Gardena, CA - January 18, 2007 -
TMPG, Inc. (www.tmpg-inc.com), the company that makes digital video easy, is set to add TMPGEnc DVD Author 3 with DivX Authoring software to its growing TMPGEnc line. Offering many new features and some terrific advancements over its predecessors, the new product is the perfect, all-in-one DVD authoring solution for any video enthusiast, whether a beginner or an experienced videographer. Release date is scheduled for late January 2007 (French and German version available Q2 2007).

“Users will enjoy the many great enhancements our TMPGEnc DVD Author 3 with DivX Authoring offers,” stated Kimi Matsuki, TMPG CEO. “These include HDV capture, DivX authoring, multiple subtitle streams, and the ability to import popular video formats for authoring to DVD or DivX. Of course, they can still cut-edit, create custom menus, and burn projects to a CD (DivX only) or DVD to show others.”

Main Features
With DivX authoring capability, DivX projects can now have great DVD-like menus and navigation. DivX projects made with TMPGEnc DVD Author 3 with DivX Authoring enjoy the ultimate combination of DVD-like presentation with DivX technology. Finished products may be played with DivX Player software on a PC, or on any DivX Certified DVD player and a television or compatible home theater system.

Capturing video directly from a DV or HDV camcorder is an unbelievably effortless process with the DVD Author 3 with DivX Authoring software. The camcorder simply plugs into a PC via an IEEE 1394 interface. The software then views the contents, adding it as a source file.

TMPGEnc DVD Author 3 with DivX Authoring improves format input, allowing inclusion of other types of source files. These include: DVD-VIDEO, DVD-VR, MPEG1/2, AVI, Windows Media, DivX, and QuickTime (mov, mp4, 3gp, 3g2) file formats.

Since the new TMPGEnc software can utilize up to two subtitle streams simultaneously, it is possible to create a DivX or DVD file with subtitles appearing in more than one language. It is also possible to import subtitles from a DVD-Video or .srt file, then edit them with the subtitle editing tool which provides numerous text format and layout options.

When using TMPGEnc DVD Author 3 with DivX Authoring, users are given the flexibility of utilizing either the built-in menu templates or creating their own. With a robust menu creation process, it allows quick and easy menu customization. Users can freely position and resize titles, thumbnail images, and text; create stunning motion menus that put life into any production; as well as change highlight colors and screen ratios. Then, before burning to a disc, it can be previewed in the menu simulator. While playable on all DivX Certified devices, only DivX Ultra Certified devices will have access to these advanced features.

Special Smart Rendering technology makes encoding with TMPGEnc DVD Author 3 with DivX Authoring faster, allowing users to edit and output DivX and DVD projects much quicker than other authoring software.

Availability
TMPGEnc DVD Author 3 with DivX Authoring will be available for downloading at www.tmpg-inc.com beginning late January 2007 at a price to be determined.

About TMPG, Inc.
TMPG, Inc. makes digital video easy. Headquartered in Gardena, California, the company was established early in 2003, built on a solid foundation of technology developed by its parent company, Pegasys Inc. The company's two flagship products, the TMPGEnc video encoder series and the new TMPGEnc DVD Author, anchor a strong line of retail and OEM digital video editing and encoding products for home and professional users.

The recognized leaders in developing quality video encoding tools for MPEG applications, TMPG Inc.'s encoding technology is also incorporated into numerous commercial and professional video editing and DVD-creation software products. Applications developed by its parent, PEGASYS, have been bundled with quality products from top worldwide manufacturers, including Sony Japan and Pioneer Australia. For more information about TMPG, Inc. and its products, visit the company's website at www.tmpg-inc.com.

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 200 million times in the last four years, including over 60 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, http://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 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; 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 November 13, 2006. 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.