TUALATIN, Ore.--(BUSINESS WIRE)--Aug. 10, 2004--Pixelworks, Inc. (Nasdaq:PXLW), a leading provider of system-on-chip ICs for the advanced display industry, today announced that it has filed a registration statement on Form S-3 with the Securities and Exchange Commission ("SEC") relating to the resale of $150 million aggregate principal amount of its 1.75% convertible subordinated debentures due 2024 and the shares of its common stock issuable upon conversion of the debentures. The debentures were originally issued in private placements in May and June 2004.

When declared effective by the SEC, the registration statement will allow holders named therein to publicly resell the debentures and the Pixelworks common stock issuable upon conversion of the debentures.

Pixelworks will not receive any proceeds from the sale by any selling holder of the debentures or the shares of Pixelworks common stock issuable upon conversion of the debentures.

The registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.

Copies of the registration statement, including the prospectus subject to completion contained therein, are available on the SEC's Web site at http://www.sec.gov.

Pixelworks is a trademark of Pixelworks, Inc. All other trademarks and registration marks are the property of their respective corporations.

CONTACT: Pixelworks, Inc.
Investor Inquiries:
Jeff Bouchard, 503-454-1750 ext. 1771
jeffb@pixelworks.com
or
Media Inquiries:
Chris Bright, 503-454-1750 ext. 1770
cbright@pixelworks.com
or
www.pixelworks.com

SOURCE: Pixelworks, Inc.