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Panasonic DVD-K325-PLA DivX Certified DVD Video Player Announced

Panasonic Latin America Introduces New DivX Certified DVD Video Player

Panasonic and DivX, Inc. (NASDAQ:DIVX) announced today that Panasonic will introduce a new line of DivX Certified DVD video players in Latin America. The DivX Certified Panasonic DVD-K325-PLA model will be available throughout Latin American retail stores in October.

“Our DivX Certified DVD player is versatile and full-featured, giving consumers everything they want in one device, including Karaoke, PAL to NTSC conversion and full playback of all versions of the DivX video format,” said Carlos Bethancourt, Marketing Executive for Panasonic Latin America. “This allows consumers to enjoy high-quality DivX video from within the comfort of their homes.”

“By incorporating DivX technology in their DVD players, Panasonic is offering consumers a high performance product that provides a truly open and interoperable experience,” said Jim Geison, Vice President of Worldwide Sales, DivX. “Panasonic’s devices empower consumers to enjoy high-quality DivX video, wherever they might be, easily taking the video from the PC to the living room.”

DivX and Panasonic have been partners since February 2005 and are actively engaged in all major regions of the world. DivX is primarily integrated into Panasonic’s DVD products from the Panasonic AVC Networks division, including DVD players, recorders (DIGA brand), home theater systems, and in-car DVD receivers.

Products that bear the DivX Certified logo have undergone a rigorous testing program to ensure interoperability, security and visual quality. DivX Certified products enable consumers to create, play and share high-quality video content across a range of devices and platforms. Over 46 million DivX Certified devices from a variety of manufacturers have shipped worldwide. For more information on DivX Certification, visit http://www.divx.com/certification.

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About DivX, Inc.
DivX creates products and services designed to improve the experience of media. Our first product offering was a video compression-decompression software library, or codec, which has been actively sought out and downloaded over 180 million times in the last four years, including over 50 million times during the last twelve months. We have since built on the success of our codec with other consumer software, including the DivX Player application. We distribute this software from our website, DivX.com, which averaged over five million unique visitors per month during the second quarter of 2006. We also license our technologies to consumer hardware device manufacturers and certify their products to ensure the interoperable support of DivX-encoded content. Over 46 million DivX Certified hardware devices have been shipped worldwide, including over 10 million devices reported to us by our customers during the second quarter of 2006. In addition to technology licensing to consumer hardware device manufacturers, we currently generate revenue from software licensing, advertising and content distribution. For more information, visit http://www.divx.com.

About Panasonic
Best known by its Panasonic brand name, Matsushita Electric Industrial Co., Ltd. is a worldwide leader in the development and manufacture of electronic products for a wide range of consumer, business, and industrial needs. Based in Osaka, Japan, the company recorded consolidated net sales of US$76.02 billion for the year ended March 31, 2006. Panasonic is ranked 3rd on the Fortune 500 Electronics & Electrical Equipment Index.

With headquarters in the Republic of Panama and offices in Colombia, City of the East (Paraguay), Ecuador and Miami (United States), Panasonic Latin America, S.A., was founded on 1970. For more information on the company and its products, visit the company’s website at http://www.panasonic.com.pa.

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