DivX and Starz Media Sign Agreement for Digital Distribution in the DivX(R) Format

LAS VEGAS, Jan. 6 /PRNewswire-FirstCall/ -- DivX, Inc. (Nasdaq: DIVX), a leading digital media company, and Starz Digital Media, an operating division of Starz Media LLC, today announced a multi-year format approval agreement. This is the first step in enabling online retailers worldwide to offer films and TV programming produced or distributed by Starz Media for secure download in the high-quality DivX® format.

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Content covered under the format approval agreement includes:

* Feature-films from Overture Films and Anchor Bay Entertainment including recent Overture releases such as Sunshine Cleaning, Law Abiding Citizen, The Men Who Stare at Goats, Capitalism: A Love Story, and Pandorum;

* Movies and TV episodes from Manga Entertainment, Starz Media's anime division, including Ghost In The Shell, Street Fighter, Blood: The Last Vampire, Astro Boy, Strait Jacket, Dead Space, and Gurren Lagann

* Starz Originals from the flagship Starz premium pay TV channel including,

"Head Case" and "Martin Lawrence Presents 1st Amendment Stand-up."

This agreement paves the way for consumers to have the freedom to watch Starz original programming, Starz Media content, and Overture Films movies on millions of DivX Certified® devices that have shipped worldwide, including digital TVs, Blu-ray players, and a variety of mobile devices. DivX technology allows movies to be compressed to a fraction of their original size for easy downloading and playback, while still maintaining excellent visual quality.

In the United States, Starz Digital Media has recently put in place an agreement with DivX-powered Film Fresh to offer Starz content in the DivX format. Starz Digital Media's agreement with Film Fresh makes www.filmfresh.com the first online storefront authorized to offer Starz content in the DivX format. Film Fresh is already home to thousands of movies from Hollywood studios and independent film makers in the high-quality DivX format.

"We're pleased to be working with Starz and adding such a great variety of TV and feature film content to the DivX ecosystem," said Kevin Hell, Chief Executive Officer at DivX. "Starz is our fifth major studio to approve the DivX format, and this deal demonstrates Hollywood's enthusiasm for the versatile, high quality experience that DivX technology provides across the PC, the television and the mobile phone."

"DivX technology is synonymous with quality," said Marc DeBevoise, senior vice president of Digital Media, Business Development and Strategy at Starz Media and the lead executive for Starz Digital Media. "By partnering with DivX, we are meeting our customers' demand for a high-quality and exceptionally portable viewing experience as they watch their favorite series and feature films from us."

Products that bear the DivX Certified logo have undergone a rigorous testing program to ensure a high-quality DivX media experience, including reliable video creation and playback, interoperability with other DivX Certified devices and the visual quality users expect from DivX.

For more information about DivX, visit www.divx.com.

About DivX

DivX, Inc. is a leading 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 250 million DivX 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 Starz Digital Media

Starz Digital Media, an operating division of Starz Media, LLC, is responsible for all digital and on-demand distribution of library content from Overture Films, Anchor Bay Entertainment, Starz Originals from Starz Entertainment, and Manga Entertainment. Through a range of distribution and marketing partnerships with multichannel video providers, Internet distributors and wireless operators worldwide, Starz Digital Media makes its content available under numerous business models including download-to-own/electronic sell-through, video-on-demand, pay-per-view, subscription video-on-demand and ad-supported streaming. The division also programs and supports numerous ad-supported broadband channels and develops games and gaming-related content from many of its properties for distribution worldwide.

About Film Fresh

Film Fresh Inc. operates an online film destination found at FilmFresh.com. It is a private company based in Los Angeles. On its Web site, the company offers Hollywood, Independent, World and Kids content for purchase in DivX download format and on DVD. Film Fresh also provides news, opinion and community to film lovers. The company aims to provide a variety of film experiences to diverse audiences, utilizing both traditional and emerging platforms.

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 and statements regarding the online availability of premium content in the DivX format. 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; the risk of DivX's dependence on its licensees and partners; risks that certain premium content may not be available for download in the DivX format as quickly as anticipated, if at all; risks related to 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. 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.

SOURCE DivX, Inc.