Sonic Foundry Inc.

 Sonic Foundry, Inc. (Nasdaq: SOFO) reported a GAAP net income of $0.06 per share for its third quarter of its fiscal year ending September 30, 2010.  Sonic Foundry also reported revenues of $5.6 million for 3Q10, a 12% increase over 3Q09.  Sonic Foundry continues to enjoy increasing renewals and new customers in its education segment.  Sonic Foundry is enjoying higher sales penetration to community colleges and trade schools.  While sales to top education institutions has affirmed Sonic Foundry’s leadership position in rich media capture and presentation, the community college niche is very large and is a focus of national priorities on education and retraining.  Sonic Foundry has again reduced overhead, including marketing and administration, without reducing sales of product development.  We agree with management that Sonic Foundry may have passed an inflection point with potential to experience significant operating leverage.  The third and fourth quarter’s of Sonic Foundry’s fiscal years are typically its financially strongest.

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.

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SOFO.Update.10.05.24.pdf

Sonic Foundry, Inc.’s (NasdaqCM: SOFO) reported a positive earnings surprise in one of its two weakest quarters. This was due to booking a large international sale and successful execution of its cost containment program which commenced in the second half of 2008. The company continues to maintain good cash balances and recently negotiated an extension of its credit facility at more favorable terms...

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SOFO.Update.09.05.20.pdf

Sonic Foundry, Inc. (Nasdaq: SOFO) announced on January 24, 2008 its expectations for revenues of $2.5 million and a loss of $3.5 million for 1Q08, citing slowing market conditions at a time when corporate customers were making buying decisions for 2008.See full report

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SOFO.Update.08.02.28.pdf

We consider Sonic Foundry Inc.’s (NasdaqNM: SOFO) suite of Mediasite Internet recording products to be the most effective manner to communicate “serious” content on the Internet. Our opinion is based on our personal experience using the product in both education and in corporate communications. The product excels when the source of serious content has an earnest and important message to share with an audience equally anxious to fully understand and make good use of the message. See full report.

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SOFO.Spec_.07.12.31.pdf

Having provided research coverage on Sonic Foundry since March 15, 2005, when the price was $1.36 per share, we find their progress in creating a revolutionary product while responding to customer preferences and creating a new market to be historic. See full report.

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SOFO.Update.07.12.01.pdf

Sonic Foundry, Inc. (NasdaqNM: SOFO) is a technology leader providing solutions for the growing rich media (audio, video, and graphics) communications marketplace. The Company provides an elegant means for capturing and viewing rich media over the Internet. The Company has demonstrated its leadership position by a high level of repeat sales to existing customers and widespread acceptance among the largest higher education, corporate, and government institutions. Sonic Foundry has consistently improved its product, driven by a focus to meet the changing needs of its customers. See full report.

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SOFO.Update.07.08.01.pdf

Sonic Foundry, Inc.’s (Nasdaq: SOFO) Mediasite recorders are the “Rolls Royce” of the information superhighway and the leading vehicle for transporting serious rich media (video, audio, graphics) content on the Internet. The recent announcement of Mediasite 4.1 and its advanced search technology completes the company’s product offering, securing its position in one-to-many long distance learning. See full report.

Sonic Foundry, Inc.’s (Nasdaq: SOFO) Mediasite recorders are proving to be the “Rolls Royce” of the information superhighway and the leading vehicle for transporting serious rich media (video, audio, graphics) content on the Internet. The recent announcement of its advanced search technology completes the company’s product offering securing its position in one-tomany long distance learning. See full report.

Sonic Foundry Inc. (NasdaqNM: SOFO) has made possible free advanced search of rich media content to the public on its Mediasite. com website (www.mediasite.com). As opposed to limiting search to laborious manual tagging of data, Sonic Foundry has developed a automated advanced search platform for individualized search for data to be determined by the user. According to Sonic Foundry, See full report.

The Wall Street Journal article “Firms Take a Cue From YouTube” (1/2/07, B3) bodes well for Sonic Foundry Inc.(NasdaqNM: SOFO) in 2007. The article draws attention to corporations looking to video on the Internet to communicate to employees and customers. While this trend started well before YouTube, the acquisition by Google Inc. (Nasdaq: GOOG) has warmed investors to the possibilities of video over the Internet. See full report.

Sonic Foundry Inc. (NasdaqNM: SOFO) announced an offering of 3,000,000 shares at $3.75 per share to close December 27, 2006. The announcement was completed within minutes of the publishing of our latest report. We had increased our 12-month target price to $6.50 per share from $3.00 per share. We also increased our risk assessment for potential volatility leading up to the company’s first quarter earnings release to High from Moderate. See full report.

Sonic Foundry, Inc.’s (Nasdaq: SOFO) Mediasite recordersprovide a revolutionary and elegant solution for producing,distributing, and viewing rich media, leveraging the content of education, corporate, and government organizations. SOFO is now incorporating search capabilities expanding its value proposition. See full report.

Sonic Foundry, Inc.’s (Nasdaq: SOFO) Mediasite presentation recorders provide an elegant solution for distributing “one-tomany” rich media content for educational institutions, corporations and government organizations. We see SOFO rapidly approaching profitability and increased investor awareness and market interest. See full report.

Sonic Foundry, Inc.’s (Nasdaq: SOFO) Mediasite presentation recorders provide an elegant solution for distributing “one-tomany” rich media content for educational institutions, corporations and government organizations for live or on-demand viewing over the Internet, intranet or recording to physical media. See full report.