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Sonic Solutions to cut 100 jobs

LAYOFFS, BUSINESS UNIT CONSOLIDATION PART OF CORPORATE RESTRUCTURING PROJECTED TO SAVE $14M A YEAR

NOVATO, Oct. 30, 2008 – Sonic Solutions (Nasdaq: SNIC), maker of software for manipulating and storing digital media as well as creating high-end Hollywood effects, today said it would reduce its employees and contractors by 100 positions and consolidate two business units to save $14 million a year and increase profitability.

"This restructuring enables us to focus on specific growth opportunities and improve our near-term profitability," said President and CEO Dave Habiger.

On Aug. 12 when reporting first-quarter results, including a $3.6 million net loss, the company predicted a return to profitability in the second half of its fiscal year. Sonic is scheduled to release its second-quarter results on Nov. 5.

Sonic said it expects to report a one-time charge of $2.5 million for severance and other costs.

The company said it will consolidate its Advanced Technology Group and its Roxio consumer products divisions.

Sonic's stock price was $1.60 a share at the close of trading today, a decrease of 1 cent a share.