Tualatin, Ore., December 22, 2000 — Pixelworks, Inc., the leading provider of system-on-a-chip ICs for the advanced display market (NASDAQ:PXLW), announced today that its ImageProcessor Architecture has been incorporated in three of NEC-Mitsubishi Electronics Display's high-resolution, premium quality LCD monitors. With the Pixelworks highly integrated ImageProcessor IC, the NEC MultiSync® LCD2010X, NEC MultiSync LCD1810X and NEC MultiSync LCD1800 provide broad interface compatibility, ease of use and superior image quality.

NEC-Mitsubishi Electronics Display's SXGA-resolution LCD monitors include the NEC MultiSync LCD1810X, the NEC MultiSync LCD2010X and the newest addition to its award-winning family of flat panel displays, the NEC MultiSync LCD1800, an 18.1-inch viewable flat-panel monitor. By working with Pixelworks, NEC-Mitsubishi Electronics Display was able to leverage a single software development across the three monitors, allowing them to be produced rapidly by eliminating parallel software development efforts. The competitively priced models are designed for corporate and professional environments including the financial, manufacturing, medical, computer-aided design, government and transportation industries.

The NEC MultiSync LCD2010X and NEC MultiSync LCD1810X, a 20.1-inch and an 18.1-inch viewable flat-panel monitor respectively, employ NEC's Ambix™ technology to incorporate a traditional VGA connection and the emerging Digital Visual Interface open standard interface for compatibility with both analog and digital standards. The NEC MultiSync LCD2010X and NEC MultiSync LCD1810X are NEC-Mitsubishi Electronics Display's first SXGA-resolution LCD monitors designed to work with legacy computing equipment and newer digital-only systems.

“NEC-Mitsubishi is the worldwide leader in desktop LCD monitors and we are committed to delivering display products that become the new standard in quality and innovation,” said Chris Connery, product line manager, NEC-Mitsubishi Electronics Display of America. “Utilizing Pixelworks' ImageProcessor Architecture, the NEC MultiSync LCD2010X, LCD1810X and LCD1800 deliver uncompromising image quality and ease of use to our award-winning line of flat panel display monitors.”

“We are proud to team up with industry leader NEC-Mitsubishi to bring their flagship line of high-resolution, large-screen flat panel displays to market. NEC-Mitsubishi demonstrates the value of using our ImageProcessor Architecture by enabling these three high-performance monitors to be developed rapidly using a consistent design,” said Allen Alley, Chairman, CEO and President of Pixelworks.

The NEC MultiSync LCD1810X, NEC MultiSync LCD2010X and NEC MultiSync LCD1800 are available through NEC-Mitsubishi Electronics Display's normal channels of distribution.

About NEC-Mitsubishi Electronics Display of America, Inc.
Headquartered in Itasca, Ill., NEC-Mitsubishi Electronics Display of America, Inc. is a wholly owned subsidiary of Tokyo-based NEC-Mitsubishi Electric Visual Systems Corporation, a joint venture company established by NEC Corporation and Mitsubishi Electric Corporation. The company began North American operations on July 1, 2000 and combines the desktop display monitor divisions of NEC Technologies and Cypress, California-based Mitsubishi Electronics America, Inc. Incorporating the strengths of NEC's worldwide leadership in LCD, Ambix™ and MultiSync® technologies, and Mitsubishi's market leadership in flat aperture grille CRT technology development, NEC-Mitsubishi Electronics Display is positioned to be one of the world's leading display monitor companies. For more information, visit www.necmitsubishi.com.

About Pixelworks, Inc.
Pixelworks, headquartered in Tualatin, Oregon, designs, develops and markets system-on-a-chip semiconductors and software that enable the visual display of broadband content through a wide variety of electronic devices. Pixelworks' solutions process and optimize video, computer graphics and Web information for display on a wide variety of devices used in business and consumer markets. For more information, please visit the company's Web site at www.pixelworks.com.

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

Safe Harbor Statement
This press release contains statements, including statements concerning the acceptance of the combined technologies by leading manufacturers that are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the company's business. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Actual results could vary materially from the description contained herein due to many factors including the non-acceptance of the combined technologies by leading manufacturers as well as the risks detailed from time to time in the company's Securities and Exchange Commission filings. The forward-looking statements contained in this press release speak only as of the date on which they are made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release. If the company does update one or more forward-looking statements, investors and others should not conclude that the company will make additional updates with respect thereto or with respect to other forward-looking statements.