20 MILLION DIVX CERTIFIED DVD PLAYERS TO SHIP IN 2004

Retailers Seeing Unparalleled Demand For Devices That Support The Popular Video Technology

DivXNetworks, Inc., the company that created the revolutionary, patent -pending DivX® video compression technology, today announced that over 20 million DivX Certified DVD players from a wide variety of consumer electronics manufacturers are expected to ship worldwide by the end of 2004.


In Europe alone, DivX powered DVD players have represented 25% of the total market since July 2004, according to GFK research. For a list of DivX Certified DVD players currently available on the high street visit www.divx.com/hardware.

"The DVD player has become such a popular platform because it offers consumers a vastly improved video and audio experience," said Parks Associates' Vice President and Principal Analyst, Kurt Scherf. "DivX compatibility will grow increasingly important in continuing to expand consumers' entertainment experiences in the home as they want to watch all their digital content over their 'living room system' of TV, DVD player and surround sound system."

DivX is among the world's most popular video technologies with over 120 million global users accessing over 1.9 billion estimated DivX encoded files currently online. Additionally, all DivX Certified devices can securely playback DivX video -on -demand (VOD) titles downloaded from DivX content providers websites. Over 15,000 DivX VOD titles are currently online from over 75 content providers. Select DivX VOD titles can be downloaded, burned to a regular CD, and securely played back on any DivX Certified DVD player with no compromise in security or visual quality.

"DivX technology is breaking down barriers in the connected home, making it easy for consumers to move secure, high -quality content throughout the digital media ecosystem," said Managing Director Europe, Middle East & Africa of DivXNetworks, Mark Lawson. "The DivX Certification program extends the promise of information technology to the media universe, while enabling dynamic new markets for content providers, consumer electronics companies and retailers."

The momentum of DivX video in the consumer electronics market is projected to continue throughout 2005 with the release of a wide variety of DivX Certified devices, including High Definition DVD players, portable media players, digital cameras, set -top boxes, network -connected devices, DVD -Recorders, DVRs, and more. 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. By ensuring interoperability between products, the DivX® Certified Program enables consumers to play movies from the Internet and their computers on their televisions and transfer these movies across a range of DivX Certified devices and platforms.

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 120 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 Dortmund, Germany. For more information, visit http://www.divxnetworks.com.

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