Sears Chooses Sonic Solutions to Deliver Movie Downloads

RoxioNow to Power New Digital Video Entertainment Services, Providing Instant Access to Hollywood Hits on Home and Mobile Electronics Sold at Sears and Kmart Stores

NOVATO, Calif. — Sonic Solutions® (Nasdaq: SNIC) today announced it has entered into an agreement with Sears Holdings (Nasdaq: SHLD) to provide consumers easy access to Hollywood entertainment on a range of Internet-connected devices including TVs, Blu-ray Disc players, and mobile phones. As part of the multi-year agreement, Sears has licensed the RoxioNow™ platform, which will power digital entertainment delivery services for both Sears and Kmart. The new services are expected to launch later this year and be broadly promoted at retail stores nationwide.

“Teaming up with Sonic is a great opportunity for Sears and Kmart to quickly establish a position in digital video entertainment, and offer another great service to our customers,” said Karen Austin, President of Home Electronics for Sears Holdings. “With direct access to so many movies and TV shows from a broad range of devices, our customers will have the ability to obtain the latest high-quality entertainment virtually anywhere, anytime.”

The entertainment services will offer a complete range of regularly updated movies and TV shows for rent or purchase, including new releases often on the same day DVDs become available at retail stores. Sonic and Sears will team to embed the services on a growing network of devices including portable media players, Blu-ray Disc players, mobile phones, and high-definition television sets from leading manufacturers.

“Our relationship with Sears is not only another example of how our RoxioNow platform can enable a broad range of companies to cost-effectively launch entertainment services, but also a clear indication that digital movie delivery has become mainstream,” said Dave Habiger, President and CEO, Sonic Solutions. “Consumers not only want the convenience and instant gratification digital services provide, they also want greater flexibility and control over where and when they choose to enjoy the entertainment they own. This is exactly what we are delivering through the ever-expanding ecosystem of devices and storefronts we power.”

The RoxioNow platform serves a broad range of premium content, including new movies and next-day TV programs, to a growing, multi-manufacturer ecosystem of home and mobile electronics including PCs, connected TVs, set-top DVRs, Blu-ray Disc players, smartphones, and mobile media devices. The platform enables retailers and consumer electronics companies to participate in the entertainment supply chain, add value to product offerings, and form ongoing relationships with customers. “Powered by RoxioNow™” stores enable consumers to instantly rent and purchase high-quality entertainment on their favorite device and, through the RoxioNow online entertainment locker, the flexibility to playback content ordered on additional consumer electronics devices.