SAN DIEGO, CA and BELLEVUE, WA, March 20, 2002—DivXNetworks, Inc, the company that created the revolutionary patent-pending DivX ™ MPEG-4 compatible video compression technology, and LockStream Corporation, a leader in Digital Rights Management (DRM) and secure content delivery software, today announced a technology and marketing partnership designed to further the distribution of DVD-quality, protected video content over Internet Protocol (IP) networks.

Under the agreement, LockStream will integrate DivXNetworks MPEG-4 compatible video decoder into LockStream’s Morphing Player application, and the two companies will work together to market the joint solution. The LockStream Morphing Player is a format-independent media player that enables the secure distribution of rich media over IP Networks.

“Through the powerful combination of LockStream’s secure and advanced Morphing Player product with DivXNetworks deep and powerful video technology, this partnership signifies a major step forward in the protected distribution of high-quality video content,” said Jordan Greenhall, Co-Founder and CEO of DivXNetworks, Inc. www.divxnetworks.com. “By adding the speed, performance and brand recognition of the DivX codec to its Morphing player, LockStream will improve the user experience and gain a significant competitive advantage.”

“This partnership allows both companies to take advantage of our respective core competencies and come together in creating a product that will ultimately benefit content providers, digital media resellers and consumers alike,” said Peter Baer, EVP of LockStream Corporation www.lockstream.com. “We are excited to provide our users with the ability to play back high-quality DivX video, and we look forward to working with DivXNetworks.”

Hailed as a “revolutionary product” by Tom’s Hardware Guide, DivX MPEG-4 video compression technology has been downloaded over 50 million times. The newest version of the technology, DivX 5.0, is optimized for the seamless distribution and playback of true DVD-quality video over broadband networks. The new product line also includes DivX Pro 5.0, the first version of DivX video technology built specifically for video professionals. DivX Pro 5.0 can achieve equivalent video quality at file sizes up to 41% smaller than previous versions of the technology, at over twice the encoding speed of competing technologies.
For DivX commercial licensing inquires, e-mail licensing@divxnetworks.com or visit www.divxnetworks.com.

About DivXNetworks
DivXNetworks is a leading technology company that enables the rapid proliferation of video content over Internet Protocol (IP) networks by combining the lightweight, ubiquitous access of the Internet with DVD-quality video performance. The company’s approach is built upon the success of the DivX™ codec, a leading standard for MPEG-4 video distribution with over 50 million users worldwide, and the DivX Open Video System™, a next-generation content delivery system that provides unsurpassed aggregation, promotion, and distribution of video content for mass markets. DivXNetworks is headquartered in San Diego, California, with a satellite office in Los Angeles. For more information about DivXNetworks, visit www.divxnetworks.com.

About LockStream Corporation
LockStream Corporation creates software that secures content delivery across all platforms and wireless devices. Developed by senior technology and media experts, LockStream´s software is the first solution to offer unparalleled security, wireless distribution and brand management capabilities. Industry leaders including AOL Time Warner, Artisan Entertainment, Audax Group, Encore Venture Partners and ING Barings back LockStream. Founded in 1999, LockStream is headquartered in Seattle, with offices in New York, London and Tokyo.

Further information

Contact DivXNetworks
Tom Huntington
Corporate Communications Manager
858-909-5358
thuntington@divxnetworks.com

Contact LockStream Corporation
Jonathan Lynne
Executive Vice President
+1-425-709-6840, ext. 250
jonathanl@lockstream.com