Ittiam and DivXNetworks partner to deliver DivX Certified solutions for Portable Digital Video products

Agreement will bring highly anticipated DivX Certified™ devices to market for holiday season

Bangalore, India and San Diego, California, USA. June 26, 2003 - Ittiam Systems and DivXNetworks, Inc., the company that created the revolutionary, patent-pending DivX® video compression technology, today announced a partnership to deliver solutions that will enable DivX Certified™ digital still camera (DSC), digital video camera (DVC) and portable products in time for the 2003 holiday season. The target platform for this range of digital video products is the TMS320DM270™ from Texas Instruments, an official DivX Certified partner company. In the future, solutions will be available on a wider range of platforms depending on the application and market demand.

DivX video, which offers DVD-quality at 7-10 times greater compression than MPEG-2, is the world's most popular MPEG-4 compatible video compression technology with over 85 million worldwide users. Ittiam will work with the team of video engineers at DivXNetworks to design solutions to power a variety of portable video products with full encoding and decoding capability for all versions of DivX video. A wide range of DivX Certified consumer electronics devices including portable video players, DVD players, digital still and video cameras, and set-top boxes are scheduled to hit the market in 2003.

"Ittiam's proven expertise in creating high-performance, cutting edge digital video solutions for DSP systems makes them an excellent partner to help DivXNetworks meet the overwhelming global demand for DivX Certified CE devices," said Shahi Ghanem, president and chief operating officer at DivXNetworks, Inc. (www.divxnetworks.com). "Millions of DivX users around the world are anxiously awaiting the release of DivX Certified devices and CE manufacturers are rushing to meet this demand in time for the holiday season. Our partnership with Ittiam will help ensure that CE manufacturers can create high-quality DivX powered solutions in the fastest possible timeframe. In fact, we already have the first customer for this partnership."

Ittiam Systems is a digital signal processing company singularly focused on creating world-class DSP systems and IP in media processing and communications. Ittiam has deep expertise in video technology and in building digital media systems. This ranges from video players, cameras and network cameras to video conferencing. Ittiam's video technology has been licensed to world-leading semiconductor and equipment manufacturing companies around the world.

"This is a partnership with tremendous potential," said Srini Rajam, chairman and chief executive officer of Ittiam Systems. "The world renowned DivX video compression technology and Ittiam's expertise in video systems and products are perfect ingredients to produce solutions far ahead of the competition. We are looking forward to the immediate opportunity during this year's holiday season as well as the vast long-term market potential through this partnership."

"Ittiam's video products have been licensed by customers across Europe, Asia and North America," said Rohit Bhuva, vice president of business development for Ittiam. "With DivXNetworks, we aim to reach out to a whole new set of appliances and consumers".

"We are pleased to work with Ittiam to provide comprehensive streaming media solutions to our customers," said Tom Kelly, business manager, streaming media group, Texas Instruments. "Ittiam's strength in customized reference design solutions for digital video products enables developers using TI DSPs to build more powerful and innovative streaming media applications, ultimately lowering development costs and offering time-to-market advantages."

The DivX Certification program for consumer electronics devices includes a full DivX software development kit as well as rigorous certification testing for visual quality and performance standards. Official DivX Certified partners receive marketing, sales and engineering support focused on helping third party development and OEM partners create DivX Certified consumer electronics solutions such as DVD and portable players, set top boxes, PVR and digital video and still cameras. For more information on DivX certification process, visit www.divxnetworks.com/certified.

About DivX
DivXNetworks is a consumer-focused video technology company positioned at the center of multimedia convergence. The company's core offering is the DivX ® video codec, the world's most popular MPEG-4 compatible video compression technology with over 85 million users worldwide. Often called "the MP3 of video," the patent-pending DivX video technology offers DVD-quality at 10 times greater compression than MPEG-2 files, enabling full length films to easily fit on a CD or be delivered over broadband connections. DivX video technology powers a range of applications that span the convergence value chain, from a secure IP-based video-on-demand solution to next-generation consumer electronics products and video software applications. DivXNetworks is headquartered in San Diego, California, with satellite office in Los Angeles, San Jose, Taiwan and Japan. For more information, visit www.divxnetworks.com.

About Ittiam
Ittiam Systems Private Limited, headquartered in Bangalore, is a technology product company singularly focussed on digital signal processing systems in media and communication. The company operates through its network of offices and representatives around the world. Ittiam's customers include Fortune 100 companies and are distributed across U.S., Europe, Japan and Asia. For more information, visit www.ittiam.com.