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SONICblue Granted Reversal of Customer Tracking Ruling

Will Not Be Forced To Monitor Consumers' Usage of ReplayTV 4000

SANTA CLARA, Calif. - June 3, 2002 - SONICblue (TM) Incorporated (Nasdaq:

SBLU) announced today that District Court Judge Florence-Marie Cooper has

overturned a Magistrate Judge's ruling of April 26, 2002, which required

the company to rewrite and implement software to monitor its customers'

viewing habits.

"This is an important victory for us in the litigation, but most importantly,

it's a victory for our consumers," said Ken Potashner, President and CEO

of SONICblue. "We have been, and continue to be willing to work with the

content providers to develop new revenue models. If the networks and studios

focused on the inevitable evolution of their business instead of attempts

to stifle technology, we believe everyone involved would benefit, consumers

most of all."

Privacy and consumer electronics groups lauded the decision and continue

to be supportive in SONICblue's fight to maintain consumer freedoms and

protect innovation.

This decision is a victory for consumers," said Megan Gray, Senior Counsel

for the Electronic Privacy Information Center. "The prospect of monitoring

a consumer's every action simply because they own a product that has been

alleged to be susceptible to some uses the entertainment industry dislikes,

is abhorrent to constitutional principles. We're glad the court recognized

this and overturned the ruling."

"Forcing a company to change its product in order to conduct surveillance

on its customers is unreasonable and inappropriate," said Michael Petricone,

Vice President of Technology Policy for the Consumer Electronics Association.

"We were concerned about the potential chilling effects a ruling of this

type could have on consumer behavior and technological innovation, and

are pleased that it was overturned."

Judge Cooper's order was entered and delivered to the parties on Friday

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