovery, and backup applications. The extended Roxio product portfolio will help further establish the brand as the choice for a broad range of channel partners including major retailers, e-tailers, OEMs, and resellers.
"We are extremely pleased to make System OK and their exceptional team part of the Sonic Solutions family," said Dave Habiger, president and CEO, Sonic Solutions. "Leveraging the distribution strength, brand awareness and reputation of our Roxio product line, we have the opportunity to expose System OK's outstanding applications to a massive audience and reproduce their regional success on a worldwide scale."
Founded in 2002, System OK has rapidly become a leading vendor of system recovery and media backup software in Northern Europe. System OK software is designed to easily and efficiently solve everyday computer problems at home, at the office, or in the field. Applications, including the award-winning BackOnTrack, provide a fast method to recover a failed system from corruption, virus infection, and faulty software installations, and enable users to immediately restore data lost due to accidental file deletion or system corruption.
"We are thrilled to have the opportunity to bring our next-generation system and media protection products to a broader audience," said Alexander Hars, founder and managing director, System OK. "This is a great way for System OK to leverage its technology and know-how. Our applications fit extremely well into the broader Sonic product strategy and create a one-stop shop for home and business users looking for the most expansive suite of digital media tools."
Comprehensive system recovery and media backup solutions have wide industry appeal as users become increasingly reliant on computers to store critical documents and precious photo, video, and music libraries. For IT departments, System OK solutions can limit downtime caused by system failure and substantially reduce support costs by eliminating the hours spent diagnosing problems, reinstalling software and re-imaging failed systems. In the case of PC manufacturers, pre-installed System OK software can also dramatically decrease post-sale technical support.
"System and data loss not only creates massive problems for PC users, but also is a significant cost driver for PC manufacturers," continued Mr. Hars. "Working with the support divisions of global PC OEMs, we determined that the inclusion of System OK could save approximately $4 of technical support costs per year on every PC sold. With home and business users placing greater value on the content resident on their PCs, system recovery and protection will be a major value driver for PC OEMs."
About System OK
System OK (http://www.systemok.com) builds state-of-the-art recovery and backup software to save home and business users in case of computer crash, virus infection or loss of files. System OK is a privately held company founded in April, 2002, by Alexander Hars and Lars Karlsson; both with an engineering background from Chalmers University of Technology.
About Sonic Solutions
Sonic Solutions (NASDAQ: SNIC) 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.
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, and Roxio are trademarks or registered trademarks of Sonic Solutions in the United States and/or other countries. All other company or product names are trademarks or registered trademarks of their respective owners.
Forward Looking Statements
The above paragraphs of this press release may contain forward looking statements that are based upon current expectations, including views regarding future market opportunities and the potential benefits of our acquisition of System OK. 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 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, 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. The Company does not undertake to update any forward looking statements.
New Applications Increase Functionality and Advance Channel Potential of Roxio Product Line in Growing Media Management Market
9 November 2006 - Sonic Solutions(r) (NASDAQ: SNIC), the leader in digital media software, today announced that it has acquired all of the shares of System OK, a software company based in Gothenburg, Sweden. The acquisition expands and complements Sonic's existing Roxio product line of digital media management, creation, and enjoyment tools with the addition of comprehensive system protection, recovery, and backup applications. The extended Roxio product portfolio will help further establish the brand as the choice for a broad range of channel partners including major retailers, e-tailers, OEMs, and resellers.
"We are extremely pleased to make System OK and their exceptional team part of the Sonic Solutions family," said Dave Habiger, president and CEO, Sonic Solutions. "Leveraging the distribution strength, brand awareness and reputation of our Roxio product line, we have the opportunity to expose System OK's outstanding applications to a massive audience and reproduce their regional success on a worldwide scale."
Founded in 2002, System OK has rapidly become a leading vendor of system recovery and media backup software in Northern Europe. System OK software is designed to easily and efficiently solve everyday computer problems at home, at the office, or in the field. Applications, including the award-winning BackOnTrack, provide a fast method to recover a failed system from corruption, virus infection, and faulty software installations, and enable users to immediately restore data lost due to accidental file deletion or system corruption.
"We are thrilled to have the opportunity to bring our next-generation system and media protection products to a broader audience," said Alexander Hars, founder and managing director, System OK. "This is a great way for System OK to leverage its technology and know-how. Our applications fit extremely well into the broader Sonic product strategy and create a one-stop shop for home and business users looking for the most expansive suite of digital media tools."
Comprehensive system recovery and media backup solutions have wide industry appeal as users become increasingly reliant on computers to store critical documents and precious photo, video, and music libraries. For IT departments, System OK solutions can limit downtime caused by system failure and substantially reduce support costs by eliminating the hours spent diagnosing problems, reinstalling software and re-imaging failed systems. In the case of PC manufacturers, pre-installed System OK software can also dramatically decrease post-sale technical support.
"System and data loss not only creates massive problems for PC users, but also is a significant cost driver for PC manufacturers," continued Mr. Hars. "Working with the support divisions of global PC OEMs, we determined that the inclusion of System OK could save approximately $4 of technical support costs per year on every PC sold. With home and business users placing greater value on the content resident on their PCs, system recovery and protection will be a major value driver for PC OEMs."
About System OK
System OK (http://www.systemok.com) builds state-of-the-art recovery and backup software to save home and business users in case of computer crash, virus infection or loss of files. System OK is a privately held company founded in April, 2002, by Alexander Hars and Lars Karlsson; both with an engineering background from Chalmers University of Technology.
About Sonic Solutions
Sonic Solutions (NASDAQ: SNIC) 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.
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, and Roxio are trademarks or registered trademarks of Sonic Solutions in the United States and/or other countries. All other company or product names are trademarks or registered trademarks of their respective owners.
Forward Looking Statements
The above paragraphs of this press release may contain forward looking statements that are based upon current expectations, including views regarding future market opportunities and the potential benefits of our acquisition of System OK. 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 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, 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. The Company does not undertake to update any forward looking statements.
