Techwell Announces TW8810 In-Car LCD Display Processor for Sharp Dual Directional Viewing LCD Panels.

SAN JOSE, Calif. -- Techwell, Inc., a leading designer of mixed signal video semiconductor solutions for the automotive, consumer electronics, and security surveillance industries, today announced the release of the TW8810 In-Car LCD Display Processor for Sharp Dual View Panels. The TW8810 targets in-car display applications including navigation systems, in dash DVD players, rear-seat/head-mount displays and automotive TVs and is capable of simultaneously displaying different content viewable from various user angles depending on where the screen is being viewed from. As a result, automotive manufacturers can use the TW8810 to support applications where the driver is viewing a navigation system and the passenger is viewing a DVD title. Similarly, automotive manufacturers can use the TW8810 to enable two passengers in the rear seat of a car to view two different movies on the same screen.

"We are excited to have developed the TW8810 to support the Sharp Dual View Display," said Hiro Kozato, CEO of Techwell, Inc. "We continue to make significant investments in the In-Car LCD display market and feel that the TW8810 is another significant step as we look to build our market share."

In addition to supporting Sharp Dual View Panels directly, the TW8810 has multiple input formats including composite, S-Video, YPbPr, analog RGB, 24-bit digital RGB, and 8/16/24 bit YCbCr. For composite video streams, a high quality 3D comb filter for NTSC and PAL with concurrent 3D noise reduction is integrated to reduce artifacts typically found in analog video signals. A number of proprietary image processing algorithms were implemented in the TW8810 to improve picture quality including a built-in 2D de-interlacing engine with low angle compensation, black/white stretch and color enhancement. Delivering high quality in-car multimedia, greater performance and functionality, the TW8810 also has a sophisticated Picture-in-Picture (PIP) function that includes PIP with variable sub-window size, picture-over-picture (POP) and multiple PIP. The TW8810 on-screen display (OSD) can select 256 colors from 24-bit colors (16.7 million colors) and is a graphic style OSD with a variety of functions including blinking, transparency, blending and multi-window support.

Pricing and Availability

Techwell's TW8810 will be on display at the Company's booth #5403 North Hall LV Convention Center at CES 2007 in Las Vegas from January 8th to January 11th. Manufactured by TSMC in Taiwan, the TW8810 utilizes a 208 pin PQFP package and is qualified for industrial grade temperatures -40C to +85C. TW8810 samples, evaluation systems, and documentation will be available in Q1 to qualified customers. TW8810 is expected to go into mass production in the second half of 2007. Please contact your local Techwell sales office, representative or [e-mail] for pricing and availability.

About Techwell

Techwell is a semiconductor company that designs, markets and sells mixed signal integrated circuits for multiple video applications in the security surveillance, automotive and consumer electronics markets. Techwell designs both general purpose and application specific products that enable the conversion of analog video signals to digital form and perform advanced digital video processing to facilitate the display, storage and transport of video content. Headquartered in San Jose, CA, Techwell currently has over 90 employees in the U.S., Korea, Taiwan, China and Japan. Please visit www.techwellinc.com for more information.

Forward-looking Statements

This press release and related conference call contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may be identified by terminology such as may, will, could, should, anticipate and expect and the negative of these terms or other similar expressions. These are statements that relate to future events and include, but are not limited to the success of the TW8810 and our ongoing relationship with Sharp, as well as the migration by future customers to Techwell's next generation video decoders. These are statements that relate to future events and include, but are not limited to Techwell's belief that demand for its products will continue to grow in the second half of 2007 and its ability to better address customer requirements, leverage technology capabilities and achieve greater market share, statements relating to future opportunities, success in digital video markets, continued growth as a public company and its anticipated revenues and operating expenses for the third quarter of 2007. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in these forward-looking statements. These risks and uncertainties include, but are not limited to: Techwell's dependence on increased demand for digital video applications for the consumer, security surveillance and automotive markets, the potential decline in average selling prices for Techwell's products, competition, dependence on key and highly skilled personnel, the ability to develop new products and enhance existing products, as well as other risks detailed from time to time in its SEC filings, including those described in the Risk Factors section in Registration Statement on Form S-1. Statements included in this release are based upon information known to Techwell as of the date of this release, and Techwell assumes no obligation to update information contained in this press release.