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CyberLink Licenses DivX (TM) Video Technology to Integrate into Leading Line of Multimedia Software Products

Comprehensive Licensing Agreement Allows CyberLink to Leverage Leading Video Technology Through OEM and Retail Distribution Channels

San Diego, CA and Taipei, Taiwan–Jan. 15, 2003 — DivXNetworks, Inc., the company that created the revolutionary patent-pending DivX video compression technology, and CyberLink, a world leader in digital video and audio solutions, today announced a comprehensive software licensing and marketing partnership. CyberLink has licensed DivX and DivX Pro video compression technology for the company’s leading line of digital video and audio multimedia software products

CyberLink will integrate DivX video technology as the default MPEG-4 codec in all of its software products including PowerDVD, PowerDirector, PowerProducer, PowerVCR, StreamAuthor, VideoLive Mail, Medi@show, and Talking Show. These popular multimedia software products will be sold directly to consumers through CyberLink’s retail and electronic software download (ESD) channels. Additionally, CyberLink will distribute DivX powered software products through their wide-reaching original equipment manufacturers (OEM) channel to millions of consumers across the world. CyberLink and DivX will work together closely to deliver compelling software products to OEM manufacturers of PCs, digital video cameras, digital still cameras, video cards, and other widely used consumer hardware products.

DivXNetworks will market the DivX powered CyberLink software products to over 12 million monthly users on DivX.com, the company’s consumer-facing web property. DivX.com offers a valuable marketing channel of international tech-savvy digital video consumers. DivX video compression technology is a hugely popular video encoder/decoder that offers DVD-quality video at sizes 7-10 times smaller than MPEG-2 and ranks among the world’s most popular video technologies, with over 75 million downloads and an average of over 2 million downloads per month. The advanced DivX Pro includes a set of advanced encoding techniques and built-in video processing tools specifically designed to meet the wide-ranging demands of digital video professionals.

“We’re very excited to work together with DivXNetworks to leverage the superior visual quality, high performance, and enormous brand recognition of DivX video technology for our full line of multimedia products,” said Alice H. Chang, CEO of CyberLink. “The addition of DivX, the best MPEG-4 technology on the market, provides a real value-add for OEM manufacturers and consumers alike.”

“CyberLink is an innovative and pioneering company in the multimedia space, and we’re pleased to combine DivX video with their great line of software products,” said Jim Geison, director of sales at DivXNetworks. “We’re looking forward to working together to develop a full suite of DivX powered products to the global OEM and consumer retail market.”

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 75 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 CyberLink Corp.

Founded in 1995, CyberLink Corp. is a world leader and pioneer in bringing advanced digital video and audio software products to market. The products are categorized into two major lines: Digital Video Entertainment and E-Training Solutions. Digital Video Entertainment products focus on providing video/audio playback, recording, authoring and burning capabilities on the personal computer. These award-winning software applications are ideal solutions for turning today’s mainstream computers into powerful home theaters and digital video centers. The company’s E-Training Solutions offer breakthrough technologies to stream and manage high-quality, media-rich contents over corporate intranets or the Internet. As a result of the company’s solid growth and profitability, CyberLink became a public company in October of 2000 and is listed on the Taiwan Over The Counter Exchange (OTC: 5203 – News). To keep up with market demands, CyberLink has operations in North America, Europe and the Asia Pacific region including Japan. CyberLink’s worldwide headquarters are in Taipei and its Web site is located at www.goCyberlink.com

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