Hauppauge to Introduce Home Multimedia Box Based on DivX Connected Platform That Brings HD Video and Internet Services from the PC to the Living Room

DivX Connected Platform Offers Consumers Open, High-Quality multimedia player for LCD and Plasma TV sets

SAN DIEGO--(BUSINESS WIRE)--DivX, Inc. (NASDAQ:DIVX), a digital media company, today announced an agreement with Hauppauge Digital, Inc. (NASDAQ:HAUP) to release a device based on the DivX Connected™ platform.

“DivX Connected offers our customers an open platform that can accept plug-ins, which will expand the types of media which can be played on a TV set.”

DivX Connected is an open platform that can be easily embedded into a wide variety of consumer electronics devices from different manufacturers, enabling consumers to deliver their favorite media from the PC and the Internet, including high-definition videos, directly to the living room. In addition to streaming videos, photos and music stored on a local hard drive, consumers can access Internet services and plug-ins showcasing a wide variety of content. Unlike “closed” platforms, DivX offers an easy-to-use developer API that lets anyone create a plug-in for their favorite Internet service to enjoy in the living room on a DivX Connected device.

Hauppauge, a leading developer and manufacturer of analog and digital TV receiver products, will become the second manufacturer to release a device based on the DivX Connected platform. The Hauppauge device is expected to be available in retail in the second half of 2008.

“DivX Connected is a key platform that bridges the gap between the PC and living room in a seamless, high-quality way, and we’re very pleased to partner with Hauppauge to bring a new device to consumers,” said Kevin Hell, CEO of DivX, Inc. “We believe that consumers benefit from our open approach, which makes it easy for a variety of different kinds of devices to implement the DivX Connected platform at an affordable price, and lets anyone create and enjoy plug-ins that bring virtually any Internet service to the living room.”

“Hauppauge, through our WinTV product line, is the leader in bringing high definition TV watching and recording to PCs. We are excited to offer our consumers a DivX Connected box which will play high definition recorded videos in the living room,” said Ken Plotkin, President of Hauppauge. “DivX Connected offers our customers an open platform that can accept plug-ins, which will expand the types of media which can be played on a TV set.”

For more information on DivX, see www.divx.com. For more information on Hauppauge see www.hauppauge.com.

About Hauppage

Hauppauge Digital, Inc. (NASDAQ:HAUP) is a leading developer and manufacturer of digital TV and data broadcast receiver products for personal computers. Through its Hauppauge Computer Works, Inc. and Hauppauge Digital Europe subsidiaries, the Company designs and develops digital video boards for TV-in-a-window, digital video editing and video conferencing. The Company is headquartered in Hauppauge, New York, with administrative offices in New York, Singapore, Taiwan, Ireland and Luxembourg and sales offices in Germany, London, Paris, The Netherlands, Sweden, Italy, Spain, Singapore and California. The Company’s Internet web site can be found at http://www.hauppauge.com.

Hauppauge and WinTV are registered trademarks of Hauppauge Computer Works, Inc. Other product or service names herein are the trademarks of their respective owners .

About DivX, Inc.

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.

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 quarterly report on Form 10-Q filed with the SEC on November 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.