Camas, Wash. and Tualatin, Ore., August 13, 2001 — Sharp Microelectronics of the Americas (SMA), a U.S.-based division of Sharp Electronics Corporation, and Pixelworks, Inc., the leading provider of system-on-a-chip ICs for the advanced display market (Nasdaq:PXLW), jointly announced today that Compaq Computer Corporation (NYSE:CPQ) is now shipping the first flat panel desktop monitor utilizing Sharp's innovative All-in-One integrated LCD display module powered by Pixelworks' ImageProcessor Architecture. The high-performance Compaq TFT5030 monitor is one of the first desktop monitors available in the United States that uses Sharp All-in-One technology, ushering in a new era of streamlined manufacturing for flat panel displays.

Using the latest technology from Sharp and Pixelworks, the 15-inch, XGA-resolution Compaq TFT5030 monitor delivers industry leading image quality and ease of use features that make it the best flat panel display in its class. The Sharp All-in-One TFT-LCD integrates the Pixelworks PW112 ImageProcessor IC, interface electronics and the inverter to drive the backlight directly on to the LCD module.

The LCD from Sharp with ASV (Advanced Super View) technology provides a 170-degree symmetrical viewing angle, a 400:1 contrast ratio, high brightness at 300 nits, 25 millisecond response times for full-motion video and the total elimination of bright pixel defects. Pixelworks' PW112 ImageProcessor IC contributes ease of use including the unique Fail-Safe™ recovery mode, award-winning scaling and automatic image optimization, digital and analog interface compatibility, and a unique, intuitive on-screen display (OSD).

Sharp's All-in-One LCD modules enabled Compaq to streamline monitor product development by reducing the number of circuit boards used in the monitor, lowering assembly costs and minimizing the integration challenges caused by sourcing and integrating an array of individual components from different vendors. The Sharp All-in-One reduces development logistics and conserves technical resources by providing a complete LCD module with integrated display electronics that is optimized for best of class on-screen performance. Compaq used Pixelworks' Windows®-based software development tools to fine tune performance and create a unique user interface.

“We're excited about how customers will embrace the Compaq TFT5030 monitor with its outstanding front-of-screen performance, intuitive ease of use and sleek, modern design,” said Rick Roesler, Director of Displays and Imaging, Access Business Group at Compaq. “The Sharp All-in-One panelfrom Sharp incorporating Pixelworks' technology enables the new Compaq TFT5030 monitor to deliver top-of-the-line price/performance.”"

“Sharp has responded to the needs of customers like Compaq to speed time-to-market, reduce development costs, and simplify logistics,” said Joel Pollack, Vice President, Display Business Unit, at Sharp Microelectronics of the Americas. “We are pleased to partner with Pixelworks to incorporate their complete software suite into the Sharp All-in-One module. We believe this integrated TFT LCD will prove itself very popular.”

“We are excited to team with Compaq and Sharp on the TFT-5030 monitor. This beautiful monitor represents the state-of-the-art in display performance, LCD technology and advanced manufacturing and product development processes,” said Allen Alley, CEO, President and Chairman of Pixelworks. “We are proud of our role in developing the TFT5030 desktop monitor which is the latest in a series of award winning Compaq LCD monitors and projectors powered by Pixelworks."

To learn more about the Compaq TFT5030 Flat Panel Monitor, visit: http://www.compaq.com/products/monitors/index.shtml.

About Sharp Microelectronics of the Americas
Sharp Microelectronics of the Americas (SMA), Camas, Washington, is a U.S.-based company and a division of Sharp Electronics Corporation which is a subsidiary of Sharp Corporation, Osaka, Japan. Sharp is a worldwide developer of core digital technologies that are playing an integral role in shaping the next generation of electronic products for consumer and business needs. SMA offers breakthrough memory, LCD, opto, CCD, RF/IR, microcomputer and system-on-chip components, along with packaging and integration skills that help design engineers throughout North and South America bring their ambitious ideas to market. SMA is dedicated to improving people's lives through the use of advanced technology and a commitment to innovation, quality, value and design. For further information, please visit the Company's Web site at http://www.sharpsma.com.

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. Pixelworks ImageProcessor Architecture powers the world's most highly regarded flat panel display products, including monitors and projectors marketed by Compaq, Dell, NEC-Mitsubishi, Samsung, SANYO, Sony and ViewSonic. For more information, please visit the company's Web site at www.pixelworks.com.