PRESS RELEASE

For further information contact:

Sheryl M. Gulizia
Manager, Public Relations
Silicon Image, Inc.
Phone: 408/616-1553
Fax: 408/830-9527
sgulizia@siimage.com

Marie Labrie
Account Director
MCA
Phone: 650/968-8900
Fax: 650/968-8990


CE INDUSTRY HEAVYWEIGHTS PROCLAIM DVI HDCP AS THE INTERFACE FOR HDTV-FURTHER PROPELLING SILICON IMAGE INTO THE CE SPACE

Silicon Image Showcases Premium Hollywood Studio Content Enabled by Digital Set Top Boxes, VHS Players and HDTVs Featuring DVI HDCP Technology

LAS VEGAS, January 4, 2001 — Silicon Image (Nasdaq: SIMG), a price/performance leader in high-bandwidth semiconductor solutions for mass markets, today announced that it will showcase prototype digital set-top boxes, digital VHS players and HDTVs featuring premium, high-definition Hollywood studio content during the Consumer Electronics Show (CES), January 6-9 at the Las Vegas Convention Center. These breakthrough consumer electronics devices are enabled by Digital Visual Interface (DVI) technology with High-bandwidth Digital Content Protection (HDCP), which elevates the home entertainment experience to unprecedented levels by allowing consumers to view first-rate Hollywood movies in high-definition formats without leaving their living room.

High-definition (HD) consumer electronics devices showcased in Silicon Image's booth at CES (LVCC South 1-2 #3817) will include digital set-top boxes from Echostar, Scientific Atlanta and Samsung. In addition, a prototype D-VHS player from JVC will play high-definition premium digital content from Universal Studios and Fox that has not been released to VHS or DVD-some of which is currently playing in theaters around the country. D-VHS is a new breed of VCR that is all digital and capable of playing HD-formatted videotapes.

Andrew G. Setos, executive vice president of the Fox News Technology Group, said, "The entire Twentieth Century Fox library of motion pictures and our future productions released in digital, high-resolution formats will represent a whole new viewing experience on widescreen digital TVs. Up until now, few motion pictures have been available in consumers' homes in this high-quality form. We look forward to making our motion pictures widely available using new consumer electronics devices such as D-VHS and digital set-top boxes as these products begin to embrace DVI output connections that only transmit HDCP content to displays for an all-digital, high-resolution experience."

Consumers prefer HD content, which has dramatically better image quality than that currently offered by DVDs. Major motion picture studios such as Fox, Universal and Warner Bros. have movies in HD formats that consumers will want to rent or purchase for viewing on their HDTVs or home theater projection systems. Until the advent of HDCP for DVI, studios have been reluctant to release this premium digital content for fear of unauthorized reproduction and distribution of perfect digital copies. By encrypting premium HD video between digital consumer electronics host and display devices, DVI with HDCP provides an effective defense against piracy, while providing the home viewer with the highest quality visual experience. Paving the way for the release of this content, satellite broadcasters and consumer electronics manufacturers have indicated their support for HDCP and willingness to incorporate DVI with HDCP in their products.

Silicon Image's PanelLink® is the leading DVI implementation-having proven its robustness in high-volume mass markets with more than 15 million units shipped. DVI is the only digital interface with enough bandwidth to accommodate uncompressed high-definition digital video. Lower bandwidth alternatives must first compress the video before transferring it to a digital display, which requires additional components-including an MPEG decoder in the TV. Furthermore, HDCP, which has been endorsed by Fox, Universal, Warner Bros. and Disney, is only available over the DVI link.

Jerry Pierce, senior vice president, Universal Pictures, said, "High-definition movies will offer consumers the ultimate in a home theater experience. DVI ensures the highest quality image in a home system. HDCP provides a secure environment that offers content providers the necessary protection for the HD format. Systems that require HDCP can expect the highest quality content in the future."

Kazuo Kohda, general manager of digital strategy, JVC AV & Multimedia Company, noted, "JVC is planning to adopt DVI with HDCP as an output connection for pre-recorded D-VHS content in the future. We believe that high-definition uncompressed digital signals are essential to providing the highest quality home-viewing experience for consumers. DVI/HDCP is the only practical, secure solution today for those uncompressed digital connections and will be essential when transmitting high-value, high-definition content. Likewise, we will aggressively pursue the adoption of DVI/HDCP inputs on all future high-definition displays."

