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To: Patricia Trinchero who wrote (89)5/17/2000 9:34:00 PM
From: Sam  Read Replies (2) | Respond to of 199
 
Thank you for the information. Some very exciting things are about to happen with this company. Doubling customers monthly is not to be regarded lightly: 40 in March (re. Fortune magazine); 80 in April; 160 in May; 320 in June...... As Everett Dirksen once said, "before long that amounts to real money"!



To: Patricia Trinchero who wrote (89)6/15/2000 8:33:00 PM
From: StockDung  Respond to of 199
 
there was NeoPharm (NEO)last April at $10
"This is of similar magnitude to the Time Warner deal. Sony is another major player in films and video games," said Ray Dirks, an analyst with Dirks & Co. in New York. "The fact that Sony will end up with stock is very positive."

Deal with Sony boosts Sonic Foundry shares

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Deal with Sony boosts Sonic Foundry shares Price rises 30% on news; Madison firm will provide software, media consulting

By LEE HAWKINS JR.

of the Journal Sentinel staff

Friday, April 7, 2000

Shares of Sonic Foundry Inc. rose 30% Thursday after the company said it would provide software and media consulting services to Sony Corp.'s Internet business.

Under the deal with Sony Pictures Digital Entertainment, Sony Pictures' Online unit, Sony will buy media software and use Sonic Foundry to help convert audio and video content to a format that can be seen and heard over the Internet.

After the announcement, Sonic Foundry shares closed at $98.438, up $22.938.

As part of the deal, Sony will receive an undisclosed amount of equity in Sonic Foundry in exchange for agreeing to promote Sonic Foundry products. The agreement is similar to a deal Sonic Foundry announced in March with two Warner Bros. Internet ventures.

"This is of similar magnitude to the Time Warner deal. Sony is another major player in films and video games," said Ray Dirks, an analyst with Dirks & Co. in New York. "The fact that Sony will end up with stock is very positive."

Phil Leigh, vice president of Internet and multimedia research at Raymond James Financial Inc., in St. Petersburg, Fla., said that Sony's equity stake will be "less than 50,000 shares" but that the deal is still significant because of Sony's size.

"Sony is a big company, and this Internet division has a lot of content to stream," Leigh said. "They want this unit to focus on leading Sony Corp. into the digital era, so the fact that they have selected Sonic as their preferred vendor is a very strong endorsement."

If Sony owned 50,000 shares, it would be among the company's major shareholders but by no means would have the largest stake. The three largest investors in Sonic Foundry, executives Curtis Palmer and Monty Schmidt, own about 43% of the Madison company, with more than 3.7 million shares.

Sony, based in Tokyo, is building its online businesses. The consumer electronics company yesterday said it will be part of a company being formed to distribute music over the Internet. Last week, it said it plans to unite the U.S. operations of three of its entertainment units to broaden the distribution of its music, games and pictures on the Internet.

Interest in Sonic Foundry grew earlier this year after the company launched a media services division that helps companies stream audio and video over the Internet.

Sonic Foundry, whose shares have risen six-fold over the past 12 months as it has marketed its stock aggressively on Wall Street, stands to benefit as multimedia companies outsource production of Internet content.

Despite its run-up on Wall Street, Sonic has yet to turn a profit, and its executives have declined to forecast exactly when they expects the company to do so.

For its 1999 fiscal year, which ended Sept. 30, Sonic Foundry reported a net loss of $6 million, or $2.11 a share, on sales of $14.8 million, compared with a net loss of $632,000, or 47 cents a share, on sales of $7.5 million during the previous fiscal year.

Bloomberg News contributed to this report.

(Copyright 2000)