Tualatin, Ore., February 7, 2000 — Pixelworks announced today that Sony Corporation (NYSE:SNE), the leading electronics company worldwide, selected its highly integrated ImageProcessor Architecture to deliver state-of-the-art video and computer performance in Sony's first widescreen, front-projection home theater system. The ImageProcessor Architecture from Pixelworks enables Sony's VPL-VW10HT system to display a rich variety of entertainment content.

The VPL-VW10HT widescreen projector uses Pixelworks' powerful "system-on-a-chip" ICs and embedded software to impress the most demanding home theater enthusiasts with unparalleled versatility, including HDTV, broadcast and cable television, DSS, VCRs, DVD players and high-resolution computer input including Internet, streaming media and computer games. The wide-format XGA-resolution (1,366x768 pixels) projector uses three 16:9 LCD panels to present a crisp image corner to corner.

Pixelworks ImageProcessors provide the VPL-VW10HT with the ability to view 4:3 images in their native format or resize them to fill the wide screen using a number of proprietary resizing techniques that make the content appear as if it was shot in the 16:9 aspect ratio with no distortion. For computer images, Pixelworks ImageProcessor Architecture handles computer data ranging from VGA to SXGA resolution.

"Broadband content dramatically increases the demands on a device to work with a wealth of entertainment options in different formats. Pixelworks' ImageProcessor technology gives Sony's customers complete confidence that the VPL-VW10HT will give them a beautiful picture regardless of the source," said Eiichi Sawada, Projection Department Manager at Sony Corporation Communication System Solutions Network Company.

Sony Brings ImageProcessors to Business Projectors

Sony also recently introduced two new models for the rapidly growing business presentation market. The VPL-PX20 and VPL-PX30 excel in the office environment by offering compelling features that make them suitable for installation in corporate conference rooms or as an impressive presentation tool for the mobile professional.

The XGA-resolution LCD projectors use Pixelworks' ImageProcessors to offer broad compatibility, with both computer and video sources, and plug-and-play ease of use. The two models handle input signals up to SXGA resolution (1,280x1,024 pixels) and are compatible with nearly every personal computer and video format. Pixelworks' automatic image optimization lets customers show a perfect image without any user adjustments regardless of source.

"Sony is highly regarded for its commitment to bringing cutting edge display technology to market. Pixelworks is proud to help Sony continue to develop breakthrough products," said Allen Alley, President and CEO of Pixelworks, Inc.

About ImageProcessor Architecture
Pixelworks ImageProcessors 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.

ImageProcessors 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 ImageProcessors' common display controller platform can be used with advanced display product including monitors, projectors and televisions.

About Pixelworks, Inc.
Pixelworks Inc., headquartered in Tualatin, Oregon, is a privately held fabless semiconductor company founded in 1997. The company introduced the world's first ImageProcessor in 1998. Pixelworks is one of Red Herring's "Ten to Watch" for 1999, a recognition of companies in the early stage of development that show promise of growing into global technology leaders. For more information about Pixelworks, call 503-612-6700 or visit the company's Web site at http://www.pixelworksinc.com.