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DivX, Inc. Securities Litigation

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DivX, Inc. (NasdaqCS: DIVX) shareholder litigation in connection with alleged
unfair takeover offer

On June 2, 2010, DivX, Inc. (“DivX” or the “Company”) announced that it had agreed to
sell the Company to Sonic Solutions (NasdaqGS: SNIC). Under the terms of the
transaction, DivX shareholders will receive $3.75 in cash and 0.514 shares of Sonic
Solutions stock for each DivX share of common stock they own. Based on the prior
closing price of Sonic Solutions stock, the transaction values DivX shares at
approximately $9.83 per share for a total transaction value of approximately $323
million.

For the quarter ending March 31, 2010, DivX reported total revenue of $23.255 million
and net income of $1.256 million as compared to total revenue and a net loss of
$20.060 million and $34 thousand, respectively, for the prior quarter. The investigation
concerns whether the DivX Board of Directors breached their fiduciary duties to DivX
stockholders by failing to adequately shop the Company before entering into this
transaction and whether Sonic Solutions is underpaying for DivX shares, thus
unlawfully harming DivX stockholders. In particular, at least one analyst set a price
target for DivX stock at $10.50 per share.

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