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Divx Direct - June 18, 1999 Edition

The following text is copyright © 1999-2003 Digital Video Express, L.P.


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Divx Direct Newsletter - June 18, 1999
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**Divx Announces Operations Closing**

**Divx Discs To Work Through 2001**

**Maintaining Your Divx Account**

**Refunds Available For DivxSilver Discs**

**Outstanding DivxFlix Orders**

**Get $100 Cash Rebate On Your Divx Player**

**Valuable Information For Circuit City Customers**

**Policy For Other Divx Retailers**


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Divx Announces Operations Closing
==================================

On Wednesday, Digital Video Express announced that it
will cease marketing of the Divx home video system
and discontinue operations. We regret that we have
had to make this decision. The Divx feature has
always been embraced by our customers, and we have
appreciated the opportunity to provide what we
continue to feel was a convenient and affordable
renting option.

Unfortunately, despite strong support from our
customers, Divx has been unable to obtain
sufficient movie studio support to ensure an
adequate and up-to-date selection of movie titles,
or the retail distribution necessary to provide
convenient disc purchase options as originally
envisioned. Without support in these essential
areas, we cannot adequately serve you, our
customer, or create a viable business. Effective
yesterday, June 16th, Divx will no longer register new
customers. Existing, registered customers will be
able to view discs during a two-year phase-out
period.


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Divx Discs To Work Through 2001
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All Divx discs can be viewed on registered players
anytime between now and June 30, 2001. Subsequent
viewings also will be available during that period.
Circuit City has reduced the price of all Divx
discs to $1.99. For that price, consumers will
continue to receive a 48-hour viewing period that
begins when they insert the disc into a registered
Divx-featured player, but all viewing periods must
now be completed by the June 30, 2001, date.


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Maintaining Your Divx Account
==============================

The Divx Customer Satisfaction Center will remain
open through June 30, 2001, to service existing
customers and their accounts. During this time, you
will be able to change any account information,
including name, address, credit card, and phone.
You will also be able to add additional Divx
players to your account.

To contact the Customer Satisfaction Center, call
1-888-456-DIVX.


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Refunds Available For DivxSilver Discs
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Discs can no longer be upgraded to unlimited
viewing, known as DivxSilver. Customers who have
converted discs to DivxSilver can continue viewing
the discs until June 30, 2001, or receive a full
refund of the conversion price if requested prior
to September 30, 1999. All Silver refunds must be
requested by calling the Divx customer service
center at 1-888-639-3489.


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Outstanding DivxFlix Orders
============================

If you have recently placed an order through
DivxFlix, our on-line store, your order has been
processed, and you should receive your order in
less than one week. If your order contained
Advance Sale or Backordered items, we may still be
able to fulfill your order. We will be sending out
e-mails to all customers with outstanding orders
to confirm the status of your order (you should
receive your e-mail by Tuesday, June 22).

If you have any further questions, please call
1-888-456-DIVX.


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Get $100 Cash Rebate On Your Divx Player
=========================================

Divx wishes to ensure that all customers receive a
refund for the added cost of the feature, that the
refund process is smooth and convenient, and that
all customers remain satisfied with their overall
experience. For that reason, Divx has developed the
following pricing, rebate and product return
procedures for Divx customers:

Digital Video Express is providing via mail a $100
cash rebate to all Divx customers who purchased
Divx players prior to June 16, 1999. Your
Divx-featured DVD player is a fully functional DVD
player and will continue to operate as such; the
rebate will compensate for the maximum added retail
price of the Divx feature. Rebate forms are
available in Circuit City stores or at
http://www.divx.com/rebateform.htm.


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Valuable Information For Circuit City Customers
================================================

**$1.99 Divx Disc Closeout Sale**

All Circuit City stores are currently selling
their inventory of Divx discs at the discounted
rate of $1.99. Divx discs will play on all
currently registered Divx players through June 30,
2001.


**Prices Lowered on All Divx/DVD Players**

Circuit City has reduced the price of all
Divx-featured DVD players. The normal 30-day low
price guarantee and the 30-day product return policy
will be extended to 60 days from date of purchase
for all Divx-featured players purchased at Circuit
City prior to June 16, 1999. Customers who have
purchased players within the last 60 days may
choose the $100 rebate, the new lower price, or an
exchange or refund.

Circuit City store associates will be happy to
assist you with the rebate, refund or exchange
process.


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Policy For Other Divx Retailers
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At this time, other Divx retailers have not yet
communicated their refund, return, and exchange
policy for Divx players. If you purchased your Divx
player at a non-Circuit City location, please see
your store for details.


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Thank You
==========

We truly value the support our customers have
shown during the past year, and we are very
disappointed that Divx and Circuit City can no
longer make the Divx feature available. Should you
have any additional questions, please feel free
to contact our consumer affairs specialists at
1-800-251-2665