ArcSoft licenses DivX technology for video software solutions

DivXNetworks, Inc., the company that created the patent-pending DivX® video
compression technology, and ArcSoft, Inc., the leading provider of digital
imaging software for consumer devices, today announced a technology licensing
and marketing partnership. Under the agreement, ArcSoft will bundle the popular
DivX video codec with its leading line of video software solutions, beginning
with an OEM version of its video editing software.

ArcSoft will initially include the Windows and Mac versions of DivX with an
OEM version of ArcSoft® VideoImpression™, a novice level video editing and
slideshow creation software. ArcSoft's VideoImpression software is bundled with
digital cameras and camcorders from leading manufacturers, enabling end-users to
easily create and edit home videos on their PCs. The superior compression and
visual quality of DivX will let ArcSoft users create high-quality CDs of home
videos and easily distribute their videos over the Internet.

DivX, the popular video compression technology with over 100 million
worldwide users, provides DVD-quality digital video at sizes 7-10 times smaller
than MPEG-2. As part of the partnership, the two companies will work together to
market DivX Licensed™ ArcSoft products to the international community of DivX
users.

'DivX technology offers incredible visual quality and compression," said Todd
Rumaner, senior vice president of ArcSoft, Inc. 'By bundling DivX with our
popular VideoImpression software, we are offering our users an easy way to
create and distribute high-quality videos."

'ArcSoft is a leader in the video space and we're excited to work together to
bring the power of DivX video to the ArcSoft product line," said Kevin Hell,
chief marketing officer and managing director at DivXNetworks. 'With their
innovative product solutions, ArcSoft has shown proven strength in providing the
ideal OEM software for the imaging market. The decision to license DivX software
further validates ArcSoft's ability to understand and provide the imaging
features and functionality that consumers and hardware manufacturers need."

For more information on licensing DivX software, write to
licensing@divxnetworks.com. To learn more about ArcSoft, visit
www.arcsoft.com.

About ArcSoft
ArcSoft, Inc. develops, markets and distributes
innovative digital imaging and video solutions to companies and end-users around
the globe. ArcSoft specializes in custom-built software for consumer electronic
device manufacturers and infrastructure solutions for telecommunications
companies. Established in 1994, ArcSoft is a privately held company
headquartered in Fremont, California, with regional commercial and development
facilities in Europe and the Far East. For further details, please visit us at
our corporate Web site: www.arcsoft.com.

About DivXNetworks

DivXNetworks is a consumer-focused video
technology company positioned at the center of multimedia convergence. The
company's core offering is the DivX ® video codec, the popular video compression
technology with over 100 million users worldwide. Often called 'the MP3 of
video," 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 or 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. DivXNetworks is headquartered in San
Diego, California, with satellite offices in Los Angeles and San Jose, CA,
Taipei, Taiwan, and Dortmund, Germany. For more information, visit
http://www.divxnetworks.com.


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Source: ArcSoft.com

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