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Strand Releasing and DivXNetworks Launch Video-on-Demand Service

September 6, 2001

Full-Length Feature Film “World and Time Enough” Sold For Download in High-Quality DivX Format

SAN DIEGO, September 6, 2001-DivXNetworks, Inc., the company that created DivXTM video compression technology enabling the efficient delivery of high-quality, full-screen video over the Internet, today announced the launch of a video-on-demand service with Strand Releasing, the innovative film distribution company. Strand Releasing has licensed the DivX Open Video SystemTM to sell a high quality download of the award-winning 1995 film World and Time Enough online at www.strandreleasing.com.

World and Time Enough is the first feature available online using the DivX Open Video System, the complete video-on-demand solution developed by DivXNetworks. A number of additional content partners who have licensed the system are slated to launch in the coming weeks.

The new service will allow consumers with high-speed Internet connections to purchase a 5-day rental of the film for $4.95 from the Strand Releasing web site and begin viewing the film almost immediately. Users can download World and Time Enough by simply clicking on the “Buy Now” link at www.strandreleasing.com and filling out payment information. Once the film has been downloaded, customers are free to watch the film on-demand for the next five days. Thanks to DivXNetworks “progressive download” technology, users can begin viewing the film in full-screen, high-quality format a few minutes after the download has begun.

“We’re excited to partner with Strand Releasing to enable the online distribution of this excellent film in a high-quality visual format that matches the artistic quality of this movie,” said Jordan Greenhall, co-founder and CEO of DivXNetworks (www.divxnetworks.com). “Strand Releasing has earned a reputation as a leader in the independent film community, and they have once again proven to be a pioneer by becoming one of the first companies to embrace secure, high-quality video-on-demand.”

Written and directed by Eric Mueller, World and Time Enough received strong critical acclaim upon its initial release and won the Audience Award at the 1994 San Francisco International Lesbian and Gay Film Festival. A clever and bittersweet comedy, World and Time Enough tracks the aspirations of a twenty-something couple as they grapple with love and morality. Throughout the last decade, Strand Releasing has earned a reputation as a leader in the distribution of acclaimed independent and foreign films such as Edge of Seventeen, Steam, and Wild Reeds.

“The new technology created by DivXNetworks has given us the confidence that our motion pictures will be presented with the utmost quality and security in a very user-friendly format,” said Jon Gerrans, Co-President of Strand Releasing. “We are very pleased to be partnering with DivXNetworks and looking forward to the possibilities of this new video-on-demand arena.”

“I’m pleased that more people will get a chance to see our film online,” said Eric Mueller, director of World and Time Enough. “I’m very proud of the work we did on World and Time Enough, and Strand Releasing has proved to be a strong advocate for us every step of the way.”

DivXNetworks has leveraged the success of DivX video compression technology to build and deploy the Open Video System (OVS), an end-to-end solution for the secure, profitable delivery of high quality video-on-demand. The OVS utilizes the world class MPEG-4 compliant DivX video compression technology, a proprietary digital rights management solution to ensure security, and a complete delivery management infrastructure. Strand Releasing is among the first content partners to utilize the recently launched OVS.

To purchase a high-quality download of World and Time Enough today, visit www.strandreleasing.com. For more information on DivXNetworks and DivX technology, visit www.divx.com.

About DivXNetworks
DivXNetworks is a leading technology company that enables the rapid proliferation of video content over Internet Protocol (IP) networks by combining the lightweight, ubiquitous access of the Internet with DVD-quality video performance. The company’s approach is built upon the success of the DivXTM codec, a leading standard for MPEG-4 video distribution with over 20 million users worldwide, and the DivX Open Video SystemTM, a next-generation content delivery system that provides unsurpassed aggregation, promotion, and distribution of video content for mass markets. The DivX codec has been evolved using an innovative approach that combines open source development and comprehensive in-house testing to create a product with powerful brand recognition, rapid product evolution, and pervasive platform integration. DivXNetworks is headquartered in San Diego, California, with satellite offices in New York and Los Angeles. For more information about DivXNetworks, visit http://www.divxnetworks.com.

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