Flat Information Displays Conference, Monterey, Calif., Dec. 16, 1999 — Pixelworks today demonstrated the scalability of its highly integrated ImageProcessor Architecture by publicly unveiling a new ImageProcessor solution powering a super-resolution LCD panel from IBM (NYSE:IBM), the world's largest information technology company. The award-winning ImageProcessor Architecture enables the highest resolution, production-level TFT-LCD panel in the world to show superb computer and video images on the large-format screen for maximum information content on a single device.

The commercially available ImageProcessors are capable of running the QXGA-resolution display at its native resolution of 2,048 by 1,536 pixels using 24-bit color and at 60MHz refresh rate, which requires more than 5 Gigabits per second of bandwidth. The ImageProcessor Architecture provides this super-resolution monitor with the same industry leading image resizing, automatic image optimization, high-performance video, including HDTV, and broad compatibility as found in other advanced display products using Pixelworks' technology.

Pixelworks demonstrated the ability of the ImageProcessor Architecture to speed time to market by executing development on extremely compressed schedules. In the case of the IBM QXGA panel, Pixelworks' engineering team completed a new reference design and had the panel working in less than six weeks.

"The combination of the IBM ITQX20 panel and Pixelworks' ImageProcessor Architecture resulted in a stunning demonstration at Fall Comdex," said Alan Jones, Worldwide Business Development Manager for IBM Technology Group's Display Business Unit.

"Collaborating with a world leader like IBM to push display technology to new levels is a great honor for Pixelworks," said Allen Alley, CEO and Chairman of Pixelworks. "This panel goes a long way to showing the power of having unprecedented amounts of visual information available on a single device."

IBM's ITQX20 TFT-LCD panel measures 20.8 inches and is the world's first commercially available QXGA-resolution display. At an almost print quality 123 pixels per inch, the 3.15 million pixels display the equivalent content of four XGA-resolution monitors on a single screen.

The super-resolution reference design using Pixelworks ImageProcessors is now available. For more information, contact Pixelworks by e-mail at info@pixelworksinc.com.

About ImageProcessor Architecture
Pixelworks ImageProcessors are a significant enabling technology driving the broad adoption of advanced display products. Pixelworks ImageProcessors "system-on-a-chip" integrated circuits (ICs) are the world's first and only single-chip display controllers. Pixelworks ImageProcessors earned the distinguished 1999 SID Information Display Magazine Display Material or Component of the Year Gold Award, the top annual recognition in the electronic display industry.

ImageProcessors from Pixelworks are creating new benchmarks in image quality, broad compatibility, effortless ease of use and lower overall system cost for advanced display products. ImageProcessors replace several discrete components dramatically lowering costs and speeding time to market. Pixelworks ImageProcessors common display controller platform can be used with advanced display product including monitors, projectors and televisions using LCD, gas plasma and Digital Light Processing (DLP) technologies.

About IBM
IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. The IBM Technology Group, a major supplier of components to computer makers, has announced $30 billion in OEM deals in 1999. IBM is one of the world's largest manufacturers of hard drives, liquid crystal displays, tape storage systems and semiconductors. The fastest way to get more information about IBM is through the IBM home page at http://www.ibm.com.

About Pixelworks, Inc.
Pixelworks Inc., headquartered in Tualatin, Oregon, is a privately held fabless semiconductor company founded in 1997. The company introduced the world's first ImageProcessor in 1998. Pixelworks is one of Red Herring's "Ten to Watch" for 1999, a recognition of companies in the early stage of development that show promise of growing into global technology leaders. For more information about Pixelworks, call 503-612-6700 or visit the company's Web site at http://www.pixelworksinc.com.