TUALATIN, Ore.--(BUSINESS WIRE)--April 24, 2008--Pixelworks, Inc. (NASDAQ:PXLW), an innovative provider of powerful video and pixel processing technology, today announced its recent collaboration with leading digital projection system manufacturer Optoma Technology, Inc. to develop the Optoma HD80 1080p home theater projector. Pixelworks' proprietary advanced image processing and DNX(TM) image quality tuning technology enabled Optoma to rapidly bring to market its HD80 full HD projector, offering studio-grade resolution at a competitive price.

"Pixelworks more than met our expectations for high quality and reduced time-to-market - both critical advantages in a market as dynamic and competitive as home theater projection," said TI Lin, CTO of Optoma Technology. "The combination of Pixelworks' technology, technical support and Optoma's unique color fine tuning technology enabled us to deliver our innovative new projector quickly, cost effectively, and with superior performance."

Optoma selected Pixelworks' Pearl line of image processor ICs and software to control the operations and signal processing of its HD80 high-end projection system. In addition to the industry's most effective video enhancement technology, Pixelworks' ICs also provided Optoma with color enhancement, as well as advanced scaling and de-interlacing to smooth artifacts caused by projecting lower resolution images on newer high resolution displays. The result is excellent performance in contrast, black level, sharpness, and color to ensure a riveting home theater experience.

"Our partnership with Optoma, a global force within the display market, thoroughly exemplifies what a close collaboration between a semiconductor company and a manufacturer can produce: innovative products incorporating cutting edge technology," said Anthony Simon, Vice President Marketing and Sales of Pixelworks. "Pixelworks pioneered image enhancement for the projection industry and we continue to invest in the technology, tools and talent to help our customers develop products with superior image quality."

About Pixelworks, Inc.

Pixelworks, headquartered in Tualatin, Oregon, is an innovative designer, developer and marketer of video and pixel processing technology semiconductors and software for high-end digital video applications. At design centers in Shanghai and San Jose, 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

DNX is a trademark 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.