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Completing Rio's Radical New Line of Sport and Flash Players, the S50 and S35S Offer Users Powerful Memory, Features, Easy-to-Use Rio Music Manager Software and Long Battery Life

The new Rio S50 is the ultimate digital music player. With 128 MB of built in memory, the S50 gives users up to four hours of continuous music listening. Plus, the S50's memory is upgradeable to 256 MB, giving users the ability to store even more of their favorite music. In addition to its sizeable memory, the Rio S50 comes loaded with useful features including a large backlit screen, a clock and stopwatch, an integrated FM tuner, a useful carrying case and an impressive battery life of up to 35-hours.

Designed to meet the needs of today's athlete, the S35S combines a sleek new design and a rugged, durable shell, with the memory and features of a powerful digital music player. Made to withstand the rigors of an extreme workout, the S35S lightweight design allows users to easily strap the player to their arm during workouts and its sturdy construction and rubberized shell makes the player strong and durable. The S35S features 128MB of built in memory giving users up to four hours of continuous music listening and is easily upgradeable to 256 MB. The S35S also contains a long list of features, including a large back lit screen, clock and stopwatch, integrated FM tuner, and an adjustable armband.

"With the addition of these impressive players to our already diverse product line, SONICblue is able to offer a player that meets the needs of all consumers," said Ed Brachocki, vice president of product marketing audio and video products, SONICblue. "The powerful memory, diverse feature set, and user friendly software of these new players will make the digital music experience better than ever for today's music enthusiasts."

Included with Rio's new line of players is the new Rio Music Manager software. This innovative and user friendly software delivers a simple and easy to navigate interface, making transferring of MP3 and WMA files from a PC to a Rio digital music player quicker and easier than ever. Rio Music Manager software also contains an advanced and easy to navigate database, allowing users to store all their music and easily sort by artist, album or genre. In addition, the Rio Music Manager software also allows users to name and create their own playlists and incorporates an ID3 tag editor to help update the titles on their playlists.

Both players support MP3 and WMA formats and, as with all of SONICblue's Rio flash memory players, the S50 and S35S are compatible with both PC and Mac® computers and ship with customized software for each platform.

Rio S50 Pricing, Availability and Features

The new Rio S50 player ($179.99 MSRP) will be available soon on SONICblue's eStore (www.sonicblue.com) and in retail outlets throughout North America. Key features of the Rio S50 include:

• 128 MB of built in memory holds up to four hours of your favorite music.
• Upgradeable memory allows users to increase the memory to 256 MB simply by adding a standard MMC memory card.
• 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. Or up to 20 hours with the included rechargeable battery.
• No Moving Parts the S50 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 S50 easier than ever.
• Bundled RealOne® Player and iTunes(TM) music management software ensures that your S50 is PC and Mac® compatible out of the box.
• Software Upgrades allow users to download software upgrades to support future digital audio formats and keep your Rio S50 up to date.

Rio S35S Pricing, Availability and Features

The new Rio S35S player ($199.99 MSRP) will be available soon on SONICblue's eStore (www.sonicblue.com) and in retail outlets throughout North America. Key features of the Rio S35S include:

• 128 MB of built in memory holds up to four hours of your favorite music.
• Upgradeable memory allows users to increase the memory to 256 MB simply by adding a standard MMC memory card.
• 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.
• Adjustable Armbands allow users to easily attach the S35S to their arm.
• Up to 15-Hour Battery Life on one AAA alkaline battery.
• No Moving Parts the S35S 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 S35S easier than ever.
• Bundled RealOne® Player and iTunes(TM) music management software ensures that your S35S is PC and Mac® compatible out of the box.
• Software Upgrades allow users to download software upgrades to support future digital audio formats and keep their Rio S35S up to date.
• (1) 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 S35S and S50 on SONICblue's e-store and at retail, SONICblue's ability to meet the needs of all consumers via its digital audio player line, the S35S and S50's ability to make the digital music experience better than ever for today's music enthusiasts, the features, benefits and pricing of the Rio S35S and S50, and the ability of consumers to download software upgrades to support future digital audio formats and keep the Rio S35S and S50 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 December 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.

Note to Editors: 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)
     ir@sonicblue.com