DIVX Divx, Inc. (MM)

SAN DIEGO, Sept. 3 /PRNewswire/ -- DivX, Inc. (Nasdaq: DIVX), a leading digital media company connecting people and entertainment, and Arcelik A.S. a leading European TV manufacturer, today announced a new partnership to distribute DivX Plus HD Certified digital TVs (DTVs) in Europe. Through the terms of the partnership, Arcelik's new Arcelik, Beko and Grundig-branded DivX Plus HD Certified TVs will be available this fall in 5,000 stores in Turkey and 500 other exclusive stores in 20 countries worldwide. The TVs will power the playback of DivX Plus HD video using the MKV container, enabling consumers to enjoy videos at HD resolutions up to 1080p in the DivX® format using the TV's USB slot.

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Arcelik A.S. is a leading household appliances manufacturer in Turkey. The company engages in the production, marketing and after sales services of consumer durables and consumer electronics. Arcelik A. S. has 11 production plants in Turkey, Romania, Russia and China, sales and marketing organization in 18 countries and 10 brands (Arcelik, Beko, Grundig, Altus, Blomberg, Elektra Bregenz, Arctic, Leisure, Flavel and Arstil). The Company provides products and services to its consumers in more than 100 countries.  The line up of Arcelik, Beko and Grundig-branded HD TVs with DivX Plus HD certification all include high end technology with brilliant colour reproduction, maximum picture sharpness and a high contrast factor.

DivX Plus HD Certification is the premium level of certification available from DivX, optimized for consumer electronics products and supports the playback of all content created with DivX software. Available on www.divx.com, DivX Plus Software allows users to create and playback H.264 video in an .mkv file container. DivX Plus HD Certified devices will playback all previous versions of DivX video and DivX Plus HD video files with the .mkv file extension and AAC audio created with third-party tools.

Known for great performance, visual quality and interoperability on any DivX Certified® device, DivX provides consumers with a comprehensive digital media solution supporting the majority of high-quality Internet video on their TVs or other consumer electronics devices. In addition, DivX also supports the secure playback of major Hollywood titles from major studios, and many online movie download sites now distribute Hollywood content in the DivX format worldwide.

"DivX has seen great momentum as we expand DivX Plus HD technology worldwide with leading consumer electronics partners such as Arcelik A.S.," said Malachi Bierstein, Director and General Manager, EMEA at DivX. "We are especially pleased to announce that Arcelik A.S's new line of TVs are expected to be the first in Europe to include DivX Plus HD playback in more than 5,500 retail stores around the world."

"As the first to offer DivX Plus HD in digital TVs in Europe, we are excited to bring DivX's revolutionary new MKV HD video playback technology to our award-winning TVs," said Christian Struck, Director of Brand Management, Grundig Intermedia GmbH. "The DivX brand is very well known throughout Europe, and adding DivX Plus HD Certification will help us enhance our home theater experience for our customers."

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

For more information about Arcelik A.S., visit www.arcelikas.com.

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 Arcelik A.S.

Founded in 1955, Arcelik A.S. offers goods and services in more than 100 countries, with 11 production facilities in Turkey, Russia, Romania and China, sales and marketing affiliates operating internationally, and ten brands.  Arcelik A.S. enhanced its market share significantly by entering new distribution channels in the company's core export markets in Western Europe and particularly in the U.K. and Romania.  Arcelik strengthened its position as the second in the market by increasing the company's share from 9 percent to 15 percent in the six main categories of white goods (MDA) in the U.K. and has retained its position by far as the leader in Romania by increasing the company's market share to 35 percent.  On a brand basis, Beko remained in the top ten best selling white goods brands in the world in eight main product categories in 2009, doubling the company's success over 2008.

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.