Silicon Image Revises Third Quarter 2009 Revenue Outlook

SUNNYVALE, Calif. -- Sep 28, 2009 -- Silicon Image, Inc. (NASDAQ: SIMG), a leader in semiconductors and intellectual property for the secure distribution, presentation and storage of high-definition (HD) content, today announced that it expects revenue for fiscal third quarter 2009 to be below the financial guidance previously provided on July 23, 2009. The Company now expects its Q3 2009 revenue to be approximately $37 to $39 million, as compared to the previous guidance of $44 to $46 million.

"We are disappointed to report this revised revenue outlook," said Hal Covert, the Company's president and chief operating officer. "During the third quarter of 2009 we continued to experience the impact of the product transition the Company has been undergoing since 2008, in particular its effect on legacy products' declining average selling prices. This factor, combined with our customers' shift in production from high-end products to mid-range and low-end products, has put more pressure than anticipated on Silicon Image's goal of improving revenue generation. We are looking forward to entering 2010 with our new product line-up that features HDMI(R) 1.4, Mobile High-Definition Link, and SteelVine(TM) Series 3 technologies," continued Covert.

In other news, a separate press release was issued announcing the formation of the Mobile High-Definition Interface Working Group with Nokia Corporation, Samsung Electronics Co., Ltd, Silicon Image, Inc., Sony Corporation, and Toshiba Corporation. This is an important step in the process of Silicon Image moving forward with its strategy around Mobile High-Definition Link technology.

The Company will host an investor conference call today at 2:00 p.m. U.S. Pacific Time (5:00 p.m. U.S. Eastern Time) and will webcast the call. To access the conference call, dial 888-293-6979 or 719-325-2236 and enter pass code 3885401. The webcast will be accessible on Silicon Image's investor relations web site at http://www.siliconimage.com. A replay of the conference call will be available within two hours of the conclusion of the conference call through October 3, 2009. To access the replay, please dial 888-203-1112 or 719-457-0820 and enter pass code 3885401.

About Silicon Image, Inc.

Silicon Image, Inc. is a leading provider of semiconductor and intellectual property products for the secure distribution, presentation and storage of high-definition content. With a rich history of technology innovation that includes creating industry standards such as DVI and HDMI, the company's solutions facilitate the use of digital content amongst consumer electronics, personal computer (PC) and storage devices, with the goal to securely deliver digital content anytime, anywhere and on any device. Founded in 1995, the company is headquartered in Sunnyvale, California, with regional engineering and sales offices in China, Germany, Japan, Korea and Taiwan. For more information, please visit http://www.siliconimage.com/.