China Video Industry Association Agrees to Promote and Support HDMI(TM), Will Develop HDMI Technology With Silicon Image China Digital Interface Industry Alliance (CDIA) Formed; New HDMI(TM) and

Simplay HD(TM) Testing Centers Established in China



    BEIJING and SUNNYVALE, Calif., July 20 /PRNewswire-FirstCall/ --
 Silicon Image, Inc. (Nasdaq:   SIMG), a leader in semiconductors for the
 secure storage, distribution and presentation of high-definition content,
 today announced a landmark agreement with the China Video Industry
 Association (CVIA) under which CVIA will promote and support the use of
 High-Definition Multimedia Interface(TM) (HDMI(TM)) by the consumer
 electronics industry in China. The agreement with CVIA positions China to
 play a major role developing next-generation digital consumer electronics
 technology.
     As part of the agreement, Silicon Image and CVIA have agreed to work
 together to promote HDMI adoption among domestic Chinese electronics
 manufacturers, co-develop new technology applicable to HDMI, and
 collaborate on establishing testing and interoperability certification labs
 that complement the capabilities of the HDMI Authorized Testing Centers
 established by Silicon Image.
     In addition, Silicon Image will support the China Digital Interface
 Industry Alliance (CDIA), an industry alliance consisting of major Chinese
 electronics manufacturers that CVIA is establishing. CDIA will work to
 promote the use of HDMI in consumer electronic products, promote
 communications among manufacturers in China and abroad, and strengthen
 coordination between hardware manufacturers and content providers.
     In a related announcement, HDMI Licensing, LLC, today announced a
 global reduction in the annual administration fee charged to HDMI adopters.
 The fee reduction was made possible by HDMI's growing success in the
 marketplace; more than 400 makers of consumer electronics and PC products
 worldwide have adopted HDMI, including 82 companies in China.
     Based in Beijing, the China Video Industry Association (CVIA) is
 China's industry association for manufacturers of digital television,
 digital movie/broadcasting, high definition optical disc, set-top box and
 information technology equipment and components, and is focused on
 promoting China's digital consumer electronics industry.
     In 2005, China manufactured 82 million televisions and 140 million DVD
 or VCD players, according to CVIA. Sales of plasma and LCD TVs are forecast
 to grow 105 percent this year to $5.5 billion, and are estimated to reach
 $10.5 billion in 2008, according to IDC.
     "Today China is taking a major step forward in promoting the
 development of its digital consumer electronics industry," said Bai Weimin,
 director of the Department of Broadcasting and Television, Ministry of
 Information Industry. "CVIA's agreement to partner with Silicon Image to
 develop new digital interface technology will further the development of
 China's electronics manufacturers as leaders in creating advanced digital
 technologies."
     "Under this agreement, China's companies will not only embrace the
 global HDMI standard but will partner with Silicon Image to participate in
 future technology development for HDMI," said Hao Yabin, vice
 secretary-general of the China Video Industry Association. "This agreement
 will help China develop its own intellectual property, protect the
 interests of China's digital consumer electronics industry, and improve the
 cooperation and mutual benefit of the domestic and international high
 definition technology industries."
     "Silicon Image will work closely with China's digital consumer
 electronics industry to help create innovative, cutting edge products and
 technologies," said Steve Tirado, president and CEO of Silicon Image. "This
 agreement represents an important expansion of the HDMI standard into the
 world's largest consumer market, and strongly re-affirms HDMI as the
 worldwide standard for high-definition digital devices."
     New Testing Labs
     As part of the agreement, Silicon Image and CVIA will cooperate in
 establishing testing and interoperability certification labs (see
 accompanying press release, "Silicon Image Expands HDMI and Simplay HD
 Testing in China"). Silicon Image will continue to operate HDMI(TM)
 Authorized Testing Centers (ATCs) and Simplay HD(TM) Testing Centers in
 China. In addition, Silicon Image, through its wholly-owned subsidiary,
 Simplay Labs, LLC, and CVIA will work together to establish testing and
 interoperability certification labs that complement the capabilities of the
 HDMI ATCs.
     Silicon Image today also announced the opening of China's second
 combined HDMI ATC / Simplay HD Testing Center in Shanghai, and with the
 support of CVIA plans to open a third such facility in China at a location
 to be determined.
     The Simplay HDTM Testing Program consists of branding, compatibility
 testing, and education for consumers to provide them with a consistent
 "plug and play" user experience and to maximize their access to premium
 high definition (HD) content.
     About Silicon Image, Inc.
     Headquartered in Sunnyvale, Calif., Silicon Image, Inc. is a leader in
 driving the architecture and semiconductor implementations for the secure
 storage, distribution and presentation of high-definition content in the
 consumer electronics and personal computing markets. Silicon Image creates
 and drives industry standards for digital content delivery such as DVI,
 HDMI(TM) and UDI, leveraging partnerships with global leaders in the
 consumer electronics and personal computing markets to meet the growing
 digital content needs of consumers worldwide. The Simplay HD(TM) Testing
 Program administered by Silicon Image's wholly-owned subsidiary, Simplay
 Labs, LLC, provides compatibility testing for high definition consumer
 electronics devices such as HDTVs, set-top boxes, audio/video receivers and
 DVD players, helping manufacturers to achieve compatibility and deliver the
 highest-quality HDTV experience to consumers. Silicon Image is also one of
 the top ten semiconductor IP licensing vendors in the world. For more
 information, please visit www.siliconimage.com.
     Forward-looking Statements
     This news release contains forward-looking information within the
 meaning of federal securities regulations. These forward-looking statements
 include statements related to the proposed plans for collaboration between
 CVIA and Silicon Image in promoting the adoption of the HDMI(TM) standard
 among Chinese electronics manufacturers and in co-developing new technology
 applicable to the HDMI standard, including plans for the formation of the
 China Digital Interface Industry Alliance, and the establishment of new
 testing and interoperability certification facilities in China, the
 anticipated benefits of such collaboration and facilities, the anticipated
 market acceptance of the HDMI standard and the anticipated market growth
 and consumer demand for HDMI- compatible products, consumer electronics and
 personal computing products in China and worldwide, the role of Silicon
 Image and CVIA in promoting and meeting such anticipated market growth and
 consumer demand, and the benefits, performance and features of the Simplay
 HD(TM) Testing Program. These forward- looking statements involve risks and
 uncertainties, including those described from time to time in Silicon
 Image's filings with the Securities and Exchange Commission (SEC) that
 could cause the actual results to differ materially from those anticipated
 by these forward-looking statements. In particular, the proposed plans for
 collaboration between CVIA and Silicon Image in promoting the adoption of
 the HDMI standard among Chinese electronics manufacturers and in
 co-developing new technology applicable to the HDMI standard, including
 plans for the formation of the China Digital Interface Industry Alliance,
 and the establishment of new testing and interoperability certification
 facilities in China, the anticipated benefits of such collaboration and
 facilities, the anticipated market acceptance of the HDMI standard and the
 anticipated market growth and consumer demand for HDMI-compatible products,
 consumer electronics and personal computing products in China and
 worldwide, the role of Silicon Image and CVIA in promoting and meeting such
 anticipated market growth and consumer demand, and the benefits,
 performance and features of the Simplay HD Testing Program may differ
 materially from what is currently anticipated. In addition, see the Risk
 Factors section of the most recent Form 10-K or Form 10-Q filed by Silicon
 Image with the SEC. Silicon Image assumes no obligation to update any
 forward-looking information contained in this press release.
 
 

SOURCE Silicon Image, Inc.

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