TUALATIN, Ore.--(BUSINESS WIRE)--Jan. 9, 2009--Pixelworks, Inc. (NASDAQ:PXLW), an innovative provider of powerful video and pixel processing technology, announced today that China's Haier Group has selected Pixelworks' PW9800 co-processor with DNX^(R) MotionEngine(TM) technology for their newest LCD TVs, the 42" LF42T1 and the 47" LF47T1. Haier is a leading force in HDTV and is known for its innovative and high-quality products for the consumer market.

"Consumers' expectations continue to rise for the video quality on LCD TVs; clarity of moving objects, smoothness of playback and color representation are extremely important criteria," said Mr. Chao Liu, director of Haier's Information Products Division, R&D Department. "Pixelworks' DNX MotionEngine technology provides superior performance in reducing motion artifacts such as blur and judder, which helps deliver a viewing experience that differentiates our new TVs from those of our competitors. Additionally, the PW9800's built-in video enhancement capability for 120Hz LCD TVs enables us to better meet customers' expectations for color, sharpness and overall picture quality."

Pixelworks' DNX MotionEngine technology incorporated in the PW9800 chip uses proprietary MEMC (Motion Estimation and Motion Compensation) algorithms to significantly enhance the quality of the video delivered to large high-end LCD TVs, advanced projectors and other display products requiring 120Hz support. Primary benefits include the elimination of motion artifacts in high-resolution digital video content, often referred to as "judder" and "blur," to ensure smooth playback.

"Customers around the world are demanding better video quality and performance. Pixelworks is pleased to have worked closely with Haier to help them provide significant product differentiation in China and their other world markets through the use of our DNX MotionEngine technology," stated Hongmin (Bob) Zhang, Pixelworks' vice president, technology and chief technology officer. "As TV manufacturers shift more of their products to 100/120Hz LCD panels, Pixelworks' PW9800 co-processor is a compelling solution for superior motion compensation, at a very competitive price."

About Pixelworks, Inc.

Pixelworks, headquartered in Tualatin, Oregon, is an innovative designer, developer and marketer of video and pixel processing semiconductors and software for high-end digital video applications. At design centers in Shanghai, China, and San Jose, California, Pixelworks engineers push pixel performance to new levels for leading manufacturers of consumer electronics and professional displays worldwide. For more information, please visit the company's Web site at www.pixelworks.com.

About Haier Group

Haier Group, headquartered in Qingdao, China, is China's leading company in home appliances. It currently manufactures a wide range of household electrical appliances and exports products to more than 100 countries. Haier has been widely recognized as a leader of nine products in terms of domestic market share and as the third largest provider of three products in the world market. Haier has long attached significance to innovation in satisfying the demands of worldwide consumers and realizing win-win performance between Haier and their clients. For more information, please visit the company's Web site at www.haier.com.

DNX(R) and MotionEngine(TM) are trademarks of Pixelworks, Inc. All other trademarks are the property of their respective owners.

    CONTACT: Pixelworks, Inc.
             Steven Moore, 408-200-9221
             smoore@pixelworks.com

    Source: Pixelworks, Inc.