China Video Industry Association Agrees to Promote and Support HDMI(TM), Will Develop HDMI Technology With Silicon Image

China Video Industry Association Agrees to Promote and Support HDMI(TM), Will Develop HDMI Technology With Silicon Image

China Digital Interface Industry Alliance (CDIA) Formed; New HDMI(TM) and Simplay HD(TM) Testing Centers Established in China

BEIJING and SUNNYVALE, Calif., July 20 /PRNewswire-FirstCall/ -- Silicon Image, Inc. (NASDAQ:SIMG), a leader in semiconductors for the secure storage, distribution and presentation of high-definition content, today announced a landmark agreement with the China Video Industry Association (CVIA) under which CVIA will promote and support the use of High-Definition Multimedia Interface(TM) (HDMI(TM)) by the consumer electronics industry in China. The agreement with CVIA positions China to play a major role developing next-generation digital consumer electronics technology.

As part of the agreement, Silicon Image and CVIA have agreed to work together to promote HDMI adoption among domestic Chinese electronics manufacturers, co-develop new technology applicable to HDMI, and collaborate on establishing testing and interoperability certification labs that complement the capabilities of the HDMI Authorized Testing Centers established by Silicon Image.

In addition, Silicon Image will support the China Digital Interface Industry Alliance (CDIA), an industry alliance consisting of major Chinese electronics manufacturers that CVIA is establishing. CDIA will work to promote the use of HDMI in consumer electronic products, promote communications among manufacturers in China and abroad, and strengthen coordination between hardware manufacturers and content providers.

In a related announcement, HDMI Licensing, LLC, today announced a global reduction in the annual administration fee charged to HDMI adopters. The fee reduction was made possible by HDMI's growing success in the marketplace; more than 400 makers of consumer electronics and PC products worldwide have adopted HDMI, including 82 companies in China.

Based in Beijing, the China Video Industry Association (CVIA) is China's industry association for manufacturers of digital television, digital movie/broadcasting, high definition optical disc, set-top box and information technology equipment and components, and is focused on promoting China's digital consumer electronics industry.

In 2005, China manufactured 82 million televisions and 140 million DVD or VCD players, according to CVIA. Sales of plasma and LCD TVs are forecast to grow 105 percent this year to $5.5 billion, and are estimated to reach $10.5 billion in 2008, according to IDC.

"Today China is taking a major step forward in promoting the development of its digital consumer electronics industry," said Bai Weimin, director of the Department of Broadcasting and Television, Ministry of Information Industry. "CVIA's agreement to partner with Silicon Image to develop new digital interface technology will further the development of China's electronics manufacturers as leaders in creating advanced digital technologies."

"Under this agreement, China's companies will not only embrace the global HDMI standard but will partner with Silicon Image to participate in future technology development for HDMI," said Hao Yabin, vice secretary-general of the China Video Industry Association. "This agreement will help China develop its own intellectual property, protect the interests of China's digital consumer electronics industry, and improve the cooperation and mutual benefit of the domestic and international high definition technology industries."

"Silicon Image will work closely with China's digital consumer electronics industry to help create innovative, cutting edge products and technologies," said Steve Tirado, president and CEO of Silicon Image. "This agreement represents an important expansion of the HDMI standard into the world's largest consumer market, and strongly re-affirms HDMI as the worldwide standard for high-definition digital devices."

New Testing Labs

As part of the agreement, Silicon Image and CVIA will cooperate in establishing testing and interoperability certification labs (see accompanying press release, "Silicon Image Expands HDMI and Simplay HD Testing in China"). Silicon Image will continue to operate HDMI(TM) Authorized Testing Centers (ATCs) and Simplay HD(TM) Testing Centers in China. In addition, Silicon Image, through its wholly-owned subsidiary, Simplay Labs, LLC, and CVIA will work together to establish testing and interoperability certification labs that complement the capabilities of the HDMI ATCs.

Silicon Image today also announced the opening of China's second combined HDMI ATC / Simplay HD Testing Center in Shanghai, and with the support of CVIA plans to open a third such facility in China at a location to be determined.

The Simplay HDTM Testing Program consists of branding, compatibility testing, and education for consumers to provide them with a consistent "plug and play" user experience and to maximize their access to premium high definition (HD) content.

About Silicon Image, Inc.

Headquartered in Sunnyvale, Calif., Silicon Image, Inc. is a leader in driving the architecture and semiconductor implementations for the secure storage, distribution and presentation of high-definition content in the consumer electronics and personal computing markets. Silicon Image creates and drives industry standards for digital content delivery such as DVI, HDMI(TM) and UDI, leveraging partnerships with global leaders in the consumer electronics and personal computing markets to meet the growing digital content needs of consumers worldwide. The Simplay HD(TM) Testing Program administered by Silicon Image's wholly-owned subsidiary, Simplay Labs, LLC, provides compatibility testing for high definition consumer electronics devices such as HDTVs, set-top boxes, audio/video receivers and DVD players, helping manufacturers to achieve compatibility and deliver the highest-quality HDTV experience to consumers. Silicon Image is also one of the top ten semiconductor IP licensing vendors in the world. For more information, please visit www.siliconimage.com.

Forward-looking Statements

This news release contains forward-looking information within the meaning of federal securities regulations. These forward-looking statements include statements related to the proposed plans for collaboration between CVIA and Silicon Image in promoting the adoption of the HDMI(TM) standard among Chinese electronics manufacturers and in co-developing new technology applicable to the HDMI standard, including plans for the formation of the China Digital Interface Industry Alliance, and the establishment of new testing and interoperability certification facilities in China, the anticipated benefits of such collaboration and facilities, the anticipated market acceptance of the HDMI standard and the anticipated market growth and consumer demand for HDMI- compatible products, consumer electronics and personal computing products in China and worldwide, the role of Silicon Image and CVIA in promoting and meeting such anticipated market growth and consumer demand, and the benefits, performance and features of the Simplay HD(TM) Testing Program. 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, the proposed plans for collaboration between CVIA and Silicon Image in promoting the adoption of the HDMI standard among Chinese electronics manufacturers and in co-developing new technology applicable to the HDMI standard, including plans for the formation of the China Digital Interface Industry Alliance, and the establishment of new testing and interoperability certification facilities in China, the anticipated benefits of such collaboration and facilities, the anticipated market acceptance of the HDMI standard and the anticipated market growth and consumer demand for HDMI-compatible products, consumer electronics and personal computing products in China and worldwide, the role of Silicon Image and CVIA in promoting and meeting such anticipated market growth and consumer demand, and the benefits, performance and features of the Simplay HD Testing Program may differ materially from what is currently anticipated. In addition, see the Risk Factors section of the most recent Form 10-K or Form 10-Q filed by Silicon Image with the SEC. Silicon Image assumes no obligation to update any forward-looking information contained in this press release.

Source: Silicon Image, Inc.

CONTACT: media, Kasey Holman, Media Relations, +1-408-616-4192, or
Kasey.Holman@siliconimage.com, or investors, Robert Freeman, Chief Financial
Officer, +1-408-616-1571, or Robert.Freeman@siliconimage.com, both of Silicon
Image, Inc.

Web site: http://www.siliconimage.com/

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