DivX Acquires Technology for Enhanced Video Search and Discovery Services

SAN DIEGO & LAWRENCE, Kan.--(BUSINESS WIRE)--DivX, Inc. (NASDAQ: DIVX) announced today the acquisition of the assets of Veatros, L.L.C., a Kansas limited liability company. Veatros’s technology was designed to conduct real-time digital video processing and will be used by DivX primarily for the purposes of producing enhanced video search and discovery services. Veatros was spun out of the Information and Telecommunication Technology Center at the University of Kansas.

The Veatros technology, when integrated with the DivX Connected platform for enjoying network-based media in the living room, will provide users with a powerful, high-quality environment for managing and enjoying all their digital media through an easy-to-use interface. As digital media comes of age, more consumers are demanding greater connectivity and better solutions for finding media, on the PC, in the living room, and on the go. DivX provides widespread access to content through a range of products and platforms, with over 100 million DivX Certified devices from major partners including DVD players, digital televisions, digital still cameras, portable media players and mobile phones, as well as through Internet distribution platforms.

“DivX is building a better media experience in partnership with the world’s leading consumer electronics companies, and innovative search and discovery technology will be an important piece of that solution,” said Kevin Hell, Acting Chief Executive Officer of DivX. “Veatros’s assets will add powerful capabilities to our Connected platform that will allow consumers to more easily find and enjoy digital media content, and effortlessly add metadata such as cover art, director, and actors to all their video titles.”


“Veatros benefited from incubating the technology with support from the Information and Telecommunication Technology Center,” John Gauch, co-founder of Veatros and professor of electrical engineering and computer science (EECS), said. “We were able to focus on development and new applications for the inventions for several years while the market for our technologies developed. Now we are thrilled to work with DivX on a mature implementation.”

Victor W. Hwang, outgoing Chief Strategy Officer of Veatros and Managing Director of T2 Venture Capital, which backed Veatros in its recent growth, stated, “Veatros has been at the cutting edge of video processing research for years, and the Veatros team is extremely excited to see its technology put to use by a company as innovative as DivX.” T2 Venture Capital is the venture affiliate of Larta Institute, a nonprofit leader in technology commercialization sponsored in part by the Kauffman Foundation.

About DivX, Inc.

DivX creates products and services designed to improve the experience of media. Our first product offering was a video compression/decompression software library, or codec, which has been actively sought out and downloaded over 240 million times since January 2003, including over 80 million times during the last twelve months. We have since built on the success of our codec with other consumer software, including the DivX Player application, which is distributed from our website, www.divx.com. We also license our technologies to consumer hardware device manufacturers and certify their products to ensure the interoperable support of DivX-encoded content. In addition to technology licensing to consumer hardware device manufacturers, we currently generate revenue from software licensing, advertising and content distribution.

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 anticipated features, benefits and performance of the DivX Connected platform and products, and expectations for the timing for availability of certain DivX Connected devices or platforms to reach the retail market. 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: risks related to the implementation of the Veatros Technology; the risk that the DivX Connected platform may not provide features, benefits or performance at the levels and quality anticipated, the risk that DivX Connected devices may not be available to the retail market when expected, or at all, 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; DivX’s ability to penetrate existing and new markets; 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 quarterly report on Form 10-Q filed with the SEC on August 14, 2007. 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.


DivX, Inc.
Tom Huntington,