CapStone Investments Selects Sonic Foundry’s Event Services To Webcast Upcoming Investor Conference

Contact:

Erica St. Angel

Sonic Foundry, Inc.

608-443-1600
ericas@sonicfoundry.com

MADISON, Wis., July 16 /PRNewswire-FirstCall/ — Sonic Foundry(R) Inc. (NASDAQ:SOFO) , a leader in automated rich media communications technology, today announced the company’s Mediasite Event Services group will webcast CapStone Investments’ 2007 Small-Cap Institutional Investor Conference. The event will take place July 16-17, 2007 in Milwaukee, Wisconsin.

The two-day conference brings together 48 companies from four sectors: alternative energy, healthcare, environmental and technology. Keynote speakers include Rob McAndrew, vice president of the Chicago Climate Exchange, and Devon Herrick, Ph.D., senior fellow with the National Center for Policy Analysis. Trained Sonic Foundry technicians will work on-site to capture the audio, video and visual aids for each of the presenters. The presentations will then be automatically webcasted using Sonic Foundry’s patented Mediasite(R) web communications platform.

“We are looking forward to helping our presenting companies gain additional exposure to the investment community by webcasting their presentations with Sonic Foundry’s Mediasite Event Services group,” said Ryan McGaver of CapStone Investments. “Our goal is to allow additional access to public companies that our institutional client base has grown to expect, so it is imperative that we align with a partner like Sonic Foundry who produces webcasts of superior quality, creating a valuable point of difference for our event and attending companies.”

The presentations will be available for on-demand viewing by the investment community at http://www.capstoneinvestments.com/page.asp?itemid=62.

Sonic Foundry’s Mediasite Event Services group consists of systems engineers with specialized knowledge of event recording and conference webcasting. The group supplies technical webcasting services and expertise to organizations who seek to complement their conference or event with viewing over the web. Since its launch in January of this year, the Mediasite Event Services group has provided live and on-demand webcasting for clients ranging from Fortune 500 corporations and university associations to sporting events and charitable organizations.

About CapStone Investments

CapStone Investments (http://www.capstoneinvestments.com/) is a broker-dealer and investment bank focused on small and micro cap equities. CapStone has provided a wide range of institutional services, including investment banking, research, trading systems and execution, and capital introduction services since 1994. CapStone Investments is a member of the NASD and SIPC.

About Sonic Foundry(R), Inc.

Founded in 1991, Sonic Foundry (NASDAQ:SOFO) is a technology leader in the emerging rich media communications marketplace, providing enterprise solutions and services that link an information-driven world. Sonic Foundry is changing the way organizations communicate via the web and how people around the globe receive vital information needed for work, professional advancement, safety and education. The company’s integrated webcasting and web presentation solutions are trusted by Fortune 500 companies, education institutions and government agencies for a variety of critical communication needs. Sonic Foundry is based in Madison, Wis. For more information about Sonic Foundry, visit http://www.sonicfoundry.com/.

Certain statements contained in this news release regarding matters that are not historical facts may be forward-looking statements. Because such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, uncertainties pertaining to continued market acceptance for Sonic Foundry’s products, its ability to succeed in capturing significant revenues from media services and/or systems, the effect of new competitors in its market and other risk factors identified from time to time in its filings with the Securities and Exchange Commission.