Vestel First to Announce DivX STB for European Market

DivX, Inc. (NASDAQ:DIVX), a digital media company, and Vestel A.S. announced plans today to release a new STB from Vestel supporting the high-quality playback of DivX video. The new STB is currently being certified by DivX and is the first DivX capable STB to be announced for the European market, expanding the DivX ecosystem in this important emerging category.

Vestel is the world’s third largest original design manufacturer for consumer electronics and a prominent producer of STB solutions for the European market. Vestel’s DivX capable STB, the t5000, is the first device of its kind to be announced for the European market. The t5000 enables consumers to seamlessly play back high-quality DivX video stored on personal USB flash drives and complements the ecosystem of DivX Certified® devices on the market including Blu-ray players, digital televisions, mobile phones, and digital cameras. The new STB is currently being certified by DivX and will be capable of being updated to full DivX compatibility through a firmware field upgrade.

"A key defining trend of advanced television services is the convergence of video content from numerous sources,” said Kurt Scherf, Vice President and Principal Analyst with Parks Associates. "The ability of set-top box manufacturers to support high-quality video solutions – including DivX – will be a critical factor in their ability to offer flexible and unique viewing experience to television subscribers. The new DivX capable set-top box from Vestel is a good example of the type of integration we should expect in the future.”

"With the growing demand for devices that play back DivX video, it was natural to ensure that our latest STB was capable of supporting the standard,” said Zafer Prim, Product Manager responsible for Digital Products at Vestel A.S. "Consumers all over Europe have embraced DivX as a way to enjoy high-quality video from the PC in the living room and we are pleased to work with DivX in delivering a premium experience.”

"The STB market is an important new category for DivX and the t5000 further highlights our mission of providing consumers with a high-quality media experience across any device,” said Kevin Hell, Chief Executive Officer, DivX, Inc. "Working with Vestel has enabled us to continue expanding the DivX ecosystem into a new product category and we are delighted that consumers will be able to enjoy their favorite digital content with this device. We look forward to this device becoming fully DivX Certified.”

Products that bear the DivX Certified® logo have undergone a rigorous testing program to ensure a high-quality DivX media experience that includes reliable video playback and excellent visual quality. DivX is currently working to certify Vestel’s t5000 STB and, upon DivX Certification, full functionality will be made available through a future firmware update.

To learn about DivX technology, please visit www.divx.com.

About DivX

DivX, Inc. is a digital media company that enables consumers to enjoy a high-quality video experience across any kind of device. DivX creates, distributes and licenses digital video technologies that span the "three screens” comprising today’s consumer media environment—the PC, the television and mobile devices. Over 100 million DivX Certified devices have shipped into the market from leading consumer electronics manufacturers. DivX also offers content providers and publishers a complete solution for the distribution of secure, high-quality digital video content. Driven by a globally recognized brand and a passionate community of hundreds of millions of consumers, DivX is simplifying the video experience to enable the digital home.

About Vestel

Vestel Group is comprised of 24 companies operating in manufacturing, technology development, marketing, and distribution fields in the consumer electronics, IT, digital technologies, and household appliances, with € 3.7 billion turnover. Vestel is the largest TV manufacturer in Europe, accounting for 21% of the total TV, and 11% of the LCD TV, as well as 25% of the digital set-top boxes markets in Europe.

Forward-Looking Statements

Statements in this press release that are not strictly historical in nature constitute "forward-looking statements." Such statements include, but are not limited to, statements regarding DivX's visibility within the investment community. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause DivX's actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements. These factors include, but are not limited to: the risk that customer use of DivX technology may not grow as anticipated; the risk that anticipated market opportunities may not materialize at expected levels, or at all; the risk that the Company’s activities may not result in the growth of profitable revenue; risks and uncertainties related to the maintenance and strength of the DivX brand; risks associated with DivX's ability to penetrate existing and new markets; risks regarding the effects of competition; DivX's dependence on its licensees and partners; the effect of intellectual property rights claims; and other factors discussed in the "Risk Factors" section of DivX's most recent report filed with the Securities and Exchange Commission on August 8, 2008. All forward-looking statements are qualified in their entirety by this cautionary statement. DivX is providing this information as of the date of this release and does not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.