PanelLink Technology Fuels New Compaq All-Digital Computer Video; Silicon Image Chips Provide First Low-Cost Digital Interface for Flat-Panel Monitors.

CUPERTINO, Calif.--(BUSINESS WIRE)--June 9, 1998--The key enabling technology that fuels Compaq Computer Corporation's (NYSE:CPQ) launch today of the world's first personal computers with fully-integrated, all-digital end-to-end video was developed by Silicon Image, Inc. The Compaq Presario is the first PC to offer a 100 percent digital interface to flat-panel monitors, such as Compaq's simultaneously-announced high-quality, low-cost FP500. A Silicon Image PanelLink Digital transmitter chip is used in the PC to deliver digital video signals from the PC's new digital flat-panel port to PanelLink Digital receiver chips used in the FP500 flat-panel monitors. Previously, flat-panel monitors relied upon expensive, lower-performance analog interfaces.

"The future for computers and consumer electronics is all-digital video," said David Lee, chairman and CEO of Silicon Image. "Compaq's announcement may mark the turning point away from legacy, analog monitors and interfaces. Essentially, digital video is here today -- available to anyone."

Laurie Frick, Vice President, Consumer Peripherals, Compaq Computer Corporation, said, "Our new FP500 Flat Panel Display represents a milestone in computing and with PanelLink technology offers consumers the highest image quality and excellent reliability at a very low cost."

Compaq's digital flat-panel interface is based upon a new transmission methodology for high-speed digital video invented by Silicon Image, Inc. The methodology permits a common interface, connector, and cable to drive desktop or wall-mounted flat-panel monitors with resolutions ranging from VGA (640x480 pixels) to HDTV/UXGA (1600x1200 pixels.) Low cost Silicon Image PanelLink Digital transmitter and receiver chips - which may be built into any computer, video board and flat-panel monitor -- complete the interface. Silicon Image makes a growing family of such chips to meet the needs of a wide range of computer, board, and display manufacturers.

According to Dataquest's Martin Reynolds, a well-known industry analyst, "The analog signal used to drive CRT's is generally less than perfect, and precisely converting it to a flat panel image requires both expensive electronics and a sophisticated user capable of tweaking the settings to be just right. Therefore, analog flat-panel monitors suffer a twin penalty of cost and a hard-to-tune screen image. The digital interface lowers the selling price of the product, and guarantees the superb image quality that flat panels can deliver. The DFP interface will be instrumental in kick-starting the desktop LCD market."

Silicon Image's PanelLink Digital technology consists of a unique, new coding scheme for high-speed digital transmission over low-cost, twisted-pair cable, and a family of transmitter and receiver chips which use this methodology. Announced PanelLink Digital chips for use by computer, video board, flat-panel display, and consumer electronics manufacturers, include the SiI100 and SiI140 series of discrete transmitters and SiI101 and SiI141 series of receiver chips. All are available in production quantities from Silicon Image.

Silicon Image, Inc. is the industry leader in high-speed, low-cost all-digital video/graphics display interface technology. The company's PanelLink Digital technology implements the industry's only standard, open, scaleable, end-to-end, serial, all-digital physical connectivity between computers, controllers, or other sources of video and digital video display devices such as flat-panel monitors. PanelLink technology is available from Silicon Image in a variety of chipsets and key elements of this technology are the foundation of leading market standards efforts including VESA (Video Electronics Standards Association) "Plug & Display," TMDS, and the DFP (Digital Flat Panel) initiative's specification. Silicon Image designs and markets families of low-cost IC's for use by manufacturers of computers, controller boards and flat-panel displays. PanelLink Digital technology has been adopted by ATI, Matrox, STB, Elsa, I/O Data, LG Electronics, Melco, Princeton Graphics, Samsung, Viewsonic, Mag Innovision, Siemens-Nixdorf, Toshiba, and others. Silicon Image may be visited on the Web at www.siimage.com.

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