Tualatin, Ore., May XXJune 1, 2001 — Pixelworks, Inc. (NASDAQ:PXLW), the leading provider of system-on-a-chip ICs for the advanced display market, is will introduceing two new ImageProcessor ICs at the Society for Information Display Symposium at the San Jose Convention Center, June 5- – 7, 2001. The new PW165A and the PW365 ImageProcessor ICs, featuring a new generation of Pixelworks' award-winning image processing technology, are designed for high high-performance video and multimedia applications on for flat panel monitors, advanced television and multimedia projectors.

The two image processing chips introduce the latest a new generation of Pixelworks' advanced Auto automatic optimization circuitry which automatically recognizes incoming signals regardless of source and instantly optimizes the image by setting sample clock frequency, phase, black- and- white levels and image balance without user intervention. The new chips also feature video processing enhancements including on-chip temporal de-interlacing and color space conversion.

The PW365 ImageProcessor IC is designed to extend Pixelworks performance and features in the multimedia projector and advanced TV television market. It features a new generation ofof The PW 365 incorporates programmable, multi-region, non-linear scaling technology designed for converting aspect ratios between video content formatted in either 4:3 andor 16:9 aspect ratios video content and advanced displays without no noticeable distortion or artifacts. The PW365 features up- and -down- scaling technology uses using independent horizontal and vertical DSP scalers. as well as the ability to program image The ssharpness using of the display is programmable with customizable filters. Computer images from VGA to UXGA can be resized to fit on display devices up to UXGA resolution with full 24-bit color. The PW365 also supports PPIP icture in Picture (PIP) functionality providing end-users with more flexibility in viewing multiple media sources.

For projection applications the PW365 introduces an innovative industry first, horizontal keystone correction, which can be used to “square” the projected image when it is off-center from the screen. When combined with Pixelworks vertical keystone correction, projector end-users have tremendous flexibility in projector placement in relation to the screen.

The PW165A ImageProcessor is designed for low cost multimedia monitors and TV applications supporting analog, digital and video inputs. The PW165A delivers Picture in Picture (PIP) capability, previously only available with Pixelworks' high- end ImageProcessor ICs, in a product clearly targeted at mainstream applications. With up- and down- scaling using independent horizontal and vertical DSP scalers, computer images from VGA to UXGA resolutions can be resized and optimized for display on nearly any resolution display. The PW165 makes an ideal choice for multimedia LCD monitors due to itsWith on-chip video processing technology and picture-in-picturePIP capability., the PW165 makes an ideal choice for multimedia LCD monitors.

The new ImageProcessor system-on-a-chip ICs are fully compatible with the Pixelworks ImageProcessor Architecture which that was awardedearned the 1999 SID Information Display Magazine Display Material or Component of the Year recognizing important contributions to display performance, manufacturability and economy. Both chips feature an on-board x86 compatible microprocessor and a complete software environment designed to reduce development and manufacturing ramp-up time.

The fully integrated software suite includes point and click WindowsÒ development tools and drivers designed to simplify hardware configuration, user interface design and debugging. With a common code base that can be used across display product categories and product lines, only minor code changes are needed to port software to create new products with different features while maintaining a consistent “look and feel” for branding integrity.

The PW165A and PW365 are currently available in quantity and Pixelworks will be on displaydemonstrate the new ImageProcessor ICs at the Society for Information Display Symposium in San Jose held from June 5th -– 7th, 2001.. Pixelworks' exhibit is located in the San Jose Convention Center, bBooth 508/510.

About Pixelworks, Inc.
Pixelworks, headquartered in Tualatin, Oregon, is the leading provider of system-on-a-chip ICs for the advanced display market. 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.