TUALATIN, Ore., Jul 14, 2003 (BUSINESS WIRE) -- Pixelworks, Inc. (Nasdaq:PXLW), a leading provider of system-on-a-chip ICs for the advanced display market, announced today that Samsung selected the PW565 Video ImageProcessor IC for a new line of high performance LCD televisions, starting with the recently introduced 17N2 17-inch LCD television. The high-performance PW565 Video ImageProcessor chip takes system-on-chip (SOC) integration to a new level with dual deinterlacing and scaling to support two video or PC sources simultaneously with no compromises in image quality.

The PW565, the industry's first video SOC capable of deinterlacing 1080i HDTV signals, is a highly integrated "system-on-chip" IC that interfaces graphics, video, and HD inputs in virtually any format to any pixel-based or CRT display. Video images in NTSC, PAL, SECAM and ATSC formats as well as PC images at virtually any refresh rate can be resized to fit on a target display device with any resolution up to WXGA. Two configurable DSP filter cores provide state-of-the-art image quality for graphics, video, and HD inputs.

Samsung's 17N2 LCD television targets the rapidly growing 17-inch LCD television segment with a WXGA-resolution wide-screen LCD optimized for high-definition television. The 17N2 relies on Pixelworks technology to process and resize diverse digital signals, including 720p and 1080i high-definition digital television formats, so they look flawless on the 1280-by-768 resolution LCD panel. In addition, Pixelworks Intelligent Windowing with dual deinterlacers ensures that consumers enjoy stunning images in split-screen and picture-in-picture modes.

"To offer our customers a true HDTV experience, we looked for technology that could make our next generation of LCD televisions compatible with the wide array of sources and formats," said Hyun Suk Kim, Vice President of R&D Team, LCD TV Group, Visual Display Division at Samsung Electronics. "Pixelworks offers the right choice by integrating high-performance into a cost-effective IC that raises the bar in the mainstream 17-inch WXGA LCD television market."

"Pixelworks' PW565 is a remarkable IC that allowed us to take our LCD televisions farther with 1080i deinterlacing, high quality sharpness filters, adaptive color adjustments and the ability to simultaneously display two sources without compromising the video quality in either window. With its performance and features, the 17N2 is the flagship product in the 17-inch LCD television category," said Jae Hak Cho, Engineering Project Manager, LCD TV Group, Visual Display Division, Samsung Electronics.

"Samsung is asserting its global brand as a technology leader to show it will be as strong in the LCD television market as it has proven to be in the LCD monitor market," said Allen Alley, President, CEO and Chairman of Pixelworks, Inc. "The PW565 sets the standard for HDTV image processing and is an ideal match for Samsung's exciting new line of LCD TVs."

Pixelworks Digital TV Solutions are the driving force behind the outstanding picture quality and innovative features required by the next generation of LCD, PDP, and digital CRT televisions. Pixelworks Digital TV Solutions deliver outstanding standard and HDTV picture quality with intelligent aspect ratio conversion for 4:3 and 16:9 format displays. Customizable video performance enhancements include adaptive black level expansion which detects dark and light video frames and automatically makes image adjustments to reveal the most detail in the scene. The PW565 also features motion adaptive deinterlacing, film mode detection, PixelBoost and Intelligent Windowing. These speed the development of differentiated digital television product lines with the features and life-like picture quality that your customers want.

The PW565 Video ImageProcessor is currently in production. To learn more about the PW565, contact the Pixelworks sales office in your region. A list of contacts is available at www.pixelworks.com/contact.

About Pixelworks, Inc.

Pixelworks, headquartered in Tualatin, Oregon, is a leading provider of system-on- chip ICs for the advanced display industry. Pixelworks' solutions process and optimize video, computer graphics and Web information for display on a wide variety of devices including flat-panel monitors, digital televisions and multimedia projectors used in business and consumer markets. Our broad IC product line is used by the world's leading manufacturers of consumer electronics and computer display products to enhance image quality and ease of use. 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.

SOURCE: Pixelworks, Inc.

Pixelworks, Inc.
Media Inquiries:
Chris Bright, 503-454-1770
cbright@pixelworks.com
or
Investor Inquiries
Jeff Bouchard, 503-454-1750 ext. 604
jeffb@pixelworks.com
Web site: www.pixelworks.com

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