Press

Silicon Image Showcases HDMI Products from JVC, Meridian, Panasonic and Samsung

PanelLink Cinema Featured in HDMI Prototypes on Display at CESs

Las Vegas, Nevada / January 9, 2003 — Silicon Image (Nasdaq: SIMG), a leader in high-bandwidth semiconductor and system solutions for mass markets, is showcasing its new line of PanelLink Cinema™ HDMI silicon in the industry's first HDMI-enabled prototypes at CES. Silicon Image, along with consumer electronics manufacturers JVC, Meridian, Panasonic and Samsung, is demonstrating the ease and simplicity of the new High-Definition Multimedia Interface (HDMI) that will bring uncompressed digital high-definition video and multi-channel audio to consumer households via a single cable.

Developed by Hitachi, Matsushita Electric (Panasonic), Royal Philips Electronics, Silicon Image, Sony Corporation, Thomson (RCA) and Toshiba Corporation, HDMI is a digital interface specification for consumer electronics products that delivers pristine digital quality with bandwidth of up to 5 Gigabits/second. Based on Silicon Image's TMDS™ technology, HDMI is fully backward compatible with the Digital Visual Interface (DVI) standard for the PC and consumer electronics markets, which is also based on Silicon Image's technology. In the consumer electronics market, DVI with High-bandwidth Digital Content Protection (HDCP) has been widely implemented in DTVs and set-top boxes as a solution for secure video. HDCP protects content transmitted over both DVI and HDMI connections and is applauded by most major motion picture providers.

The HDMI 1.0 specification, announced last month, revealed the design elements required for all future HDMI products. Prototypes of the first of these products, all of which include PanelLink Cinema technology, include:

Panasonic digital projection TVs
Samsung DirecTV set-top box and 63" plasma display
JVC 48" digital rear-projection TV
Meridian high-end DVD player derived from the 800 Series

"The showcase of HDMI prototypes at CES indicates a real desire by CE manufacturers to deliver high-quality content to consumers," said Ben Bajaran of Creative Strategies. "In addition, the support from Hollywood studios to deliver high-value content through HDMI should drive consumer support once these products become available later in the year."

"We are pleased that several of our partners are demonstrating HDMI solutions with Silicon Image's PanelLink Cinema chips only one month after the release of the HDMI specification," stated Parviz Khodi, Silicon Image's vice president of marketing. "Silicon Image has extensive design and technical support expertise in HDMI and HDCP. This, combined with our familiarity with the architectural challenges of secure digital interfaces and thorough understanding of customer requirements, has enabled us to assist our customers in developing HDMI products that are both compliant and interoperable in a timely fashion."

HDMI Enables CE Companies to Enhance Product Offerings
"HDMI is the future for HDTV, and Panasonic is leading the way towards that future by unveiling early HDMI prototype systems," said David Naranjo, senior manager, product planning and marketing for Matsushita Television and Network Systems of America. "Silicon Image and their PanelLink Cinema solutions are playing an instrumental role in bringing the benefits of an all-digital HDTV experience to consumers."

"Having recognized the increased demand of high-definition content from educated digital video consumers, JVC was an early supporter of DVI-HDCP incorporating it in our high-definition television line. Having the ability to incorporate HDMI-HDCP in our future digital products as well will make it that much easier for the end user to enjoy the high-definition experience," stated Michael Holmes, vice president of sales and marketing, JVC Color Television Division.

"Today there are a growing number of DTVs and set-top boxes on the market that feature DVI connections, including numerous Samsung products," said Jim Sanduski, vice president of marketing for Samsung Electronics America. "By adopting HDMI, we are continuing to expand upon DVI's capabilities by adding attractive new features designed specifically for consumer electronics applications and will help educate consumers to the benefits through our DigitAll advertising campaign. We are proud to display our new HDMI-enabled set-top box and plasma display in conjunction with Silicon Image at CES."

"For years Meridian has provided the highest quality audio and video experience to consumers," said Robert Stuart, chairman of Meridian Audio. "With HDMI and Silicon Image's PanelLink Cinema chips, we can now provide end-to-end digital audio and video to our customers."

HDMI and Hollywood - Working Together
HDMI has the support of major motion picture providers including Fox and Warner Brothers, who look forward to releasing their premium HD content via interface technology incorporating HDCP, such as PanelLink Cinema.

Further driving the commitment between Hollywood and HDMI, Silicon Image Chief Operating Officer Steve Tirado will participate in a Digital Hollywood at CES conference session tomorrow, January 10th. The session, titled "Networking the Digital Home and the Residential Gateway," will take place at 1:30 PM on the second floor of the North Hall. Other panelists include representatives from Mitsubishi, Philips Semiconductors, Maxtor Corporation, Texas Instruments and Sun Microsystems.

Cable Industry Support
In an agreement last month, 14 consumer electronics companies and seven major cable companies representing more than 75 percent of all cable subscribers agreed to support FCC labeling regulations that specify DVI/HDCP and HDMI/HDCP interfaces with copy protection controls in future cable-ready HDTV products.

Cable and satellite system operators including DirecTV, Echostar (Dish Network) and CableLabs are supporters of the HDMI specification.

About Silicon Image
Headquartered in Sunnyvale, Calif., Silicon Image, Inc. designs, develops and markets multi-gigabit semiconductor and system solutions for a variety of communications applications demanding high-bandwidth capability. With its proprietary Multi-layer Serial Link (MSL™) architecture, Silicon Image is well positioned for leadership in multiple mass markets including PCs, consumer electronics, storage and networking. Currently, Silicon Image leads the global PC/display arena with its innovative digital interconnect technology, and is now emerging as a leading player in the storage industry-offering robust, high-bandwidth semiconductors and systems. For more information on Silicon Image, visit www.siliconimage.com.

This news release contains forward-looking information within the meaning of federal securities laws and regulations. These forward-looking statements include statements related to the anticipated introduction of prototype digital set-top boxes, digital VHS players and HDTVs incorporating Silicon Image's HDMI technology, the expectation of adoption of HDMI by manufacturers of such consumer electronics devices, and anticipated consumer reaction to the new devices and technology. These forward-looking statements involve risks and uncertainties, including those described from time to time in the filings made Silicon Image with the Securities and Exchange Commission (SEC), that could cause the actual results to differ materially from those anticipated by these forward-looking statements. The prototypes may not be developed into products, and any products may not contain HDMI, or Silicon Image chips, and may not generate revenues, margin or profits. The consumer electronics marketplace may not adopt HDMI or may not procure HDMI chips from Silicon Image or elsewhere, and consumers may not react favorably to the new devices and technology. Among the important factors to consider are the economic, market, competitive, technological and operational factors affecting Silicon Image's business. Please see the most recent quarterly report on Form 10-Q and annual report on Form 10-K filed by Silicon Image with the SEC. Silicon Image does not assume any obligation to update this forward-looking information.

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Silicon Image, SiI, PanelLink, PanelLink Cinema, TMDS and MSL are trademarks or registered trademarks of Silicon Image, Inc. in the United States and other countries. HDMI is a trademark or registered trademark of HDMI Licensing LLC in the United States and other countries.

Media Contacts:
Sheryl M. Gulizia
Manager, Public Relations
Silicon Image, Inc.
Phone: (408) 616-1553
Email: sgulizia@siliconimage.com

Cheryl Delgreco
Media Strategies
Phone: (617) 723-4004
Email: delgreco@shore.net