`PanelLink Goes Hollywood'.

Business Editors/High Tech Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--March 14, 2000

Silicon Image demos first high-speed digital DVI link with new

HDCP content protection capability to Hollywood studios and leading

consumer electronics manufacturers

Silicon Image, Inc. (Nasdaq: SIMG), a leading provider of high-bandwidth semiconductor solutions, announced that it is demonstrating its new PanelLink(R) branded High-bandwidth Digital Content Protection (HDCP) technology for the Digital Visual Interface (DVI) to the members of the Content Protection Technology Working Group (CPTWG) today in Los Angeles, Calif. This influential group includes a number of leading consumer electronics manufacturers, Hollywood studios and information technology manufacturers, all of whom are interested in driving an industry transition to secure high-definition digital video content for consumer electronics products such as DVD players, set-top boxes, digital TVs, HDTVs, and PCs with DVDs.

This demonstration occurs less than one month after Intel Corp. (Nasdaq: INTC) introduced the new HDCP industry specification for DVI, and after Silicon Image demonstrated the industry's first transmitter and receiver to implement the encryption/decryption algorithms described in the HDCP specification. The hardware for the CPTWG demonstration consists of a PanelLink transmitter and receiver performing the HDCP functions, and a NVIDIA(TM) GeForce(TM) GPU DVI graphics card providing a 720p high-definition TV digital video. Transmitter and receiver products with HDCP are on schedule and are expected to be available from Silicon Image during the second quarter of 2000.

"Warner Bros. has a library of movies and television productions that look great in the new high-definition digital formats," said Wendy Aylsworth, vice president, technology at Warner Bros. "We are pleased to see the work done by Silicon Image to develop the HDCP chip set, and welcome the deployment of such technology. It is important for consumers to understand that systems that lack an effective technology to limit unauthorized copying of our most valuable and highest quality content will not be able to receive it."

Phil Lelyveld, director of digital industry relations at The Walt Disney Company added, "Secure interconnections such as HDCP are important elements of an overall content delivery system, addressing a key need in the development of new channels for high quality digital content delivery."

Commenting on the momentum of the HDCP specification and the transition to digital video content, Silicon Image's Executive Vice President of Marketing, Steve Tirado noted, "We are enabling the industry transition to new high-definition digital content. This latest demonstration reflects our ability to successfully execute on our DVI innovation strategy, lead the market we are pioneering and receive endorsement of this vital new technology from members of the Motion Picture Association (MPA). Worldwide adoption of HDCP DVI by multiple industries will have huge implications for the PC and consumer electronics industries because high-definition video content producers, such as Hollywood studios, will be able to securely release new, high-definition digital content."

The trend toward digital content is being driven by several factors. First, consumers are demanding greater functionality from their electronic products, and this functionality is increasingly including a digital capability. Second, Hollywood studios are aggressively pushing the market to produce ever-higher-quality digital output. Third, the increasing convergence of the PC and consumer electronics markets is broadening the opportunities for digital content. Now, consumers can surf the web and access email on an Internet appliance connected to their home TV, and similarly, end users can watch movies and TV on their PCs using DVD players and TV add-in cards.

Silicon Image, whose PanelLink DVI implementation is now the leading technology for digital monitor connections, is driving the PC market's transition to digital. HDCP capability adds another layer of functionality to DVI technology, which Silicon Image pioneered. Combined, these technologies address an emerging market need and offer the company broader access to the consumer electronics market, which is projected to reach 212 million units by 2002.

About Silicon Image

Silicon Image designs, develops and markets semiconductor solutions for applications that require cost-effective, high-bandwidth, integrated solutions for high-speed data communications. The company's PanelLink technology provides scalable, end-to-end, all-digital connectivity between computers, controllers, or other sources of video and digital video display devices such as flat-panel monitors or digital CRTs.

Silicon Image's products have been incorporated in host systems and displays sold by leading manufacturers such as Apple, ATI, Compaq, Fujitsu, Gateway, Hitachi, IBM, LG, Matrox, NEC, Princeton Graphics, Samsung, Sharp, Toshiba and ViewSonic. The PanelLink protocol has been adopted by the Digital Display Working Group (DDWG) in the now established Digital Visual Interface (DVI) specification. Silicon Image, Inc. is based in Sunnyvale, Calif. For more information on Silicon Image, Inc. and its solutions, visit www.siimage.com

This news release contains forward-looking information within the meaning of federal securities regulations. These forward-looking statements include statements related to development of new products by Silicon Image that support the HDCP specification, the timing of Silicon Image's introduction of these products, demand for products that support the HDCP specification, the trend to digital content, the effect of adoption of HDCP on the PC and consumer electronics industries and growth of the consumer electronics market. 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, see "Risk Factors" in the recent Registration Statement on Form S-1 and quarterly report on Form 10-Q filed by Silicon Image with the SEC. Silicon Image assumes no obligation to update this forward-looking information.

Note to Editors: PanelLink is a registered trademark of Silicon Image, Inc. NVIDIA and GeForce are trademarks of NVIDIA Corporation