Tualatin, Ore., June 15, 2000 — Pixelworks (Nasdaq:PXLW) announced today that Samsung, the world's number one display manufacturer, selected Pixelworks' award-winning ImageProcessor Architecture to power a new line of convergence monitors, including the world's first flat panel monitor-television combination. The three new additions to Samsung's stylish SyncMaster series of flat panel monitors utilize highly integrated ImageProcessor ICs to bring both high-quality video and computer images to the desktop.

The advanced features provided by Pixelworks ImageProcessor Architecture enables Samsung to offer new levels of monitor flexibility and image quality. The line of monitors use ImageProcessor ICs coupled with Samsung's Wiseview™ TFT-LCD panels to deliver unsurpassed image quality, video and computer compatibility, ease of use and a rich feature set including picture-in-picture (PIP) and pinpoint zooming that magnifies any part of the screen up to 64 times.

These innovative combination television-monitors have been received enthusiastically by the editorial community including earning a CNET Editors' Choice and being named to Winmag.com's WinList. These LCD TV-monitors have gained widespread notice with favorable articles in mainstream publications such as New York Times, Fortune, Time, PC Magazine and Wired.

The TFT LCD Samsung models featuring built-in television tuners include the SyncMaster 150MP and SyncMaster 170MP. The 150MP is a 15-inch, XGA resolution (1024x768) monitor and the 170MP is a 17-inch, SXGA resolution (1280x1024) monitor. The revolutionary monitors receive RF and cable television signals and support all of the global broadcast standards, including NTSC and PAL/SECAM video formats. Customers have the ability to watch television or video on the entire screen or in picture-in-picture mode using a scaleable "window." In addition, the SyncMaster 570P Plus utilizes the ImageProcessor Architecture to provide an affordable, XGA-resolution flat panel display capable of handling computer and NTSC Composite and S-Video inputs.

"Pixelworks' highly integrated ImageProcessor Architecture helped Samsung to implement advanced designs across several platforms both quickly and cost effectively. Pixelworks ImageProcessors provide our monitors with the flexibility to offer video and computer graphics on the screen simultaneously which we are finding is winning accolades in the press and very popular among consumers," said Bob Eminian, Vice President of Marketing and Corporate Communications at Samsung Semiconductor, Inc. in San Jose, Calif.

"These innovative Samsung displays make it possible to conveniently use computer applications, access the Web, view video and television all on the same monitor at work or at home. We are excited to work with Samsung's advanced display technologies to develop groundbreaking products that allow broadband content to flow freely to the desktop. We look forward to working with Samsung on future products," said Allen Alley, President, CEO and Chairman of Pixelworks.

About ImageProcessor Architecture
Pixelworks ImageProcessor ICs are a significant enabling technology driving the broad adoption of advanced display products. Pixelworks ImageProcessors "system-on-a-chip" integrated circuits (ICs) are the world's first and only single-chip display controllers. Pixelworks ImageProcessors earned the distinguished 1999 SID Information Display Magazine Display Material or Component of the Year Gold Award, the top annual recognition in the electronic display industry.

ImageProcessor ICs from Pixelworks are creating new benchmarks in image quality, broad compatibility, effortless ease of use and lower overall system cost for advanced display products. ImageProcessors replace several discrete components dramatically lowering costs and speeding time to market. Pixelworks ImageProcessor ICs common display controller platform can be used with advanced display product including monitors, projectors and televisions using LCD, gas plasma and Digital Light Processing (DLP) technologies.

About Samsung Semiconductor
Samsung Semiconductor, Inc. is a wholly-owned subsidiary of Korean-based Samsung Electronics. Samsung's semiconductor division is the fourth-largest semiconductor manufacturer, and the leading producer of memory and TFT-LCD products in the world. Samsung was first to market with 64Mb, 128Mb and 256Mb high-density DRAM, and supports all leading technologies such as Rambus, DDR and PC-133/PC-100 SDRAM. Samsung was first with working silicon for the 1-Gigabit DRAM, delivering samples to major OEMs in 1998. Samsung offers stacking memory solutions using Staktek's stacking technology, which is Samsung's stacking technology of choice. Samsung was also the first to announce working merged DRAM and logic technology, and currently claims the largest applications portfolio of MDL-based products. Samsung Semiconductor's North American headquarters are located in San Jose, California. For more information, please visit our website: www.usa.samsungsemi.com.

About Pixelworks, Inc.
Pixelworks, headquartered in Tualatin, Oregon, designs, develops and markets system-on-a-chip semiconductors and software that enable the visual display of broadband content through a wide variety of electronic devices. 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. For more information, please visit the company's Web site at www.pixelworks.com.