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Full Speed Ahead for MOD DVDs

Sonic Solutions and Allied Vaughn announced that the companies’ Manufacturing-on-Demand (MOD) program has produced more than one million DVDs.

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Unedited press release follows:

Sonic and Allied Vaughn Increase Manufacturing-on-Demand Reach

Surpasses One Million Disc Milestone and Adds a New Studio Partner

NOVATO, Calif., Dec. 13, 2010 — Sonic Solutions® (Nasdaq: SNIC) and Allied Vaughn today announced the companies’ manufacturing-on-demand (MOD) program has produced more than 1 million discs and provided content creators and distributors with a cost-effective alternative to mass replication. The MOD program, which combines Sonic’s digital ingest and delivery technologies with Allied Vaughn’s highly-efficient disc duplication and fulfillment systems, allows DVDs to be produced at the time of order with the same features, compatibility, and protection as discs that are mass produced. Leveraging Sonic’s Dynamic Content ’621 patent, titles are stored electronically, not physically, which helps eliminate inventory costs and risks, while still enabling entertainment distributors to respond rapidly to changes in consumer demand.

“In partnership with Sonic, we’ve created a financially viable way for content owners to satisfy consumer demands for easy access to a greater range of entertainment,” said Doug Olzenak, President, Allied Vaughn. “The 1 million disc milestone is evidence of the high-quality product manufactured in our state-of-the-art facility and the overall program’s popularity. MOD provides content owners and entertainment distributors with an efficient production system that always matches inventory with demand. Integrating MOD into the sales and production supply chains, helps improve efficiency, while increasing customer satisfaction and sales.”

MGM is the latest studio to leverage the Allied Vaughn manufacturing-on-demand system. MGM plans to release approximately 400 TV shows and movies for on-demand manufacturing over the next 18 months.

“Thanks to our relationship with Allied Vaughn, content owners and retailers can put great titles directly into the hands of consumers with superior economics, and quickly adapt to fluctuations in demand,” said Mark Ely, President of Strategy, Sonic Solutions. “We look forward to providing more content owners and distributors with an efficient inventory management system for delivering content online, in store, through kiosks, or via mail, and expanding our relationship with Allied Vaughn.”

With the ability to burn a customer’s DVD at the time of order, online services always have content in stock. Digital masters of the DVD (Dual-layer DVD-9 and single-layer DVD-5) are stored electronically and can then be burned to DVD, labeled, placed in a full-color DVD case, packaged, and shipped on demand. The resulting DVDs are virtually identical to traditional retail DVDs, offering features, compatibility, and protection similar to mass-produced discs.

About Allied Vaughn
Allied Vaughn is a leading video supply chain management company, and focuses on successfully bridging the worlds of physical and digital media management and distribution.  Their Digital Media Services unit helps clients create powerful interactive content; its Digital Asset Management solution evaluates, aggregates, catalogs and manages rich media libraries for Fortune 500 companies; and its industry-leading MOD technology is the on-demand, zero-inventory choice of an impressive “A-list” of clients, including major Hollywood and Television Studios, Cable Networks , Special Interest, Corporate and Faith Based content publishers.

About Sonic Solutions
Sonic Solutions® (NASDAQ: SNIC) enables digital media from Hollywood to Home. For more than two decades, Sonic products, service, and technology brands including Roxio®, RoxioNow™, DivX®, and MainConcept®, have fueled home entertainment, powered rich digital media functionality on a range of platforms for a variety of partners, and inspired unique personal media experiences for hundreds of millions of consumers. Sonic technologies are now combining to deliver a universal platform for Hollywood Studios, retailers, consumer electronics manufacturers, and PC OEMs that provides consumers instant access to premium entertainment from virtually anywhere. Sonic Solutions is headquartered in Marin County, California.