Michael Harney, corporate vice president and general manager of Scientific-Atlanta's Subscriber Networks said, "As a leading supplier of set-top boxes for cable operators, Scientific-Atlanta is at the forefront of technology that will enable cable operators to deliver the best possible entertainment content to their customers. The DVI digital connection with HDCP copy protection fits this strategy, and we are pleased to work with Silicon Image to provide a demonstration of this technology on our ExplorerÒ 8000HD high-definition set-top box."

Because it is a high-bandwidth, all-digital solution, DVI offers new possibilities for home entertainment system architecture, which were previously unavailable. DVI has the bandwidth to address each pixel in a digital TV display individually-enabling the highest possible picture quality. This is achieved without concern that the internal electronics will be made obsolete by changing interface or compression technologies.

Steve Tirado, chief operating officer for Silicon Image, noted, "HDTV represents the next revolution in home entertainment, and DVI with HDCP is the logical choice for the last critical connection between digital hosts, such as D-VHS players and set-top boxes, and digital TVs. We are thrilled to see so many examples of consumer electronics products featuring DVI/HDCP at CES. Once consumers see premium high-definition content on an HDTV and experience its unparalleled visual quality, we don't think they will want to go back to the status quo. In order for HDTV adoption to really take off, the industry needs to rally around a new standard. Key players at all levels of the HDTV supply chain, including consumer electronics manufacturers, satellite broadcasters and Hollywood studios, have already endorsed DVI with HDCP, bringing us all a step closer to more widespread proliferation of HDTV."

Silicon Image was the first to demonstrate HDCP technology in February 2000 when Intel introduced the HDCP specification for DVI. In June 2000, Silicon Image introduced the first HDCP-compliant transmitter and monitor controller.

Silicon Image will be exhibiting at its booth LVCC South 1-2 #3817 during CES, held January 6-9, 2001, at the Las Vegas Convention Center. Editors interested in scheduling briefings to learn more about Silicon Image and the benefits of DVI/HDCP may contact Stacey Voorhees at MCA at 650-968-8900 x108.

About PanelLink

Recognizing the need for a worldwide, open specification for a cost-effective, high-bandwidth digital display solution, Silicon Image, together with Intel, Compaq, Fujitsu, HP, IBM and NEC, formed the Digital Display Working Group (DDWG). The DDWG subsequently defined and published the Digital Visual Interface (DVI) specification based on Silicon Image's PanelLink protocol. The industry's leading DVI implementation, PanelLink provides scalable, end-to-end, all-digital connectivity between host devices and digital displays such as flat-panel monitors, projectors, high-definition TVs and digital CRTs. PanelLink has been incorporated in host systems and displays sold by all of the top 10 PC OEMs and display manufacturers.


About Silicon Image

Headquartered in Sunnyvale, Calif., Silicon Image, Inc. designs, develops and markets high-speed semiconductor solutions for a variety of communications applications that require cost-effective, high-bandwidth capabilities. Leveraging Silicon Image's circuit innovation at the physical layer, the company's proprietary, reduced overhead Multi-layer Serial Link (MSL™) architecture is well suited to address a number of mass markets with aggressive bandwidth price/performance requirements-including the display, storage and networking sectors. Evidencing its success, Silicon Image has shipped more than 15 million high-bandwidth, low-cost semiconductor solutions to the PC market alone. For more information on Silicon Image and its proven multi-layered, high-speed interconnect technology, visit www.siimage.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 introduction of prototype digital set-top boxes, digital VHS players and HDTVs, the expectation of adoption of DVI/HDCP by HDTV interests 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 Silicon Image chips and may not generate revenues or profits. The HDTV marketplace may not adopt DVI/HDCP or may not procure DVI/HDCP 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.


Silicon Image and PanelLink are trademarks or registered trademarks of Silicon Image, Inc. in the United States and other countries. Other trademarks are the property of their respective owners.


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