Sonic Foundry May Soon Expecience Significant Operating Leverage

Sonic Foundry, Inc.’s (NasdaqCM: SOFO) reported one of its best starts for the first quarter of its fiscal year, typically one of
its two weakest quarters. This was due to the culmination of years of focus, squeezing operating expenses, and developing a
product with the customer and end user in mind. The company continues to maintain good cash balances and is negotiating an
additional credit facility in anticipation of increasing working capital demands.

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