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D-Link and DivX Sign Agreement to Release First DivX Connected Device

August 31, 2007

D-Link DSM-330 DivX Connected™ HD Media Player Will Allow Consumers to Access All Their Digital Media Through an Open Platform for the Connected Home

BERLIN, Aug 31, 2007 (BUSINESS WIRE) — The evolution of the digital home is set to make a significant step forward with the D-Link DSM-330 DivX Connected™ HD Media Player, the world’s first DivX Connected consumer electronics device. Developed to enable the seamless streaming of media from digital devices directly to the television set, the DSM-330 is the result of an agreement between D-Link, a leading manufacturer of networking, connectivity, and data communications products, and DivX (NASDAQ:DIVX), a leading creator of products and services designed to improve the experience of media.
DivX Connected is a powerful, easy-to-use open platform that brings a high-quality digital media experience to the living room, allowing consumers to access media content and services from the PC and Internet through a range of consumer electronics devices.

Expected to be available in the UK, France and Germany from the fourth quarter of 2007, the pioneering D-Link DSM-330 DivX Connected™ HD Media Player enables users to directly manage their digital media with a remote control, and seamlessly deliver high-definition videos, photos, music and a variety of internet services directly to their television. The platform includes built-in support for the Stage6 DivX video service so users can immediately access a variety of high-quality videos on their television.

Commenting on the introduction, Andrew Mulholland, D-Link Marketing Manager: “The availability of low cost wireless networks for the home combined with the proliferation of digital devices has made the digital home a reality for many families. The DSM-330 DivX Connected™ HD Media Player will make it easy for everyone to share their digital content via their home’s most established entertainment centre – the television. In keeping with its pioneering heritage, D-Link is proud to be the first to announce such a solution.”

“We’re excited to work with D-Link toward the release of the first official DivX Connected device,” said Jerome “Gej” Vashisht-Rota, Co-founder, Vice President & Group Business Manager, Media Experience, at DivX, Inc. “The DivX Connected platform is the next step in our high-level mission to transform the digital media experience and that offers a truly new way to experience and discover content from the living room. We’re bringing the open and vibrant power of the internet to the world of consumer electronics devices, and D-Link is a great partner to help make that vision a reality.”

For more information on DivX Connected, see www.divx.com/connected. For more information on D-Link, see www.dlink.eu

About D-Link Corporation

Celebrating 20 years of “building networks for people,” D-Link was founded in Taipei in 1986 and has grown into a billion dollar global designer, developer and manufacturer of networking, broadband, digital electronics and voice and data communications products. The company’s solutions are ideal for digital home, small- to medium-sized business (SMB) and enterprise environments. In Europe, D-Link has 20 offices and is headquartered in London. The region is strategically critical for the company and represents one third of its global revenues. For more information, visit www.dlink.co.uk

About DivX, Inc.

DivX creates products and services designed to improve the experience of media. Our first product offering was a video compression-decompression software library, or codec, which has been actively sought out and downloaded over 240 million times since January 2003, including over 80 million times during the last twelve months. We have since built on the success of our codec with other consumer software, including the DivX Player application, which is distributed from our website, www.divx.com. We also license our technologies to consumer hardware device manufacturers and certify their products to ensure the interoperable support of DivX-encoded content. In addition to technology licensing to consumer hardware device manufacturers, we currently generate revenue from software licensing, advertising and content distribution.

Forward-Looking Statements

Statements in this press release that are not strictly historical in nature constitute “forward-looking statements.” Such statements include, but are not limited to, statements regarding activities expected to occur in connection with the Company’s relationship with D-Link, anticipated features, benefits and performance of the DivX Connected platform and products, and expectations for the timing of availability of certain DivX Connected devices to the retail market. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause DivX’s actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements. These factors include, but are not limited to: risks related to the implementation of the Company’s relationship with D-Link, the risk that the DivX Connected platform may not provide features, benefits or performance at the levels and quality anticipated, the risk that DivX Connected devices may not be available to the retail market when expected, or at all, the risk that customer use of DivX technology may not grow as anticipated; the risk that anticipated market opportunities may not materialize at expected levels, or at all; the risk that the Company’s activities may not result in the growth of profitable revenue; risks and uncertainties related to the maintenance and strength of the DivX brand; DivX’s ability to penetrate existing and new markets; the effects of competition; DivX’s dependence on its licensees and partners; the effect of intellectual property rights claims; and other factors discussed in the ‘Risk Factors”- section of DivX’s quarterly report on Form 10-Q filed with the SEC on August 14, 2007. All forward-looking statements are qualified in their entirety by this cautionary statement. DivX is providing this information as of the date of this release and does not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.

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