DivX and Sonic Solutions Announce Strategic Partnership to Enable Digital Video Distribution

End-to-end Platform to Deliver Premium Entertainment to Millions of DivX® CE Devices

NOVATO, Calif. and SAN DIEGO — Sonic Solutions® (Nasdaq: SNIC) and DivX, Inc. (Nasdaq: DIVX), a leading digital media company, today announced a partnership to enable the digital distribution of a broad catalogue of high-quality, premium movie titles compatible with DivX Certified® consumer electronics devices from all major CE brands. In the initial stage of the partnership, Sonic Solutions will make movies available for download in the DivX® format, launching tomorrow via www.divx.cinemanow.com.

Sonic’s Roxio CinemaNow™ powers digital entertainment retail stores for Best Buy and Blockbuster sites, among others, and has established a leadership position in the delivery and management of premium digital video content. DivX has worked with an array of global partners to create a vast ecosystem of consumer electronics devices from major OEMs that playback secure, premium content in the DivX format. Together, the two companies can enable retailers to offer a full solution for the end-to-end distribution of high-quality digital video content that consumers can enjoy beyond the PC through virtually any kind of consumer electronics product, from DVD players to Blu-ray devices, gaming consoles, digital televisions and mobile phones.

“DivX has created an unparalleled ecosystem of devices, with technology integration at the chip level, and full device certification to ensure secure, high-quality playback. We’ve also secured format approval covering an extensive catalogue of premium content from select major studios that are compatible with those devices. Roxio CinemaNow has built a robust digital distribution business and an online storefront that lets retailers like Blockbuster and Best Buy launch consumer offerings. Together, we offer an end-to-end supply chain for the delivery of premium digital video that we believe will pave the way for the future of digital distribution,” said Kevin Hell, Chief Executive Officer of DivX, Inc.

DivX technology is incorporated in more than 200 million DivX devices that have shipped into the market from major consumer electronics manufacturers, including DVD players, digital TVs, gaming consoles, Blu-ray disc players, and portable DVD players. Consumers are free to transfer their DivX movies via DVDs, USB drives, SD memory cards, and portable hard drives, or stream content over a home network for playback on their registered DivX Certified devices.

“DivX has long been the leader in the development and deployment of exceptional digital video technology for consumers,” said Dave Habiger, president and CEO, Sonic Solutions. “With millions of DivX enabled devices shipped into the market and strong consumer interest in the format, we look forward to working with DivX to enhance our Roxio CinemaNow entertainment platform and the digital home entertainment experience for consumers.”

The Roxio CinemaNow entertainment platform serves a broad range of premium content to a growing, multi-manufacturer ecosystem of home and mobile electronics including PCs, connected TVs, set-top DVRs, Blu-ray Disc players, smart phones, and mobile media devices. The platform enables retailers and consumer electronics companies to participate in the entertainment supply chain, add value to product offerings and form ongoing relationships with customers.