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SONICblue Connects People with Entertainment at CES; Brings Future of Connected Entertainment to Users Today

Company Showcases 2003 Innovation Award Honorees: the GoVideo D2730, Rio S35S; Unveils New Products Including the GoVideo DV6430

LAS VEGAS, NV – Jan 9, 2003 –SONICblue™ Incorporated (Nasdaq: SBLU) will introduce eight new products at the International Consumer Electronics Show (CES) in Las Vegas, Jan. 9-12, 2003 in Las Vegas Hilton Suite 2968. These products build on SONICblue’s heritage of innovation, using advanced digital media technology to create not only new products, but also new market categories, furthering the Company’s position on the forefront of entertainment.

“Other companies show slides and discuss the possibilities of what they believe connected entertainment could look like in the future,” said Gregory Ballard, CEO, SONICblue. “We are showing products that consumers can take home today as well as in the future, plug into their network, and, in minutes, experience the reality of truly connected entertainment.”

New product offerings from all three SONICblue brands, Rio®, ReplayTV® and GoVideo®, will be highlighted at CES.

SONICblue’s Rio, the leading brand of portable MP3 players, will unveil prototypes of the company’s next-generation hard-drive, flash-based and CD/MP3 players at CES as well as show the 2003 Innovation Award Honoree, the Rio S35S portable music player.

SONICblue’s GoVideo, the pioneer of dual consumer electronics will feature 2003 Innovation Award Honoree, the D2730 networked DVD player, as well as forthcoming digital home theater systems and several new dual-deck products, including the DV6430, a unit that incorporates Live TV Controls into a high-end DVD+VCR combination unit (see separate announcement).

ReplayTV will feature the award winning ReplayTV 5000 digital video recorder and will discuss audio enhancements planned for the ReplayTV platform.

SONICblue will showcase these products and more at the Las Vegas Hilton in Suite 2968. For more information on any of these products or to see a demonstration, please contact a SONICblue representative.

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 holds a focused technology portfolio that includes Rio® digital audio players; ReplayTV® personal television technology and software solutions; and GoVideo® integrated DVD+VCRs, Dual-Deck™ VCRs, and digital home theater systems.

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FOR MORE INFORMATION:

Press Contact:
James Espinoza
The Bohle Company for SONICblue
(310) 785-0515
jamese@bohle.com

Investor Relations:
Ian Shea
SONICblue
408-588-8242
ir@sonicblue.com

Except for the historical information contained herein, the matters set forth in this press release, including, but not limited to, which SONICblue products will actually be introduced at CES; SONICblue’s creation of new market categories through its new products that will be introduced at CES; and planned audio enhancements to the ReplayTV platform 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 impact of competitive products and pricing and of alternative technological advances, the release of new products from SONICblue’s competitors, the ability of SONICblue and its suppliers and partners to meet scheduled delivery and release dates, product engineering and marketing decisions of SONICblue and others, decisions made by the International CES program organizers, 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 September 30, 2002. These forward-looking statements speak only as of the date hereof. SONICblue disclaims any obligation to update these forward-looking statements.

Rio, GoVideo and ReplayTV are registered trademarks of SONICblue Incorporated. SONICblue and Dual-Deck are trademarks of SONICblue Incorporated.



Rio ReplayTV Go-Video Diamond
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