DivXNetworks Adds Fedtec as Newest Certified Partner in Move to Create DivX-Powered Consumer Electronics Devices

Design House Will Create DivX Certified Reference Design for Next-Generation Portable Video Players

San Diego, CA–Jan 8, 2003 — DivXNetworks, Inc., the company that created the revolutionary patent-pending DivX video compression technology, today announced a partnership with Federal Technologies Limited (Fedtec), a design house based in Bangalore, India. Under the agreement, Fedtec will create DivX Certified consumer electronics solutions, including a reference design to enable the creation of DivX-powered portable video players.

Fedtec joins a growing number of companies who are working to create a wide range of DivX-powered consumer electronics platforms scheduled to hit the market in 2003. DivX video, which offers DVD-quality video at 7-10 times greater compression than MPEG-2, is the world’s most popular MPEG-4 compatible video compression technology with over 75 million worldwide users.

“We are very pleased to work closely with Fedtec to create a reference design that will enable the creation of DivX Certified portable video players,” said Jim Geison, director of sales at DivXNetworks, Inc. www.divxnetworks.com. “There exists a huge demand for DivX convergence devices among the millions of DivX users around the world, and Fedtec clearly possesses the technical expertise and strategic focus to create solutions that will help make these devices a reality in the near-term.”

The powerful brand recognition, excellent visual quality, and enormous installed base of users and available content makes DivX technology a valuable addition to next-generation hardware devices,” said Rathan Kumar, chairman and CEO of Fedtec. “We’re very excited to work closely with DivXNetworks to bring the power of DivX video to consumer electronics manufacturers.”

DivX Certification includes a full DivX software development kit to help third parties make their existing solutions compatible with DivX technology, or to help them create new solutions from scratch. The DivX Certified Partner Program was created to enable the development of official DivX-enabled consumer electronics products 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 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 www.divxnetworks.com.

About Fedtec

Fedtec is a design house providing ready-to-manufacture reference designs in infotainment technologies with vertical focus on digital television, wireless communication and digital media devices fusing convergence technology skills covering software, hardware and industrial design to OEM’s worldwide. Fedtec’s intellectual property include speech, audio, image and video codecs on TI’s high-end DSP’s, 1.8GHz DECT & 2.4GHz WDCT protocol stacks, DVB & ATSC engines, set-top box applications, personal video recorders, common interface based conditional access, internet access clients and streaming, configuration management, routing protocol stacks. Fedtec has FedLinux (Fedtec’s embedded Linux) on ARM, ARC and MIPS processors. Fedtec is represented through its offices and partners in: United States, Japan, Korea, Taiwan, Germany and India. Fro more information, visit: www.fedtec.com.