LG Electronics and DivX to Expand Strategic Alliance, Enable Future of Entertainment

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DivX TVTM Platform to Stream the Best of Online Media

Directly to Future LG ‘NetCast' Blu-ray Disc Players and Home Theater Systems

DivX, Inc. (Nasdaq: DIVX), a leading digital media company, and LG Electronics, a global leader and technology innovator in consumer electronics, today announced plans for a strategic alliance to include the newly-launched DivX TVTM Internet television platform in LG's next-generation network Blu-ray Disc players and home theater systems with NetCast Entertainment Access.

DivX TV is a technology platform that can be embedded or implemented through a firmware update on any connected consumer electronics device at the chip level to deliver a wide variety of Internet media content and services without the need for a PC. Through the DivX TV interface, consumers can access premium Hollywood movies, Web videos, digital music services, popular social networking sites and more. The DivX TV platform also enables users to stream their own personal digital media content over a home network and offers full playback of a variety of video formats, including all DivX® videos.

The alliance contemplates that the new DivX TV technology will be implemented on LG's Blu-ray players and home theater systems with NetCast Entertainment Access that enable consumers to stream content directly to their living rooms. The first DivX TV firmware update for LG NetCast Blu-ray Disc players and home theater systems is expected to be available later this year.

The DivX TV content lineup currently includes more than 70 channels from a variety of genres, including free Internet content as well as premium, full-length films and television shows. Content providers include Associated Press, CNET, Dailymotion, Picasa, Revision 3, Rhapsody, TED, Twitter and many more, with a number of additional content partners expected to sign on.

"The DivX logo has become synonymous with the ability to playback high-quality Internet video on devices, and the addition of DivX TV technology to our product line enhances the value of our NetCast feature in our Blu-ray products for consumers," said Dr. Woo Paik, President and Chief Technology Officer, LG Electronics, Inc. "DivX TV offers consumers a scalable, easy-to-use and high-performance solution that brings great Internet content and services directly in their home."

"We are excited that LG has chosen to pioneer the roll-out of DivX TV on NetCast Blu-ray players and help usher in a new era of digital entertainment," said Kevin Hell, Chief Executive Officer, DivX, Inc. "Now, consumers can experience a wide variety of Internet media and content by simply changing channels on a remote control. LG Electronics has long been an early adopter of DivX technology across multiple categories, and our new alliance allows LG to adopt DivX TV for additional categories including HDTVs."

LG has shipped a diverse lineup of DivX Certified® consumer electronics products over the last five years that playback DivX video on physical media, including DVD players, Blu-ray Disc players, HDTVs, mobile phones and other devices.

DivX will be unveiling the DivX TV platform at a private press event at the International Consumer Electronics Show (CES) at the Moon nightclub at the Palms on January 7, and demos of the platform will be publicly shown at the LG CES booth (Booth #8205) as well as the DivX meeting rooms in the South Hall of the convention center. For more information about LG products, visit www.lgusa.com. To learn more about the DivX TV platform, visit www.divx.com/divxtv.

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 250 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 LG Electronics, Inc.

LG Electronics, Inc. (KSE: 066570.KS) is a global leader and technology innovator in consumer electronics, mobile communications and home appliances, employing more than 84,000 people working in 115 operations including 84 subsidiaries around the world. With 2008 global sales of $44.7 billion, LG comprises of five business units - Home Entertainment, Mobile Communications, Home Appliance, Air Conditioning and Business Solutions. LG is one of the world's leading producers of flat panel TVs, audio and video products, mobile handsets, air conditioners and washing machines. LG has signed a long-term agreement to become both A Global Partner of Formula 1TM and A Technology Partner of Formula 1TM. As part of this top-level association, LG acquires exclusive designations and marketing rights as the official consumer electronics, mobile phone and data processor of this global sporting event. For more information, please visit www.lge.com.

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, any anticipated benefits from the agreement between LG Electronics and DivX, Inc., the growth and earnings potential of the DivX business, and the Company's position in the digital media space. 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 from the agreement between LG Electronics and DivX, Inc. may not be realized, 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; DivX's ability to penetrate existing and new markets; the effects of competition; DivX's dependence on its licensees and partners; the effect of intellectual property rights claims; and other factors discussed in the "Risk Factors' section of DivX's most recent reports filed with the SEC. 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, other than as required under applicable securities