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International Release of New DivX Video Software Offers New Levels of Visual Quality, Interoperability and Performance

Business Wire, July 19, 2004

SAN DIEGO -- New Features in DivX 5.2 Enable 300% Faster Encoding Speed Than Windows Media; Products and Website Available in Multiple Languages

DivXNetworks, Inc., today announced the international release of the next generation of DivX(R) video software technology products -- DivX Pro 5.2, DivX 5.2 and Dr. DivX 1.0.5. The new version of the patent-pending DivX video compression technology, which is offered for the first time in French, German and Japanese in addition to English, is available for download at www.divx.com/divx.> The new suite of DivX video software offers the best compression ratios, visual quality and performance on the market, with internal tests showing 30% better visual quality and up to 300% faster encoding speed than Microsoft Windows Media 9 video technology. All DivX software products are fully interoperable with the complete line of DivX Certified consumer electronics devices, enabling users to create high-quality video on their PCs and easily transfer and play back that content on the millions of DivX Certified DVD players, portable video players and home entertainment products available at retail outlets worldwide.

DivXNetworks released new versions of their three core software products -- DivX Pro 5.2, the premium version of the video codec with advanced encoding tools; DivX 5.2, an updated version of the company's free encoder, decoder and player; and Dr. DivX 1.0.5, an easy-to-use video encoding software that lets anyone create DivX video in 3 steps and includes DivX Pro.

Key features of the new release include:

--Support for Multiple Languages -- DivX Pro 5.2, DivX 5.2 and the official DivX website (www.divx.com) are now available in four languages -- English, French, German and Japanese.

--Adaptive Single and Multiple Consecutive B-Frames -- Advanced encoding feature allows for smaller file size and improved visual quality.

--Multiple Quantization Matrices -- New feature enables more versatile codec performance at various bitrates for improved scalability.

--Built-in Bitrate Calculator -- User-friendly tool enables encoder to automatically calculate correct bitrate for desired file size.

--New Fast Mode -- New encoder setting improves compression and quality of live capture, offering greater scalability and versatility for the user.

"The DivX video experience has always been based on providing our users with the best video technology and making it as easy as possible to use that technology in a seamless way," said Jerome Rota, creator of DivX technology and co-founder of DivXNetworks, Inc. "With the release of DivX 5.2, our team of video engineers has brought the DivX experience to new heights. Not only does our technology performance exceed any other codec on the market, but our core products and website are now available in multiple languages to better serve the huge international audience of DivX users. With the explosion of DivX Certified DVD players and DivX-powered multimedia software products that take advantage of our new features, DivX content is completely interoperable across an entire ecosystem of devices and platforms."

The suite of DivX video software products can be downloaded on the company's official website, DivX.com. DivX Pro 5.2 is available for a one-time personal use-fee or through a new 6-month free trial version, and DivX 5.2 is offered as a free download. Dr. DivX 1.0.5 is available for a one-time fee or through a 15-day free trial. For more information, visit www.divx.com/divx.> 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(R) video codec, among the world's most popular video compression technologies with over 130 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, with satellite offices in Los Angeles and San Jose, Calif.; Taipei, Taiwan; Tokyo; Guildford, England; and Dortmund, Germany.