DivX Releases New Software for Easy Creation of High-Quality Videos with Advanced DVD-Like Features

SAN DIEGO & LAS VEGAS, Jan 08, 2007 (BUSINESS WIRE) — At the 2007 CES trade show in Las Vegas, Nevada, DivX, Inc. (Nasdaq:DIVX) announced the release of the new software application, DivX Author. Created in partnership with Pegasys/TMPG, Inc., DivX Author gives users the tools to create DivX files with advanced DVD-like features including menus, chapter points, multiple subtitles and multiple audio tracks. DivX files with advanced features are fully compatible with DivX Ultra Certified consumer electronics devices available on the global market today, and can also be played back on any of over 50 million DivX Certified devices from a variety of manufacturers.
Simple to use, DivX Author combines DVD-like interactivity with the excellent compression and visual quality users have come to expect from the DivX media format. When constructing videos with advanced features, DivX Author allows users to choose from built-in menu templates or to fully customize their own files through a robust menu creation process.

“DivX Author is a powerful, easy-to-use product that will enable users to take full advantage of all the advanced features offered by DivX,” said Kevin Hell, CXO at DivX, Inc. “Perhaps most importantly, DivX Author is a key piece of our strategy to build a common media language that spans platforms and devices, as interactive DivX files are fully compatible with DivX Ultra Certified DVD players, so users can playback their videos beyond the PC in a real home theatre environment.”

DivX Ultra Certification is the highest level of DivX certification and ensures hardware support for advanced features such as menus, chapters, multiple subtitles and multiple audio tracks. It guarantees a rich cinematic experience and greater interoperability for DivX video files. For more information about DivX Ultra Certification please visit www.divx.com/certification/.

DivX Author accepts large variety of input formats, including MPEG-1, MPEG-2, AVI, WMV, DivX and QuickTime. The English version of DivX Author is available for sale now from the DivX website, www.divx.com. A Japanese version will be available soon.

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 200 million times in the last four years, including over 60 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 DivX’s visibility within the investment community. 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, 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 November 13, 2006. 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.