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DivX, Inc. Announces Exercise in Full of Underwriters’ Over-Allotment Option

September 26, 2006

SAN DIEGO, Calif.- September 26, 2006- DivX, Inc. (NASDAQ: DIVX) today announced that the underwriters of its previously announced initial public offering have exercised their 30-day over-allotment option and will purchase an additional 1,365,000 shares of common stock from the selling stockholders. The purchase price of the over-allotment shares is $16.00 per share. DivX will not receive any proceeds from the sales of shares of common stock by the selling stockholders.
The offering is being made through an underwriting syndicate led by J.P. Morgan Securities Inc. acting as sole book-running manager. Banc of America Securities LLC, Cowen and Company, LLC, Canaccord Adams Inc. and Montgomery & Co., LLC are acting as co-managers.

A registration statement relating to these securities was declared effective on September 21, 2006. This release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The offering of these securities is being made only by means of a written prospectus, copies of which may be obtained by contacting the prospectus department at J.P. Morgan Securities Inc., 4 Chase Metrotech Center, Brooklyn, NY 11245, (718) 242-8002.

About DivX

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 180 million times in the last four years, including over 50 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. We distribute this software from our website, DivX.com, which was visited on average by over five million unique visitors per month during the second quarter of 2006. We also license our technologies to consumer hardware device manufacturers and certify their products to ensure the interoperable support of DivX-encoded content. Over 46 million DivX Certified hardware devices have been shipped worldwide, including over 10 million devices reported to us by our customers during the second quarter of 2006. In addition to technology licensing to consumer hardware device manufacturers, we currently generate revenue from software licensing, advertising and content distribution.

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