For DivXNetworks: Tom Huntington Corporate Communications Manager 858…

For DivXNetworks:
Tom Huntington
Corporate Communications Manager
858-909-5358
thuntington@divxnetworks.com

    Hauppauge Licenses DivX Video Technology for WinTV
       Products and MediaMVP Digital Media Receiver

 Integration of DivX® Video Encoding and Decoding Will Allow Hauppauge Users
               to Record and View TV Shows in DivX on PC and TV

March 18, 2004--Hannover, Germany--DivXNetworks, Inc., the company that
created the patent-pending DivX® video compression technology, and Hauppauge
Computer Works (NASDAQ: HAUP), a leading manufacturer of digital media products,
today announced a technology licensing and development agreement to include DivX
video technology in Hauppauge's leading line of WinTV receivers and recorders as well
as the Hauppauge MediaMVP Digital Media Receiver. Hauppauge products are on
display at the CeBIT technology fair in Hannover, Germany at Hall 23, Booth 51.

The addition of DivX technology to the Hauppauge product line will allow users to
record television content in high-quality DivX on their PC and then easily transfer that
content to a home theatre. The WinTV line of products enables PC users to watch and
record television content, and Hauppauge consumers can now record their favorite TV
shows using the high-quality DivX codec. Often called the "MP3 of video," DivX is
among the world's most popular video technologies with over 120 million global users.
The superior compression and visual quality of DivX video enables users to store and
distribute DVD-quality videos at 1/10th the size of MPEG-2, the DVD standard.

Hauppauge will also offer DivX support for the innovative MediaMVP digital media
receiver. MediaMVP is a device that connects to a television and receives digital media
(music, videos and pictures) from a PC over a home network. The addition of DivX
support will allow users to play DivX movies stored on a PC hard drive directly on a
television. The MediaMVP also supports the conversion of PAL video to NTSC format,
and vice versa, enabling DivX users to convert content recorded into one format for
playback in another. To support Hauppauge's end to end solution for home media
delivery, DivX content recorded on the PC will initially be transcoded into MPEG for
playback on the MediaMVP. Hauppauge will work with DivXNetworks to obtain official
DivX Certification for the MediaMVP in the near future, enabling users to directly
decode all versions of DivX video on the device.

"DivX is an immensely popular and powerful video compression technology with a
significant global brand, and we're excited to add DivX support to our WinTV and
MediaMVP products," said Ken Plotkin, CEO of Hauppauge Computer Works. "Users
can now record all their favorite TV shows in DivX on their PCs using WinTV and then
easily playback that content on their TV sets with the MediaMVP."

"Hauppauge has a clear and compelling vision of the networked multimedia home, and
their products are leading the way to a high-quality, affordable connected consumer
experience," said Kevin Hell, chief marketing officer and managing director at
DivXNetworks, Inc. "The DivX brand fits perfectly with the Hauppauge product line,
and we are excited to enable our users to easily move their DivX videos beyond the PC.
We look forward to working with Hauppauge to obtain full DivX Certification for the
MediaMVP product in the future."

For more information on DivXNetworks, visit www.divxnetworks.com. To see a
demonstration of DivX-powered Hauppauge products in action, visit the Hauppauge
booth at CeBIT at Hall 23, Booth 51.

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,
among the world's most popular video compression technologies with over 120 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, Guildford, England and Dortmund, Germany.
For more information, visit http://www.divxnetworks.com. DivX is a registered
trademark of DivXNetworks, Inc.

About Hauppauge Digital, Inc.

Hauppauge Digital, Inc. (NASDAQ: HAUP) is a leading developer of digital video TV
and data broadcast receiver products for personal computers. Through its Hauppauge
Computer Works, Inc. and Hauppauge Digital Europe subsidiaries, the Company designs
and develops analog and digital TV receivers that allow PC users to watch television on
their PC screen in a resizable window and enable the recording of TV shows to a hard
disk, digital video editing, video conferencing, receiving of digital TV transmissions, and
the display of digital media stored on a computer to a TV set via a home network. The
Company is headquartered in Hauppauge, New York, with administrative offices in New
York, Singapore, Ireland and Luxembourg and sales offices in Germany, London, Paris,
The Netherlands, Sweden, Italy, Spain, Singapore and California. The Company's
Internet web site can be found at http://www.hauppauge.com .