Canopus Co., Ltd Licenses DivX® Technology As Default Video Software Codec for Licensed Products

Partnership with DivXNetworks Brings World’s Leading Video Compression Technology to Canopus Advanced Video Production Solutions

San Diego and San Jose, CA—August 7, 2003—DivXNetworks, Inc, the company that created the revolutionary, patent-pending DivX® video compression technology, and Canopus Corporation today announced a comprehensive technology licensing partnership. Under the terms of the agreement, Canopus will include DivX Pro, the professional version of the popular DivX video technology, as the default video software codec across the company’s licensed software and hardware products.

With a wide variety of award-winning products, Canopus is a leader in the content production market for professionals and video enthusiasts. DivX Pro is the most advanced video compression technology on the market and includes innovative encoding techniques and built-in video processing tools to meet the rigorous demands of digital video professionals. Canopus will include DivX Pro in their video production products, including the popular MTV series of video capture boards and ProCoder, the company’s advanced multi file format converter.

“Canopus is well known as a global leader in high-end video software and hardware, and we are pleased that they have chosen to integrate DivX Pro into their product line,” said Jordan Greenhall, Founder and CEO of DivXNetworks. “The combination of the industry-leading products from Canopus with the unsurpassed visual quality and compression of DivX Pro will provide video enthusiasts with a complete set of cutting-edge video tools for content production.”

“The addition of DivX Pro will significantly enhance the capability of our products and thus the customer experience. We are pleased to work with DivXNetworks to provide our consumers with the best video editing and personal recording solutions on the market,” said Hiro Yamada CEO of Canopus. “With its incredible visual quality, excellent compression ratio, and strong global brand, DivX is the most advanced MPEG-4 technology and as such provides an excellent fit with our high quality product line.”

For more information on the DivX® Software Licensing program, write to licensing@divxnetworks.com. To learn more about Canopus video editing products, visit www.canopus.com.

About DivXNetworks DivXNetworks is a consumer-focused video technology company positioned at the center of multimedia convergence. The company’s core offering is the DivX ® video codec, the world’s most popular MPEG-4 compatible video compression technology with over 85 million users worldwide. Often called “the MP3 of video,” the patent-pending DivX video technology offers DVD-quality at 10 times greater compression than MPEG-2 files, enabling full length films to easily fit on a CD or be delivered over broadband connections. DivX video technology powers a range of applications that span the convergence value chain, from a secure IP-based video-on-demand solution to next-generation consumer electronics products and video software applications. DivXNetworks is headquartered in San Diego, California, with a satellite office in Los Angeles. For more information, visit https://www.divxnetworks.com.

About Canopus Corporation Based in San Jose, Calif., Canopus Corporation designs and markets award-winning, nonlinear video editing products for video professionals and enthusiasts. Canopus’s DV editing, MPEG encoding, 3D DVE and video transcoding products combine innovative hardware and software designs to set new standards in performance, functionality and reliability. Canopus Corporation’s parent company, Canopus Co., Ltd., with headquarters in Kobe, is Japan’s largest maker of video editing and graphics products. The company has offices in the UK, Germany, Australia, Italy and China in addition to an extensive worldwide distributor network. For more information contact Canopus at (408) 954-4500 or visit their Web site at www.canopus.com.