New Release of DivX Video Codec Supports High-Quality Playback on Consumer Electronics Devices

DivX ® 5.0.3 Includes Performance Optimizations, Allows Users to Encode Video for DivX Certified CE Profiles

San Diego, CA—January 29, 2003—DivXNetworks, Inc. today announced the release of the DivX ® 5.0.3 suite of video compression technologies. Available now at www.divx.com/divx, DivX 5.0.3 is the first version of the revolutionary patent-pending DivX video compression technology with new features and quality improvements optimized for high-quality playback on upcoming DivX Certified consumer electronics devices.

The new release allows DivX users to choose from one of four official DivX Certified consumer electronics profiles when encoding video. The four encoding profiles—Portable, Handheld, Home Theater, and High-Definition—ensure that the completed files will provide optimal playback on official DivX Certified devices, such as DVD players, set-top boxes (Home Theater profile), portable video players (Handheld profile), PDAs (Portable profile) and more. The DivX Certification program was created to enable third parties to create consumer electronics products that are rigorously tested and fully compatible with the entire suite of DivX video technologies.

In addition to support for DivX Certified profiles, the new release contains a number of new features and enhancements, including:

· Nth Pass™ encoding–Nth Pass encoding is an innovative new feature that provides additional analysis of video sequences to more precisely affect rate control and improve visual quality.

· Support for interlaced video—This new feature preserves interlaced fields of encoded video for better video quality during playback.

· New de-ringing post-processing algorithm—Improves playback quality.

· Video Buffer Verifier (VBV) model (one and two pass encoding)—Allows the user to better control peak bit rate to prevent potential decoding failure in both hardware and software and improve visual quality.

“We believe that the DivX-powered connected home, in which consumers will easily and quickly move high-quality DivX content beyond the PC to a wide range of DivX Certified playback devices, will become a reality in 2003,” said Kevin Hell, managing director and chief marketing officer at DivXNetworks. “The release of DivX 5.0.3 is a very important step in fulfilling this vision. DivX users can now encode content once using the appropriate profile and be assured that their video will play back on their DivX Certified DVD player or portable device at the highest possible quality level.”

DivX 5.0.3 is available to consumers in two versions. The standard DivX 5.0.3 release is offered for download free of charge, while a professional version of the codec, DivX Pro 5.0.3, is available for a small one-time charge or through a free ad-supported version. To download DivX 5.0.3 or DivX Pro 5.0.3 today, visit www.divx.com/divx. For more information on the DivX Certification program, 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 https://www.divxnetworks.com.