X Software Releases Video Vault with DivX Video Technology

San Diego, CA—March 16, 2005– DivXNetworks, Inc., the company that created the patent-pending DivX® video compression technology, and X Software, a leading provider of DVD and video software, today announced that X Software will use DivX video compression technology to allow consumers to archive video in their newly launched Video Vault product.

“X Software has created a unique software product,” said Kevin Hell, Chief Operations Officer at DivXNetworks. “Video Vault allows consumers to import, convert, and organize their video library using high-quality, highly compressed DivX technology and export those videos back on a wide variety of devices including DivX Certified DVD players, Portable Video Players, Wireless Media Servers and more.”

Video Vault is a “Rossetta Stone” for the digital video age, delivering to consumers a single, simple, and organized storage location for their collection of DVDs, tapes, and computer videos which, at the click of a button, can be transferred and viewed on almost any device, from a PDA, laptop, Smartphone, DVD player and even emerging technologies such as personal video players and wireless media servers. DivX compression technology not only enables Video Vault users to store hundreds of high quality videos in the space of a few dozen, but also ensures compatibility with DivX Certified devices.

“DivX video technology provides our customers with excellent video compression quality and performance,” said X Software spokesperson Gary Wong. “We are excited to partner with DivXNetworks to provide Video Vault, a much-needed application which finally allows consumers a simple way to watch their videos wherever they want.”

For more information on licensing DivX video technology, visit www.divxnetworks.com/licensing. To learn more about Video Vault, see www.dvdxsoftware.com.

About DivX, Inc.

DivX, Inc. 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 250 million DivX software downloads. The patent-pending DivX video can acheive DVD-quality at a fraction of the size of MPEG-2/DVD 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. DivX, Inc. is headquartered in San Diego, California with satellite offices in Los Angeles and San Jose, Calif., Taipei, Taiwan, Tokyo, Japan, Guildford, England and Düsseldorf, Germany.

About X Software

X Software is a leading provider of DVD and Video software and offers a broad suite of advanced digital video and audio multimedia software products that enable users to store, edit, distribute and play digital multimedia content on PCs, consumer electronics and other devices. X Software has international sales and support and our customers and partners include retailers, distributors, manufacturers, OEMs and end users from around the world.