Integration of DivX® Video Encoding and Decoding Will Allow Hauppauge Users to Record and View TV Shows in DivX on PC and TV

DivXNetworks, Inc., the company that created the patent -pending DivX® video compression technology, and Hauppauge Computer Works (NASDAQ: HAUP), a leading manufacturer of digital media products, today announced a technology licensing and development agreement to include DivX video technology in Hauppauge's leading line of WinTV receivers and recorders as well as the Hauppauge MediaMVP Digital Media Receiver. Hauppauge products are on display at the CeBIT technology fair in Hannover, Germany at Hall 23, Booth 51.

The addition of DivX technology to the Hauppauge product line will allow users to record television content in high -quality DivX on their PC and then easily transfer that content to a home theatre. The WinTV line of products enables PC users to watch and record television content, and Hauppauge consumers can now record their favourite TV shows using the high -quality DivX codec. Often called the "MP3 of video," DivX is among the world's most popular video technologies with over 120 million global users. The superior compression and visual quality of DivX video enables users to store and distribute DVD -quality videos at 1/10th the size of MPEG -2, the DVD standard.

Hauppauge will also offer DivX support for the innovative MediaMVP digital media receiver. MediaMVP is a device that connects to a television and receives digital media (music, videos and pictures) from a PC over a home network. The addition of DivX support will allow users to play DivX movies stored on a PC hard drive directly on a television. The MediaMVP also supports the conversion of PAL video to NTSC format, and vice versa, enabling DivX users to convert content recorded into one format for playback in another. To support Hauppauge's end -to -end solution for home media delivery, DivX content recorded on the PC will initially be transcoded into MPEG for playback on the MediaMVP. Hauppauge will work with DivXNetworks to obtain official DivX Certification for the MediaMVP in the near future, enabling users to directly decode all versions of DivX video on the device.

"DivX is an immensely popular and powerful video compression technology with a significant global brand, and we're excited to add DivX support to our WinTV and MediaMVP products," said Ken Plotkin, CEO of Hauppauge Computer Works. "Users can now record all their favourite TV shows in DivX on their PCs using WinTV and then easily playback that content on their TV sets with the MediaMVP."

"Hauppauge has a clear and compelling vision of the networked multimedia home, and its products are leading the way to a high -quality, affordable connected consumer experience," said Mark Lawson, Sales Director, Europe DivXNetworks, Inc. "The DivX brand fits perfectly with the Hauppauge product line, and we are excited to enable our users to easily move their DivX videos beyond the PC. We look forward to working with Hauppauge to obtain full DivX Certification for the MediaMVP product in the future."

About DivXNetworks
DivXNetworks is a consumer -focused video technology company positioned at the centre 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 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, California, with satellite offices in Los Angeles and San Jose, CA, Taipei, Taiwan, Guildford, UK and Dortmund, Germany. For more information, visit http://www.divxnetworks.com.

About Hauppauge Digital, Inc.
Hauppauge Digital, Inc. (NASDAQ: HAUP) is a leading developer of digital video TV and data broadcast receiver products for personal computers. Through its Hauppauge Computer Works, Inc. and Hauppauge Digital Europe subsidiaries, the Company designs and develops analog and digital TV receivers that allow PC users to watch television on their PC screen in a resizable window and enable the recording of TV shows to a hard disk, digital video editing, video conferencing, receiving of digital TV transmissions, and the display of digital media stored on a computer to a TV set via a home network. The Company is headquartered in Hauppauge, New York, with administrative offices in New York, Singapore, Ireland and Luxembourg and sales offices in Germany, London, Paris, The Netherlands, Sweden, Italy, Spain, Singapore and California. The Company's Internet web site can be found at http://www.hauppauge.com .

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