Exhibit 99.1

                      PRESS RELEASE DATED SEPTEMBER 5, 2002


FOR IMMEDIATE RELEASE


                    SONICBLUE STREAMLINES BUSINESS STRUCTURE

   Company To Review Restructuring Strategy and Corporate Guidance on Conference
   Call

        SANTA CLARA, Calif., September 5, 2002 -- SONICblue(TM) Incorporated
(Nasdaq: SBLU) announced today that the Company will streamline its business
structure. This process, which includes a reduction in force and consolidating
certain business units into the Santa Clara facility, began today and will be
implemented by year's end.

        The reduction in force, which will decrease SONICblue's overall staff by
approximately 25 percent, includes corporate officers Roger Hackett, senior vice
president of sales, and Andy Wolfe, chief technology officer. In addition,
certain functions currently housed in Scottsdale, AZ, and the audio business
currently located in Tigard, OR will be consolidated into the Santa Clara
facility.

        "This was a difficult decision for everyone involved, but is an
important step in our drive towards improved financial performance," said Greg
Ballard, chief executive officer, SONICblue. "We are eliminating redundancies
and recognizing synergies within the organization wherever possible, which we
believe will allow us to significantly decrease our cost structure."

        A conference call is scheduled for Friday Sept. 6, 2003 at 5:30 a.m. PT.
Gregory Ballard, interim CEO, and Marcus Smith, interim CFO, will review the
Company's business strategy, today's changes and provide guidance for the
quarter, followed by a question and answer period.

        The domestic dial in number for the live audio call beginning at 5:30
a.m. PT on Sept. 6 is: (800) 857-4257, International: (630) 395-0348 Passcode:
SONICblue. Please dial in at least ten minutes prior to the conference in order
for the operator to connect you to the call.

        A replay of the call will be available from 7:30 a.m. PT on Sept. 6
until 5 p.m. Pacific Time on Sept. 13, 2002 by dialing: (800) 366-0192,
International: (402) 344-6816 Passcode: SONICblue

ABOUT SONICBLUE INCORPORATED (www.SONICblue.com)

        SONICblue is a leader in the converging Internet, digital media,
entertainment and consumer electronics markets. Working with partners that
include some of the biggest brands in consumer





electronics, SONICblue creates and markets products that let consumers enjoy all
the benefits of a digital home and connected lifestyle. SONICblue holds
significant financial assets, global marketing capabilities and a focused
technology portfolio that includes Rio(R) digital audio players; ReplayTV(R)
personal television technology and software solutions; and Go-Video(R)
integrated DVD+VCRs, Dual-Deck(TM) VCRs, and digital home theater systems.

                                     # # #

FOR MORE INFORMATION:

PRESS CONTACT:                                     INVESTOR RELATIONS:

Amanda Sanyal                                      Ian Shea

SONICblue                                          SONICblue

408-588-8060                                       408-588-8242

asanyal@sonicblue.com                              ir@sonicblue.com


Except for the historical information contained herein, the matters set forth in
this press release, including statements as to the success, size and nature of
the restructuring, and expected decreases in the Company's cost structure, are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are subject to
risks and uncertainties that could cause actual results to differ materially,
including, but not limited to, the Company's ability to implement its business
plan and reduce expenses, the impact of competitive products and pricing and of
alternative technological advances, manufacturing difficulties, fluctuations in
consumer demand due to economic developments and uncertainties, and other risks
detailed from time to time in the SEC reports of SONICblue Incorporated,
including its annual report on Form 10-K for the period ended December 31, 2001
and its quarterly report on Form 10-Q for the quarter ended June 30, 2002. These
forward-looking statements speak only as of the date hereof. SONICblue disclaims
any obligation to update these forward-looking statements.

SONICblue is a trademark of SONICblue Incorporated. ReplayTV, Go-Video and Rio
are registered trademarks of SONICblue Incorporated. All other products and
brand names as they appear in this release are trademarks or registered
trademarks of their respective holders.