Pinnacle Systems Licenses Leading DivX Technology for Video Software a

Pinnacle Systems Licenses Leading DivX Technology for Video Software and Hardware Line

    Business Editors/High-Tech Writers

    SAN DIEGO--(BUSINESS WIRE)--March 11, 2005--

Pinnacle Studio Users Can Create High-Quality DivX Videos for Playback on DVD Players and Portable Devices
    DivXNetworks, Inc., the company that created the revolutionary DivX video technology, today announced that Pinnacle Systems (Nasdaq:PCLE), a leader in digital video solutions, has licensed DivX video technology for their leading line of video software and hardware products. The two companies will work together to market DivX Licensed Pinnacle products to consumers through a variety of outlets, including the popular DivX.com website (www.divx.com).
    The first Pinnacle product to incorporate DivX video technology, Pinnacle Studio version 9 is an easy-to-use software video editor that enables users to capture, edit and add titles, music, narration and special effects to home movies, which can then be outputted to videotape, DVD and the Internet. DivX is among the world's most popular video technologies, with over 160 million global users.
    The addition of the popular and powerful DivX video technology will enable Pinnacle users to create high-quality, highly-compressed DivX video files that can be played back on a wide range of DivX Certified consumer electronics devices from major manufacturers, including Philips, Sony, Toshiba, Pioneer and more. Over 20 million DivX Certified DVD Players were shipped globally in 2004.
    "Pinnacle creates great products that make video editing simple and enjoyable for consumers," said Kevin Hell, Chief Operating Officer at DivXNetworks, Inc. (www.divxnetworks.com). "With the addition of DivX technology, Pinnacle users will now be able to create high-quality video files that they can then easily view in the living room or on the road using any DivX Certified DVD player or portable device."
    DivX is a great video technology with widespread global support that offers interoperability across devices and platforms, and we believe the addition of DivX to our product line will add real value to our user base," said Tanguy Leborgne, Director of Consumer Product Marketing for Pinnacle Systems.
    To learn more about licensing DivX software, visit http://www.divxnetworks.com/solutions/licensing.php. For more information on Pinnacle Systems, visit www.pinnaclesys.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(R) video codec, among the world's most popular video compression technologies, with over 160 million users worldwide. 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, Calif.

    About Pinnacle Systems, Inc.

    Pinnacle Systems provides broadcasters and consumers with cutting-edge digital media creation, storage and play-back solutions for use at Home, in the Studio and on the Air. Pinnacle Systems' award winning digital media solutions are in use around the world for broadcast, video and audio editing, DVD and CDR authoring and on the Internet. A recognized industry leader, the Company has received nine prestigious Emmy Awards for its technical innovations and carries this commitment throughout all of its product lines. Pinnacle Systems may be reached at 650-526-1600 or at www.pinnaclesys.com.

    Pinnacle Systems and Pinnacle Studio are trademarks or registered trademarks of Pinnacle Systems, Inc. and its subsidiaries in the United States and other countries. DivX is a trademark of DivXNetworks. All other trademarks are the property of their respective owners.

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CONTACT: DivXNetworks Tom Huntington, 858-882-0672 thuntington@divxnetworks.com www.divxnetworks.com

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: HARDWARE COMPUTERS/ELECTRONICS SOFTWARE PRODUCT MARKETING AGREEMENTS SOURCE: DivXNetworks, Inc.

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