DivXNetworks Opens First Office in Europe

German Office Will Support Sales and Marketing Efforts for World’s Most Popular Video Technology

Dortmund, Germany and San Diego, CA—July 10, 2003—DivXNetworks, Inc., the company that created the revolutionary, patent-pending DivX® video compression technology, today announced the opening of DivXNetworks Europe, a sales and marketing office based in Dortmund, Germany. The office will be managed by Dino Mari, the newly appointed Managing Director of DivXNetworks Europe.

DivXNetworks Europe will focus on a number of business initiatives, including launching DivX software products into major European retail channels, licensing DivX video technology to major European software companies, supporting the DivX Certification™ program for consumer electronics devices, and creating video distribution solutions with major European telcos and infrastructure companies. Millions of DivX Licensed software products and DivX Certified™ consumer electronics devices are expected to hit European retail shelves in 2003.

“The DivX phenomenon has always been enormously popular in Europe, and we are very excited to officially open our European business office in Germany,” said Kevin Hell, Chief Marketing Officer and Managing Director at DivXNetworks. “With his valuable sales and marketing experience in the technology marketplace, Dino Mari is an excellent choice to help manage our growth in Europe as we work with our partners to bring officially licensed DivX software and hardware products to market.”

The opening of the European office is the latest global expansion move from DivXNetworks. Headquartered in San Diego, California, the company has satellite offices in San Jose and Los Angeles, CA, as well as Germany and Taipei, Taiwan. With over 85 million global downloads, DivX® video is the world’s most popular MPEG-4 compatible video compression technology, powering a wide range of products and applications.

“Due to the significant brand awareness and widespread consumer adoption of DivX video, there exists a tremendous opportunity for DivXNetworks to enhance its strong and thriving business in Europe,” said Dino Mari, Managing Director of DivXNetworks Europe. “The European team will focus on supporting existing partners, driving business development relationships and coordinating marketing and public relations efforts. The Europe office will also allow us stay closer to our target markets and consequently gain a better understanding of the specific requirements of the marketplace.”

For more information on DivXNetworks, visit www.divxnetworks.com.

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 85 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 satellite offices in Los Angeles and San Jose, CA, Taipei, Taiwan, and Dortmund, Germany. For more information, visit https://www.divxnetworks.com.