Samsung Ventures Makes Strategic Investment in Leading Video Technology Company DivXNetworks

Investment Will Help Guide Continued Growth of DivX Video Technology into Consumer Electronics Space

San Diego, CA –January 6, 2005—DivXNetworks, Inc., the company that created the revolutionary DivX® video compression technology, today announced a capital investment from Samsung Ventures America, the US-based venture capital investment arm of Samsung Venture Investment Corporation.

DivX video is among the world’s most popular digital media and video compression technologies with over 160 million global users. Thanks to the superior compression of DivX technology, users can fit a full length film on a standard CD-R, which is playable on a wide range of DivX Certified consumer electronics devices. Over 20 million DivX Certified consumer electronics devices will ship in 2004, and Samsung Electronics has already released a number of DivX Certified DVD players at retail stores around the world, including the DVDP-244 and the HTDB-750M models.

“We’re very pleased to receive the strong support of Samsung Ventures, and we look forward to bringing the power and performance of DivX compression and advanced multimedia technologies to a wide range of high-quality Samsung products,” said Shahi Ghanem, President of DivXNetworks (www.divxnetworks.com). “Samsung Venture’s long-term strategic vision is well aligned with DivXNetworks goals and strategy, we intent to build a strong and mutually beneficial partnership for years to come.”

“With a clear leadership position in the digital video industry, the great team at DivXNetworks is well positioned to guide the company into the future,” said Jay Eum of Samsung Ventures. “There is a strong and natural fit between Samsung Ventures and the performance and popularity of DivX video technology, and we believe this is a strong investment that will benefit both companies moving forward.”

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, among the world’s most popular video compression technologies with over 160 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, Tokyo, Japan, Guildford, England and Paris, France.

About Samsung Ventures America

Samsung Ventures America manages US investment and investment-related activities for Samsung Electronics and Samsung Venture Investment Corporation from local offices in San Jose. The investment mandate for Samsung Ventures America tracks closely to the strategic priorities of Samsung Electronics’ core operating divisions, and encompasses investments in semiconductors, displays, telecommunications, and consumer electronics. Samsung Ventures America is currently actively investing in leading technology companies from a $300 million fund.