Cheertek Inc. Licenses World’s Leading Video Compression Technology to Deliver DivX® Certified DVD Player Solutions

May 19, 2003—San Diego, CA and HsinChu, Taiwan—DivXNetworks, Inc., today announced that Cheertek Inc., one of the leading suppliers of integrated circuits for DVD player and digital consumer entertainment markets, has licensed the revolutionary, patent-pending DivX® video compression technology to embed into Cheertek’s next generation DVD chipsets. Under the agreement, Cheertek will work with DivXNetworks to create a fully DivX Certified chipset solution for the expanding DVD player market.

Cheertek Incorporated is a spin-off from Winbond Electronics Corporation of Taiwan (TSE; 2344), the largest brand name integrated circuit supplier in the Taiwan integrated circuit industry. Cheertek employs over 100 engineers in Taiwan, and focuses on DVD and VCD player chip set solutions.

“Adding DivX Certification to our DVD product lines will bring value to our next generation consumer devices, since DivX titles are becoming more popular throughout world,” said Archie Yeh, CEO & President of Cheertek Inc. “We expect DivX Certified DVD products to benefit not just our customers and consumers, but also DivXNetworks and of course Cheertek.”

DivX video, which offers DVD-quality at 7-10 times greater compression than MPEG-2, is the world’s most popular MPEG-4 compatible video compression technology with over 80 million worldwide users. A wide range of DivX Certified consumer electronics devices, from portable video players to DVD players and set-top boxes, are scheduled to hit the market in 2003.

“Cheertek Inc. is a fast-growing player in the global DVD IC market, and as such they are uniquely positioned to take advantage of the significant brand and technology benefits offered by the DivX Certification program ,” said Shahi Ghanem, President and Chief Operating Officer of DivXNetworks, Inc. www.divxnetworks.com. “The release of next-generation DVD players with full DivX video functionality represents a major milestone for consumers around the world. Cheertek’s fully DivX Certified SoC solutions will provide consumer electronics manufacturers with a robust, cutting-edge solution to power these important convergence devices.” ”

DivX Certification includes a full DivX software development kit, rigorous Certification testing, and marketing and sales support focused on helping third party development and OEM partners create DivX Certified consumer electronics solutions such as DVD and portable players, set top boxes, PVR, and digital video and still cameras The DivX Certified Partner Program enables these companies to meet the global demand for high-quality DivX convergence devices. For more information on DivX certification process, visit www.divx.com/certified.

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 80 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 Cheertek Inc. Cheertek Inc. is a leading supplier of high-performance, feature-rich chips for the rapidly growing DVD and digital consumer entertainment markets. The company provides system level total solutions that enable customers shorten time to mass production. Cheertek Inc., headquartered in HsinChu Science-Based Industrial Park, Taiwan, has R&D;, sales and technical support offices in Taiwan, Shanghai & ShenZhen in China. Cheertek’s web site address is: www.cheertek.com.tw.