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DivX Closes $17 Million Round of Funding From Insight Venture Partners

Posted on: Wednesday, 26 October 2005, 09:00 CDT

DivX, Inc., the digital entertainment company that created the popular DivX media format, today announced a $17 million investment from Insight Venture Partners, a leading venture capital firm focused on the global software and Internet services industry. The company also announced that Jerry Murdock, Managing Director of Insight Venture Partners, has joined the DivX Board of Directors.

DivX, Inc. has experienced significant growth across multiple business lines in 2005, and plans to expand global sales and business operations into emerging markets in the coming year. The company distributes DivX media technology to users around the world, and licenses the technology to content providers, consumer electronics manufacturers, and software companies. DivX drives an entire ecosystem of interoperable platforms and devices with vast amounts of DivX video content, millions of users and millions of DivX Certified products from major consumer electronics manufacturers.

"We're pleased to welcome Insight Venture Partners on board as our sole investor for this important funding round and we are excited about the expertise that Jerry Murdock brings to our board," said Jordan Greenhall, CEO and Founder of DivX, Inc. "With DivX Certified devices from major manufacturers easily and affordably available all over the world and mass proliferation of DivX software and content, the global DivX phenomenon is expanding at a rapid pace. By partnering with Insight we can continue to fuel this momentum and bring our consumers and partners a complete experience that spans the creation, playback and distribution of digital media."

Jerry Murdock is a co-founder of Insight Venture Partners. Since Insight's inception in 1995, he has played a leading role in defining the company's investment strategy. Mr. Murdock joins existing DivX Board members Frank Creer, Paul Chau, Fred Gerson and Mr. Greenhall.

"The DivX brand means exceptional playback of digital media to a global community of content acquirers. The community wants the freedom to purchase movies and TV shows and then enjoy them on TVs, PCs or mobile phones," said Mr. Murdock. "In this regard, DivX and their ecosystem of partners are leading the digital content revolution by providing new channels of distribution and use for both consumers and content creators. Insight's goal with this investment is to assist the company to extend its reach to the next generation of consumers who want to purchase, download and play digital media anytime anywhere."

To learn more about DivX, Inc. visit www.divx.com/corporate. For more information on Insight Venture Partners, see www.insightpartners.com.

About DivX, Inc.

DivX, Inc. is a digital entertainment technology company positioned at the center of multimedia convergence. The company's core offering is the DivX(R) video codec, among the world's most popular video compression technologies with millions of users worldwide. 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 and 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. DivX, Inc. is headquartered in San Diego, California

About Insight Venture Partners

With over $1.5 billion under management, Insight Venture Partners invests in entrepreneurial companies that develop technology-based solutions for businesses and consumers. Headquartered in New York, Insight Venture Partners has taken a global approach to investing in a market where experience, value-add consulting and the ability to execute are the foundations of success. For additional information, visit the Firm's web site at www.insightpartners.com.

Source: Business Wire

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