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Silicon Image Debuts Industry's First End-to-End DVI Solution With HDCP Capability.

Business Editors/High-Tech & Entertainment Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--June 13, 2000

New PanelLink(R) transmitter and controller will

allow consumer electronics manufacturers to securely transmit

and display content-protected, high-definition

Hollywood video without fear of piracy

Silicon Image, Inc. (Nasdaq:SIMG), a leading provider of high-bandwidth semiconductor solutions, today debuted the industry's first end-to-end Digital Visual Interface (DVI) solution with High-bandwidth Digital Content Protection (HDCP) capability. The SiI 168 PanelLink(R) transmitter and SiI 861 PanelLink controller are the first DVI 1.0-compliant semiconductor chips to incorporate HDCP -- heralded by the Motion Picture Association (MPA) as a means of providing consumers with the high-definition, Hollywood-studio content they desire, while also preventing illegal and unauthorized duplication.

This industry milestone for consumers, Hollywood studios and consumer electronics manufacturers alike paves the way for consumers to receive previously unreleased and unavailable high-quality video-on-demand. In addition, it propels Silicon Image into the exploding consumer electronics sector, another mass market requiring a low-cost, high-speed interface.

Commenting on the industry's first HDCP-enabled chips, Mark Waring, strategic initiative manager at Intel, said, "We are delighted to see Silicon Image leading the market in enabling HDCP functionality so quickly after the release of the specification." The new DVI-based HDCP specification was released earlier this year by Intel at the February Intel Developer Forum. "We believe that this new technology will have broad applications to both the PC and consumer electronics markets," added Waring.

The SiI 168 transmitter and SiI 861 receiver are based on Silicon Image's proven foundation for the DVI I/O interconnect. Silicon Image's technology formed the basis for the industry's DVI standard, which was released in April 1999. To date, the company has sold more than 10 million PanelLink transmitters and receivers based on this core technology. Because HDCP adds an additional layer of functionality to DVI, the compliance of both the HDCP transmitter and receiver to the DVI standard are required for successful HDCP implementation. Silicon Image is uniquely positioned as the first manufacturer of both an HDCP transmitter and receiver, and the company notes that it has thoroughly tested the link between the two components.

Silicon Image Executive Vice President of Marketing and Business Development Steve Tirado noted that HDCP opens up a whole new realm of digital content for consumers. "It's plain and simple. Consumers will have a better and broader viewing experience with HDCP for DVI, and we believe PanelLink is well positioned to lead the market in quality, reliability and performance. Consumers are craving high-definition content but, until now, Hollywood studios had no means of protecting this video content from piracy. By innovating on the DVI link with HDCP, we've overcome the major hurdle to providing consumers access to premium home video content. As consumer electronics manufacturers begin to design HDCP-enabled chips into their products, the availability of high-definition, Hollywood studio-quality video should follow shortly thereafter. This is a win-win situation for all concerned -- including Silicon Image, which now has a strong entry point into the consumer electronics market."

The SiI 168 transmitter and SiI 861 controller provide a seamless, secure, end-to-end DVI solution for customers. The SiI 168 is easy for OEMs to implement because it is backwards compatible with the SiI 164 transmitter, Silicon Image's best-selling transmitter to date. The key difference is the SiI 168's additional HDCP circuitry, which allows the SiI 168 to encrypt the data to be content-protected by using special "keys" provided by the system manufacturer. The SiI 168 along with the new SiI 861 controller embedded in the display -- such as a liquid-crystal display (LCD), digital projector or high-definition TV (HDTV) -- verify that the display is the correct recipient for the data. Upon verification, the SiI 168 transmits the encrypted, uncompressed data, such as high-definition digital video, which is then authenticated by the SiI 861 controller and displayed for the end-user.

The SiI 168 operates with any PanelLink receiver to transmit standard DVI 1.0 video. Two SiI 168 transmitters may be used in a dual link mode to achieve data transfer up to 10 gigabits per second supporting very-high resolution displays up to 2056 x 2048. Silicon Image notes that all PanelLink transmitters introduced in 2001 will be HDCP-enabled. In the consumer electronics space, the markets for the SiI 168 transmitter include set-top boxes, which are projected to reach 28 million units in 2000 according to Gartner/Dataquest, as well as DVD players and digital VHS recorders. PCs are another target market.

The SiI 861 controller is a single-chip solution incorporating a PanelLink receiver and additional display functionality for high-end, flat panel display monitors. In addition to offering HDCP capability, the SiI 861 controller features advanced scalar and color enhancing technologies, which provide consumers with crystal clear, pure-digital images. The SiI 861 supports resolutions up to SXGA+ (1400 x 1050) with its parallel and integrated LVDS output enabling support of dual digital monitors. The SiI 861 is a simple, pure-digital controller that does not require a microcontroller, thus lowering system cost.

Sampling of the HDCP-enabled PanelLink controller is currently occurring by a select number of PC OEM and display manufacturers. Volume production of both the SiI 861 and SiI168 PanelLink chips is scheduled to begin in calendar Q3 -- making them the first DVI-compliant chips with HDCP functionality to hit the market.

About Silicon Image, Inc.

Silicon Image, Inc. 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, Sony, 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 customer plans to incorporate the SiI 168, SiI 861 and Silicon Image's PanelLink technology into its products, the timing of commencement of volume production of the SiI 168 and SiI 861, growth in the markets for consumer electronics and set-top boxes, and acceptance of our products and technology in these markets. 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 "Management's Discussion and Analysis of Financial Condition and Results of Operations-Factors Affecting Future Results" in the most recent Annual Report on Form 10K filed by Silicon Image with the SEC. Silicon Image assumes no obligation to update this forward-looking information.

Note to Editors: Product briefs and photos of the SiI 168 transmitter and SiI 861 controller are available upon request. Please contact Sheryl Gulizia at 408/616-1553 or via email at sgulizia@siimage.com.

PanelLink is a registered trademark of Silicon Image, Inc.
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Date:Jun 13, 2000
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