SONICblue Expands Pricing Model - $9.95/Month or 1-Time $250

Reprinted from a SONICblue press release:

SANTA CLARA, Calif. - August 29, 2002 - SONICblue Incorporated (Nasdaq:
SBLU) announced today that it will offer a monthly service option, effective
September 1, 2002, on all new ReplayTV purchases. With this change,
ReplayTV, already the most full-featured DVR product on the market, now
gives consumers even greater choice and flexibility when purchasing new
ReplayTV units.

“The addition of a monthly service option in combination with our recently
reduced prices and rebate offers, makes ReplayTV an even more attractive
choice for consumers,” said Dr. Nikhil Balram, vice president Connected
Home products, SONICblue. “We are confident that these changes and our
continually expanding retail presence will significantly increase our ReplayTV
sales.”

SONICblue recently expanded distribution for ReplayTV with Circuit City,
who joins a host of top retailers in offering ReplayTV products in their
stores. ReplayTV can now be found at Circuit City, Good Guys, Amazon,
The Wiz and Tweeter.

The new service fee will be $9.95 per month, and may be chosen as an option
to the existing one-time $250.00 service fee when activating new ReplayTV
units. Customers must pay one of the service fees for each ReplayTV purchased.
Current pricing for the ReplayTV 4500 series is as follows:

- ReplayTV 4504 - Up to 40 hours of recording capacity for $399.99 (MSRP)
plus a $50.00 rebate for an after rebate price of $349.99
- ReplayTV 4508 - Up to 80 hours of recording capacity for $549.99 (MSRP)
plus a $100.00 rebate for an after rebate price of $449.99
- ReplayTV 4516 - Up to 160 hours of recording capacity for $999.99 (MSRP)
plus a $100.00 rebate for an after rebate price of $899.99
- ReplayTV 4532 - Up to 320 hours of recording capacity for $1,399.99
(MSRP) plus a $100 rebate for an after rebate price of $1,299.99

All ReplayTV 4500 models are compatible with cable, satellite and antenna
programming feeds.