DIVX Divx, Inc. (MM)

SAN DIEGO and BERLIN, Sept. 2 /PRNewswire/ -- DivX, Inc. (Nasdaq: DIVX), a leading digital media company connecting people and entertainment, today announced at the IFA trade show a new cooperation with Media Markt, Europe's largest consumer electronics retailer, to launch a online movie store for the German market. Now available at http://video-download.mediamarkt.de, this new service enables the digital distribution of a broad catalogue of high-quality, premium movie titles compatible with millions of DivX devices from all major CE brands.

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Media Markt is Germany's and Europe's Number One electrical goods retailer. Media Markt has partnered with DivX to bring premium protected movie downloading to its customer base in Germany. Media Markt customers who try this new movie download service are guaranteed secure playback beyond the PC on any device that bears the DivX Certification logo.

DivX technology enables consumers to enjoy high-quality digital video on any kind of device, regardless of connectivity or manufacturer. Over 300 million DivX devices have shipped into the market worldwide, ranging from Blu-ray players to gaming consoles, digital televisions as well as a wide variety of other consumer electronic devices. Consumers are free to transfer their DivX movies via DVDs, USB drives, SD memory cards, and portable hard drives, or stream content over a home network for playback on their registered DivX Certified devices. DivX Certified devices now support the secure playback of major Hollywood titles from studios including Warner Bros., Paramount, Sony Pictures, Starz Media's Overture Films and Lionsgate.

As part of the agreement, DivX is managing the back-end infrastructure that allows the user to download and playback the content securely on DivX Certified devices from the Media Markt site. In addition, DivX is also working with Nowtilus, the market leader for ready-to-use video on demand solutions in Germany, to integrate its on-demand solution which manages all technical distribution processes from licensing to encoding, from film delivery to payment.

"We are thrilled that an industry giant such as Media Markt recognizes the value that DivX brings to consumers for secure playback of Hollywood movies on any kind of DivX Certified consumer electronics device," said Matt Milne, Executive Vice President, Sales and Marketing at DivX, Inc. "Our new service with Media Markt will help us continue to deliver on our mission of connecting people with entertainment, regardless of geography or device type."

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

For more information about Media Markt, visit www.mediamarkt.de

For more information about Nowtilus, visit www.nowtilus.tv/website_main/

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 300 million DivX devices have shipped into the market worldwide 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.

On June 2, 2010, DivX, Inc. and Sonic Solutions announced a proposed merger transaction.  Sonic Solutions has filed with the Securities and Exchange Commission (the "SEC") a registration statement on Form S-4 containing a preliminary joint proxy statement/prospectus in connection with the proposed merger and both companies intend to mail a definitive joint proxy statement/prospectus and other relevant documents to Sonic and DivX shareholders following such time that the registration statement is declared effective by the SEC.

About Media Markt

Media Markt is Europe's Number One electrical goods retailer. The success enjoyed by the company, which was founded in 1979 and is housed under the roof of Media-Saturn-Holding GmbH, is based on a unique selection of low-priced brand-name products, competent staff, excellent service, a distinctive advertising presence and a decentralized organizational structure. Each general manager is a shareholder in his own store and is thus responsible for the products offered, as well as for pricing, personnel and marketing. At present, Media Markt has 235 stores in Germany and 589 stores in 14 European countries.

About Nowtilus

Founded in July 2007, the NOWTILUS Onlinevertriebsgesellschaft mbH is based in Halle/Saale and Berlin. NOWTILUS is focused on digital distribution and the establishment of On Demand Entertainment on websites with a high scope as well as on IPTV and mobile devices. Target group of our services are operators of online portals as well as TV broadcasters, telecommunication providers, cable network operators and brand manufacturers.

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 the availability of certain DivX enabled products to consumers. 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 related to the effect of intellectual property rights claims; risks related to DivX's partners' ability to make certain products available to consumers on specified timelines, or at all; 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.

Additional Information

This press release is not a solicitation of a proxy, an offer to purchase, nor a solicitation of an offer to sell shares of Sonic Solutions, and it is not a substitute for any proxy statement or other filings that may be made with the SEC with respect to the proposed merger.  In connection with the proposed merger, Sonic Solutions has filed a registration statement on Form S-4 containing a joint proxy statement/prospectus of Sonic Solutions and DivX. Investors and security holders are urged to carefully read the Registration Statement on Form S-4 and related joint proxy statement/prospectus and other documents filed with the SEC by Sonic Solutions and DivX, because they contain important information about Sonic Solutions, DivX and the proposed transaction, including with respect to risks and uncertainties that could delay or prevent the completion of the transaction. Such documents are available free of charge at the SEC website (http://www.sec.gov/), from Sonic Solutions and its corporate website (www.sonic.com) or from DivX and its corporate website (http://www.divx.com/).

Sonic Solutions, DivX and their respective directors, executive officers and other members of their management may be deemed to be soliciting proxies from shareholders of Sonic Solutions or DivX in favor of the proposed merger. Investors and stockholders may obtain more detailed information regarding the direct and indirect interests in the proposed merger of persons who may, under the rules of the SEC, be considered participants in the solicitation of these shareholders in connection with the proposed merger by reading the joint proxy statement/prospectus described above. Additional information about the directors and executive officers of Sonic Solutions may be found in its definitive proxy statement filed with the SEC on October 1, 2009. Additional information about the directors and executive officers of DivX may be found in its definitive proxy statement filed with the SEC on April 20, 2010. Such documents are available free of charge at the SEC website (http://www.sec.gov/), from Sonic Solutions and its corporate website (http://www.sonic.com/) or from DivX and its corporate website (http://www.divx.com/).

SOURCE DivX, Inc.