DivX Announces Licensing Agreement with Sigma Designs That Includes Next-Generation DivX Plus(TM) Certification

SAN DIEGO -- Jan. 8, 2008 -- DivX, Inc. (Nasdaq: DIVX - News), a digital media company, today announced a broad licensing agreement with Sigma Designs (Nasdaq: SIGM - News), a leader in digital media processing system-on-chip (SoC) solutions for consumer electronics. Under the agreement, DivX will incorporate its technology in a range of integrated circuit (IC) solutions from Sigma for consumer electronics products including IPTV set-top boxes, Blu-ray players, HDTVs, digital media adapters and personal media players.

The agreement also addresses the recently announced DivX Plus(TM) HD certification program. DivX Plus is the next standard of DivX Certification(TM), offering support for the latest version of DivX® technology included in the released Version 7 of the DivX software available on DivX.com. DivX 7 is based on the next-generation H.264 video standard, offering true HD video with high-quality AAC audio. DivX Plus certified devices will also be fully compatible with all previous versions of DivX video, offering consumers a comprehensive solution for the majority of high-quality Internet video.

"Consumers have embraced DivX technology as a part of their ecosystem for playing back high-quality video on a range of devices," said Ken Lowe, vice president of strategic marketing at Sigma Designs. "The addition of H.264 technology to the new DivX Plus offering further extends the DivX value proposition by extending support for the newest standard of high-quality video."

"Sigma Designs is a leading provider of premium multimedia integrated circuit solutions, and their decision to adopt DivX Plus Certification only reinforces their position as a leader in the market," said Kevin Hell, Chief Executive Officer, DivX, Inc. "We look forward to working with Sigma to add DivX support to their IC products which power a variety of consumer electronics products."

For more information on DivX Certification, 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 Sigma Designs, Inc.

Sigma Designs is a leading fabless semiconductor provider of highly integrated system-on-chip (SoC) solutions that are used to deliver multimedia entertainment throughout the home. Sigma's SoC solutions include media processing, wireless communications, and video image processing along with system software to form the critical components of consumer electronic products that include Internet protocol TV (IPTV) set-top boxes, Blu-ray players, high definition televisions (HDTV), and media communication devices. Headquartered in Milpitas, Calif., Sigma Designs has direct sales representatives in the United States, Europe (Belgium), China, Japan, Taiwan and a third-party distributor in Korea. For more information, please visit Sigma Designs' web site at www.sigmadesigns.com.