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New Rio 800 Model is the First Shipping 128MB Player On the Market

The industry's first shipping 128MB player, the new Rio 800 model can hold up to four hours of music and sells for $299, while the Rio 600 64MB can hold up to two hours of music and retails for $219. Both players also have an upgraded software bundle featuring an enhanced version of RealNetwork's RealJukeBox for copying, downloading and managing digital audio tracks.

``Our customers have told us that they want players that hold more music and are bundled with more advanced PC software, and we've listened,'' said Jim Cady, president of Rio. ``The new Rio 800 and Rio 600 models double in music capacity and feature RealNetwork's popular and easy to use music management software. Adding to Rio's already unmatched selection of portable players, these new models -- carrying more music and better functionality -- highlight why Rio remains the number one consumer choice for digital audio technology.''

The move to increase storage capacity in Rio's most popular products comes a month after the release of the Rio 800 Extreme, the industry's largest-capacity, palm-sized portable player. Holding 12 hours of music and selling for $599, the Rio 800 Extreme is a limited edition player that is available only through SONICblue's eStore (www.SONICblue.com).

About the Rio 800 128MB and Rio 600 64MB

These new models continue to support Rio's Backpack technology for further memory expansion, and both new players retain Rio's award winning features, including the ergonomic shape, large display, MP3 and WMA support, as well as the flexibility to support other emerging music formats. Each package comes with high-quality earphones, a USB cable, audio management software for PC or Macintosh and a user's guide. The Rio 800 also ships with a rechargeable battery and features voice record. More information about accessories for the players can be found at www.riostuff.com

The new Rio 800 128MB and Rio 600 64MB player are available as of today on SONICblue's eStore and will be available shortly in North American retail outlets including Best Buy, Circuit City, CompUSA and Fry's Electronics.

About Rio (www.riohome.com)

Rio, a SONICblue company, is a pioneer and acknowledged leader in digital audio. Focused on delivering a family of digital audio products designed for various lifestyles, Rio is dedicated to engineering superior portable, home and car digital audio products for consumers.

About SONICblue Incorporated (www.SONICblue.com)

SONICblue is a leader in the converging Internet, digital media and consumer device markets. Working with partners that include some of the biggest brands in consumer electronics, SONICblue creates and markets products that let consumers enjoy all the benefits of a digital home and connected lifestyle. SONICblue holds significant financial assets, global marketing capabilities and a focused technology portfolio, that includes Rio® digital audio players, HomeFree(TM) home networking solutions, Diamond(TM) Internet access products and frontpath(TM) Information Appliances.

Except for the historical information contained herein, the matters set forth in this press release, including statements as to the expected availability, features and benefits of the Rio 800 128MB, the Rio 800 Extreme, the Rio 600 64MB and the Real Networks RealJukeBox Plus with which each is bundled, and the expected release of future Rio Backpacks supporting various memory formats, are forward-looking statements within the meaning of the ``safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, but not limited to, manufacturing difficulties, possible delays in the release of other products, the ability of Rio to integrate emerging memory formats with the Backpacks, and other risks detailed from time to time in the SEC reports of SONICblue Incorporated (formerly S3 Incorporated), including its quarterly report on Form 10-Q for the quarter ended September 30, 2000. These forward-looking statements speak only as of the date hereof. SONICblue and Rio disclaim any intention or obligation to update or revise any forward-looking statements.

Note to Editors: SONICblue, HomeFree, Diamond and frontpath are trademarks of SONICblue. Rio is a registered trademark of RioPort, Inc. and is used by SONICblue under license from RioPort, Inc. Other marks referenced herein are the property of their respective owners.

Contact:

     SONICblue Incorporated
     Tracy L. Perry, 408/588-8086 (Investor Contact)
     ir@sonicblue.com
        or
     Porter Novelli
     Erin Emry, 206/727-2880 (Editorial Contact)
     erin.emry@pnicg.com