Copyright © DivXNetworks, Inc. All Rights Reserved. DivX is a registered trademark of DivXNetworks, Inc. SLIDE 2 © DivXNetworks, Inc. 19 September DivXNetworks Confidential. The DRM Component in DivX Certification December 3, 2003 For: CPTWG By: Eric Grab, DivXNetworks

DIVXNETWORKS INTRO/UPDATE DivXNetworks is a technology company. –Video Compression up to High Definition (1080). –Video Security (DRM). –Internet Video on Demand (VOD) System. –DivX Certification Program. DivXNetworks earns revenue from several business units. –Software Licensing – Consumer and Commercial. –Hardware Licensing – IC/ODM/OEM, DVD, Portable, DVC/DSC, STB –Video Solutions Group – DivX VOD Service, DivX VOD Platform, Professional Services DivXNetworks has several highlights. –100+ million downloads of DivX codec and player bundle from DivX.com. –61 commercial consumer electronics licensees. –2+ years running Internet VOD service (launched Aug 2001). 26 content partners. –65 employees, cash flow positive and profitable in Q4 of DivXNetworks named one of the World’s Top 100 Private Technology Companies

DIVX CERTIFIED TECHNOLOGY IN HARDWARE DivX Certification Program –Over 1 million devices in –Over 30 million devices in –Includes codec, disconnected DRM, and DivX logo. Licensed Partners –ALi, AM Logic, Cheertek, Cirrus, ESS, Equator, LSI Matsushita, Mediatek, Philips/Trimedia, Sigma Designs, SunPlus, STMicro, TI, Via, Zoran and more. OEM’s releasing product –Top brands such as Fujitsu-Siemens, Philips, Polaroid, Samsung, Thomson/RCA etc. –Nearly 100 niche OEM’s. Matsushita Electric Industrial Co., Ltd. “…DivX will lead the industry to MPEG-4 playback on DVD players… By the conclusion of 2003, the top 5 DVD manufacturers (Sony, Apex, Panasonic, Toshiba and Samsung) will each offer at least one player with MPEG-4 …” - The Yankee Group (Sept. ‘02) “…DivX will lead the industry to MPEG-4 playback on DVD players… By the conclusion of 2003, the top 5 DVD manufacturers (Sony, Apex, Panasonic, Toshiba and Samsung) will each offer at least one player with MPEG-4 …” - The Yankee Group (Sept. ‘02)

DIVX DRM VIDEO TO CONSUMERS VOD Service Personal Computer Buy Rent Disc (CD or DVD) or Home Network TV and DivX Certified Player Future Direct Connect

DIVX DRM INFORMATION Consumer –Consumer does one time registration of player. Gets 8 character code from player and puts in web site. Consumer can sell player and another consumer can register it. –Rentals expire by number of views. –Consumer can only play video on players they register, including future players they may buy. Protection and Implementation –128 bit AES used to encrypt video in 128 byte chunks per frame. –48 bytes of secure persistent memory used in player to store DRM information. Includes user id and 128 bit user key stored in product. –No date/time clock required. –No unique device id required. –4 user interface screens to implement on product.