TUALATIN, Ore.--(BUSINESS WIRE)--Jan. 9, 2009--Pixelworks, Inc. (NASDAQ:PXLW), an innovative provider of powerful video and pixel processing technology, announced today that its continued cooperation and collaboration with Optoma Technology Inc. has enabled many innovative new features in Optoma's new HD8200 Multimedia DLP Projector. The HD8200 is powered by Pixelworks' PW9800 co-processor with DNX^(R) MotionEngine(TM) technology, which delivers next-generation video processing performance and smooth playback to redefine the home theater viewing experience.

Optoma is a leading and award-winning manufacturer of digital display products and home entertainment projectors for consumer, business, education, professional audio/video (Pro AV) and custom installation applications.

"Delivering the highest video quality was the key driving force for our new HD8200 DLP Multimedia projector," said Jon Grodem, Optoma's director of product and marketing. "Pixelworks' PW9800 co-processor offered the best video enhancement and frame interpolation available, resulting in significant improvements in the viewing experience for BD/DVD playback in a home theater environment. The programmability of the chip, and Pixelworks' exceptional support, were also instrumental in allowing us to meet our requirements for the HD8200 in a cost effective way."

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. The technology eliminates motion artifacts in high-resolution digital video content, often referred to as "judder," to ensure smooth playback.

"Pixelworks is pleased to continue our long-term partnership with Optoma, and we are excited that this collaboration has resulted in the first DLP projector to deliver our DNX MotionEngine technology into the marketplace," said Anthony Simon, Pixelworks' vice president of marketing. "The HD8200 reinforces Optoma's reputation for superb product performance and sets a new benchmark for the home theater viewing experience."

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 Optoma Technology, Inc.

Optoma Technology, Inc., is an award-winning developer of projection and digital display products for business and home. The company manufactures multimedia projectors for mobile users, fixed installations and home theaters, as well as HD displays. Optoma products combine superior image processing technologies with exceptional engineering and innovation to deliver images that are bright, crystal clear, and finely tuned for tone and color. Optoma products are sold through the company's global network of pro AV dealers, major consumer electronics retailers and Internet resellers. For more information, visit www.optomausa.com.

DNX(R) and MotionEngine(TM) are trademarks or registered 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.