DivXNetworks Partners With Leading IC Supplier ALi Corporation to Create DivX(R) Certified Chip Solutions

San Diego, CA and Taipei, Taiwan–May 20, 2003 — DivXNetworks, Inc., the company that created the revolutionary, patent-pending DivX video compression technology, and ALi Corporation, one of the world’s leading suppliers of integrated circuits for multiple markets, today announced a wide-ranging technology and development partnership. As an official DivX Certified partner, ALi will create DVD chipset solutions capable of encoding and decoding all versions of DivX video technology.

ALi Corporation is one of the world’s leading suppliers of integrated circuits for a number of market segments including personal computers, PC peripherals, DVD players and embedded PC systems and appliances. Under the agreement, ALi will work with DivXNetworks to create a fully DivX Certified chipset solution for the global DVD player market.

“The addition of DivX video to our line of DVD chipsets will provide a critical competitive advantage for our customers who are creating the next-generation of consumer devices to power multimedia convergence,” said Daniel Huang, Associate Vice President of ALi Corporation. “We look forward to working DivXNetworks to meet the strong global demand for DivX Certified products.”

DivX video, which offers DVD-quality at 7-10 times greater compression than MPEG-2, is the world’s most popular MPEG-4 compatible video compression technology with over 80 million worldwide users. A wide range of DivX Certified consumer electronics devices, from portable video players to DVD players and set-top boxes, are scheduled to hit the market in 2003.

“ALi Corporation is an innovative leader in the global IC market, we’re very pleased to welcome them on board as an official DivX Certified partner,” said Shahi Ghanem, President and Chief Operating Officer of DivXNetworks, Inc. www.divxnetworks.com. “2003 is shaping up to be the year that the much-vaunted ‘connected home’ finally becomes a reality, and the emergence of next-generation DVD players and other devices powered by ALi’s IC solutions will play an important part in that transition.”

DivX Certification includes a full DivX software development kit, rigorous Certification testing, and marketing and sales support focused on helping third party development and OEM partners create DivX Certified consumer electronics solutions such as DVD and portable players, set top boxes, PVR, and digital video and still cameras. The DivX Certified Partner Program enables these companies 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 80 million users worldwide. 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 ALi

ALi Corporation is the world’s leading supplier of integrated circuits for PC, peripherals and multimedia. Its product offerings include core logic chipsets, DVD products and imaging peripherals. ALi is well positioned to deliver comprehensive solutions for the world of 3C integration. Information about ALi is available on the web: www.ali.com.tw.