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Players Represent First Phase of Rio's Groundbreaking New Sport and Flash Lines

The S10 is the next generation of Rio's portable music player line. It offers 64 MB of memory, giving users up to two hours of listening, and is upgradeable to 192 MB of storage. In addition to this sizeable memory, the Rio S10 comes loaded with useful features including a large backlit screen, a clock and stopwatch, a useful carrying case and an impressive battery life of up to 35 hours.

Targeted toward the sports enthusiast, the S30S is lightweight and durable and built to withstand the rigors of an extreme workout. The player also offers 64 MB of memory, upgradeable to 192 MB of storage, a large back lit screen, a clock and stopwatch. In addition, the S30S also offers an integrated FM tuner, and an adjustable armband.

"The S10 and S30S will strengthen SONICblue's position as the market leader in portable compressed music devices," said Ed Brachocki, vice president of product marketing audio and video products, SONICblue. "These new Rio products use the latest technologies to provide consumers demonstrable benefits -- great sound, smaller size, dramatically longer battery life, easier to use software -- in attractive styles at popular prices."

Both players support MP3 and WMA formats and, as with all of SONICblue's Rio players, the S10 and S30S are compatible with both PC and Mac computers and ship with customized software for each platform.

Rio S10 Pricing, Availability and Features

The new Rio S10 ($129.99 MSRP) player will be available soon on SONICblue's eStore (www.sonicblue.com) and in retail outlets throughout North America. Key features of the Rio S10 include:

• 64 MB of built in memory holds up to two hours of your favorite music.
• Upgradeable memory allows users to increase the memory to 192 MB simply by adding a standard MMC memory card (available separately).
• Supports MP3 and Windows Media (WMA) giving users the freedom to choose the music quality and playtime that they desire.
• Clock and stopwatch
• Up to 35-Hour Battery Life on one AA alkaline battery.
• No Moving Parts the S10 does not skip, making it perfect for the toughest workouts.
• Large, Backlit Display gives a clear display of your music and the player's many options.
• Carrying Case allows users to view the LCD and access all of the player controls. The carry case also features a belt clip.
• Adjustable EQ, repeat and shuffle play modes delivers all the features you expect in a top of the line portable music player.
• Rio Music Manager Software makes transferring files to the Rio S10 easier than ever.
• Audio Management Software bundles audio management software for the PC and Mac. With this simple software, you can organize your music and rip your CD collection.
• Software Upgrades allow users to download software upgrades to support future digital audio formats and keep your Rio S10 up to date.

Rio S30S Pricing, Availability and Features

The new Rio S30S ($149.99 MSRP) player will be available soon on SONICblue's eStore (www.sonicblue.com) and in retail outlets all over North America. Key features of the Rio S30S include:

• 64 MB of built in memory holds up to two hours of your favorite music.
• Upgradeable memory allows users to increase the memory up to 192 MB simply by adding a standard MMC memory card (available separately).
• Supports MP3 and Windows Media (WMA) giving users the freedom to choose the music quality and playtime that they desire.
• Clock and stopwatch allows users to time their workouts.
• Up to 15-Hour Battery Life on one AAA alkaline battery.
• Adjustable Armband allows users to easily attach the S30S to their arm.
• No Moving Parts the S30S does not skip, making it perfect for the toughest workouts.
• Integrated FM Tuner allows users to tune into their favorite FM radio stations.
• Large, Backlit Display gives a clear display of your music and the player's many options.
• Carrying Case allows users to view the LCD and access all of the player controls. The carry case also features a belt clip.
• Adjustable EQ, repeat and shuffle play modes delivers all the features you expect in a top of the line portable music player.
• Rio Music Manager Software makes transferring files to the Rio S30S easier than ever.
• Audio Management Software bundles audio management software for the PC and Mac. With this simple software, users can organize their music and rip their CD collection.
• Software Upgrades allow users to download software upgrades to support future digital audio formats and keep their Rio S30S up to date.
• Based on NPDTechworld (CHN917 & CHN915P) for unit volumes sold at US retail of mp3 enabled portable audio players (aggregate of flash, hard disk driver and CD units) for Rio and psa-play branded products in calendar years ended 2000 & 2001.

About SONICblue Incorporated

SONICblue is a leader in the converging Internet, digital media, entertainment and consumer electronics 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 has significant global marketing capabilities and a focused technology portfolio that includes Rio® digital audio players; ReplayTV® personal television technology and software solutions; and Go-Video® Dual-Deck(TM) VCRs and integrated DVD+VCRs.

Except for the historical information contained herein, the matters set forth in this press release, including, but not limited to, statements regarding the expected availability of the Rio S10 and S30S on SONICblue's e-store and at retail, the S10's and S30S's ability to strengthen SONICblue's position as the market leader in portable compressed music devices, the feature benefits and pricing of the Rio S10 and S30S, and the ability of consumers to download software upgrades to support future digital audio formats and keep the Rio S10 and S30S up to date, 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 the ability of the Company, its suppliers, retailers and distributors to meet scheduled release dates, retailers' product marketing decisions, the impact of competitive products and pricing and of alternative technological advances, the ability to obtain licenses to new technology and platforms on terms acceptable to SONICblue, and other risks detailed from time to time in the SEC reports of SONICblue Incorporated, including its annual report on Form 10-K for the period ended Dec. 31, 2001 and its quarterly report on Form 10-Q for the period ended June 30, 2002. These forward-looking statements speak only as of the date hereof. SONICblue disclaims any obligation to update these forward-looking statements.

SONICblue and Dual-Deck are trademarks of SONICblue Incorporated. Rio, ReplayTV and Go-Video are registered trademarks of SONICblue Incorporated. All other products and brand names as they appear in this release are trademarks or registered trademarks of their respective holders. All specifications may be changed without notice.

Contact:

     SONICblue
     Ross Purnell, 408/588-8859 (Press)
     rpurnell@sonicblue.com
     Ian Shea, 408/588-8242 (Investor)
     ishea@sonicblue.com
        or
     The Bohle Company
     Jason Wonacott, 310/785-0515 ext. 211 (Press)
     Jason@bohle.com