Silicon Image broadens market adoption of DVI, HDMI, and SATA technologies through IP licensing program

SUNNYVALE, Calif., September 30, 2003 — Silicon Image, (Nasdaq: SIMG), a leader in high-bandwidth semiconductor and system solutions for mass markets, today announced the availability of its comprehensive intellectual property (IP) licensing program comprising core integrated circuit (IC) designs based on the Serial ATA (SATA), High-Definition Multimedia Interface™ (HDMI™) and Digital Visual Interface (DVI) industry standards. Silicon Image also announced that ATI Technologies has licensed its SATALink™ core, joining the growing list of companies licensing Silicon Image's high-speed, serial communications IP.

Silicon Image has cemented a leadership position in its served markets and established a track record of being first to market with cost-effective, high-speed, serial communications products conforming to the SATA, HDMI and DVI industry standards. To accelerate the adoption of these standards and increase the market opportunity, Silicon Image is now licensing its proven IP cores to companies for integration in their system-on-a-chip (SOC) designs.

David Lee, chief executive officer of Silicon Image, noted that licensing is a critical component of the company's long-term growth strategy. "IP licensing is a part of our overall strategy to leverage our core technologies into market segments where we don't directly supply products. This should increase adoption of these standards and boost Silicon Image brand recognition." Lee added, "Our licensees specialize in integrating multiple functions into single-chip solutions for products like DVD players, cable and satellite set-top boxes, SATA hard disk drives and flat panel displays. Successfully producing these complex designs requires a quality core that has been validated through high-volume production and verified compliant with industry standards. Silicon Image's SATA, HDMI and DVI cores meet these rigorous requirements."

Silicon Image's family of SATALink™ cores supports the SATA 1 and SATA II rates of 1.5 Gbps and 3 Gbps, respectively, and is designed for next-generation hard disk drives. Multiple configurations are available, including SATA host and device-side logic cores (link, transport and interface logic) and a PHY core. Silicon Image's PanelLink® cores are DVI-compliant and support the full DVI bandwidth of 25 to 165 MHz for support of high-resolution VGA to UXGA (1600 x 1200) and beyond displays in a single-link configuration. Compliant with the HDMI 1.0 specification, Silicon Image's PanelLink Cinema™ cores are designed for consumer electronics products that transmit or receive premium digital content. These cores incorporate an extremely flexible, uncompressed audio and video interface and are ideal for next-generation DVD players, set-top boxes, A/V receivers, digital TVs and projectors.

Quality of IP is a primary concern of companies licensing IP for their SOC designs. Silicon verification is an important element in validating the quality of IP and is especially important for standards-based high-speed serial communications devices. Silicon Image tests interoperability and promotes compliance by sponsoring industry PlugFests and by hosting one of only two authorized HDMI compliance-testing centers in the world. As a result of this extensive verification testing and a proven track record shipping millions of DVI, SATA and HDMI devices, Silicon Image's designs have become the gold standard against which others test their interoperability.

"ATI is pleased to license Silicon Image's SATA IP," stated Allen Lee, VP Engineering, ATI Technologies, Inc. "Silicon Image has proven their expertise in offering time-to-market, high-quality SATA devices, and we are looking forward to deploying this technology in our world-renowned products to the benefit of our customers."

To facilitate a timely and successful integration into a licensee's design, Silicon Image has crafted a comprehensive IP core support program backed by a team of engineering specialists. Each core comes complete with design files, simulation and verification environments, and complete documentation. Licensees are supported through individual, secure portals where they can access their core's files and documentation 24/7.

Silicon Image cores have been designed and tested for production at TSMC and UMC. Upon request, Silicon Image can port these cores to other silicon vendors' processes to meet licensees' production needs. In addition to ATI, announced Silicon Image IP licensees include Novatek, Weltrend and Sunplus for the PanelLink DVI core. Licensee products incorporating the Silicon Image cores are in various stages of design, with some of the first products expected to appear later this year.

Information on Silicon Image's core licensing program may be found at the Silicon Image website at www.siliconimage.com.

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 regulations. These forward-looking statements include statements related to anticipated increases in standards adoption and Silicon Image name recognition, anticipated introduction of products incorporating Silicon Image cores and Silicon Image's position as a market leader. These forward-looking statements involve risks and uncertainties, including those described from time to time in Silicon Image's filings with the Securities and Exchange Commission (SEC), that could cause the actual results to differ materially from those anticipated by these forward-looking statements. In particular, standards may not be adopted at the rates anticipated, products may not be released when expected or at all, and Silicon Image may not achieve increased name recognition or leadership status. Also see "Management's Discussion and Analysis of Financial Condition and Results of Operations-Factors Affecting Future Results" in the most recent Annual Report, Form 10-K or 10-Q filed by Silicon Image with the SEC. Silicon Image assumes no obligation to update this forward-looking information.