Professional Motion Picture Production and Distribution NEWS

(San Diego, CA) DivX, Inc. (Nasdaq: DIVX), a digital media company, announces a deal with Paramount Digital Entertainment that will enable online retailers worldwide to offer Paramount Pictures feature films for secure download in the high-quality DivX(R) video format. DivX digital media technology allows consumers to enjoy DivX content on the PC, the television and mobile devices.

The new agreement covers titles available for digital distribution from both Paramount Pictures' extensive library, as well as new releases. Movies available for download in the DivX format will include action films, hit comedies, some of the most successful franchises in film history and several OSCAR((R)) winners from Paramount Pictures.

"PDE is committed to delivering premium digital content in formats that offer optimal quality, portability and security," said Alex Carloss, Executive Vice President & General Manager, Worldwide Digital Distribution, Paramount Digital Entertainment. "The DivX platform provides distribution partners with a device ecosystem that allows for a seamless consumer experience."

DivX has taken the lead in developing digital media technology that delivers a true cinematic viewing experience in a secure, easily downloadable and portable format. Paramount titles offered in the DivX format will play on DivX Certified(R) devices shipped worldwide, which include TVs, DVD and Blu-ray players, gaming consoles and portable devices.

"We are thrilled to add video content from Paramount Pictures' extensive film library to the growing catalog of major studio content now available in the DivX format," said Kevin Hell, Chief Executive Officer of DivX, Inc. "By supporting all types of content, from premium Hollywood films and independent movies, to Internet and user-generated videos, we continue to fuel the growth of the DivX ecosystem."

Products that bear the DivX Certified logo have undergone a rigorous testing program to ensure a high-quality DivX media experience, including reliable video creation and playback, interoperability with other DivX Certified devices and the visual quality users expect from DivX.

For more information about Paramount Digital Entertainment visit www.paramount.com.

For more information about DivX video, 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 200 million DivX 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 Paramount Pictures Corporation

Paramount Pictures Corporation (PPC), a global producer and distributor of filmed entertainment, is a unit of Viacom (NYSE: VIA, VIA.B), a leading content company with prominent and respected film, television and digital entertainment brands. The company's labels include Paramount Pictures, Paramount Vantage, Paramount Classics, MTV Films and Nickelodeon Movies. PPC operations also include Paramount Digital Entertainment, Paramount Famous Productions, Paramount Home Entertainment, Paramount Pictures International, Paramount Licensing Inc., Paramount Studio Group and Worldwide Television Distribution.

"OSCAR(R)," "OSCARS(R)," "ACADEMY AWARD(R)," "ACADEMY AWARDS(R)," "OSCAR NIGHT(R)," "A.M.P.A.S.(R)" and the "Oscar" design mark are trademarks and service marks of the Academy of Motion Picture Arts and Sciences, and may not be used except in accordance with these regulations or under a special written license from the Academy.

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 the anticipated benefits of the agreement between Paramount Pictures Corporation and DivX, DivX's customers and shareholders, activities expected to occur in connection with the agreement, the expected increase to DivX's market opportunity and potential consumer electronics licensing revenue, and the acceleration of penetration in key emerging product categories. 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: risks that the anticipated benefits of the Paramount Pictures Corporation agreement may not materialize to the extent expected, or at all; risks related to the uncertainty surrounding DivX's success in developing strategic partnerships with online retailers; risks that customer use of DivX technology may not grow as anticipated; risks that anticipated market opportunities may not materialize at expected levels, or at all; risks 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; risks of DivX's dependence on its licensees and partners; risks related to the effect of intellectual property rights claims; 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.

www.divx.com