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MediaTek and DivXNetworks Announce Partnership and DivX Certified MT1389 Chip Solutions

December 11, 2003

DVD Player Chipset Passes Rigorous Testing Process To Qualify For DivX Certified Status

SAN DIEGO & HSINCHU, Taiwan–Dec. 11, 2003–DivXNetworks, Inc., the company that created the revolutionary, patent-pending DivX(R) video compression technology, and MediaTek, Inc. (TSE: 2454), one of the world’s top 5 integrated circuit (IC) fabless companies, today announced a partnership and that several versions of MediaTek’s MT1389 chip solution — the MT1389DE, MT1389EE, MT1389FE, and MT1389SE models — are now official DivX Certified(TM) hardware components. The MT1389 chip has passed the requirements needed to qualify for the DivX Certified(TM) Home Theater Profile designation. Recognized as the world’s leading company in the optical storage industry, MediaTek offers comprehensive IC solutions for CD-ROM, DVD-ROM, CD-R/RW, DVD-Rewritable drives and DVD Players. MediaTek’s chipsets, including the MT1389, are used in over 45% of the world’s DVD players. The DivX Certified(TM) designation of the MT1389 means that it has passed DivXNetworks’s rigorous testing process to confirm that it fully supports videos encoded in the DivX(R) video format, and videos protected with the DivX(R) VOD digital rights management system. The popular DivX(R) video technology, which offers DVD-quality at 7-10 times greater compression than MPEG-2, is often called the “MP3 of video” and has over 100 million worldwide users. MediaTek will offer the DivX Certified(TM) MT1389 chipset to DVD player manufacturers around the world.

“We are committed to providing our customers with most full-featured and advanced DVD chipset solutions on the market. We are pleased to now have an official DivX Certified(TM) chipset solution that will help us maintain our advantage as a leading provider of video technology IC solutions,” said Vincent Huang, vice president and general manager of Digital Consumer Product B.U. at MediaTek Inc. “DivX video has proven to be enormously popular with consumers all over the world, and we have seen significant demand for next-generation devices that support high-quality DivX video playback.”

“MediaTek is one of the world’s leading suppliers of IC solutions for the DVD players market. They are a forward-looking company and an influential force in the global consumer electronics market,” said R. Jordan Greenhall, Co-founder, chairman, and chief executive officer at DivXNetworks, Inc. (www.divxnetworks.com). “We are proud to work with MediaTek to help meet the significant worldwide demand for DivX Certified hardware devices. The inclusion of DivX(R) video playback and DivX(R) VOD digital rights management in MediaTek’s chips will enable millions of DVD players to play DivX(R) videos.”

The DivX Certified Program 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 Program enables these companies to meet the global demand for high-quality DivX video-enabled convergence devices. For more information on the DivX Certified Program, including a full list of the program members, 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 (R) video codec, the popular video compression technology with over 100 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, Calif., with satellite offices in Los Angeles and San Jose, Calif.; Taipei, Taiwan; and Dortmund, Germany. For more information, visit https://www.divxnetworks.com.

About MediaTek, Inc.

MediaTek Inc. is a leading provider of total solution for optical storage and digital consumer semiconductor. Founded in 1997 and headquartered at Hsin-Chu Science Park, Taiwan, MediaTek is now one of the world’s top 5 IC fabless companies and the world’s largest chipset suppliers of CD-ROM, DVD-ROM, CD-RW, Combi and DVD players. The Company’s common stock is traded on the Taiwan Stock Exchange under the code “2454.” For more information, please visit the Company’s web site at www.mtk.com.tw.

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