Samsung and LG Select Silicon Image as Preferred HDMI Supplier for 2005 Consumer Electronics Models

SUNNYVALE, Calif., January 20, 2005 - Silicon Image, Inc. (Nasdaq: SIMG), a leader in multi-gigabit semiconductor solutions for the secure transmission and storage of rich digital media, today announced that LG Electronics and Samsung Electronics have both selected Silicon Image as their preferred High-Definition Multimedia Interface™ (HDMI™) supplier for their 2005 consumer electronics product lines.  The supplier agreements span Silicon Image's PanelLink® HDMI transmitter and receiver ICs, which will be designed into 2005 models of DVD players, set-top boxes (STBs), digital video recorders (DVRs), A/V receivers and digital TVs (DTVs) offering HDMI functionality from both manufacturers.

"HDMI has quickly become a checklist item for DTVs and high-end source devices.  Samsung and LG are members of our PanelLink Cinema™ Partners Program, and these supplier agreements further demonstrate their commitment to adopting HDMI across their product lineups and offering their customers the highest quality HDMI-HDCP technology available today.  In addition, these agreements affirm Silicon Image's position as the leading HDMI supplier to the top consumer electronics manufacturers in the world, who are rapidly embracing HDMI," stated Rob Valiton, Silicon Image vice president of worldwide sales. 

HDMI is being adopted most rapidly in the DTV market, which is projected to grow from 21.4 million units worldwide in 2004 to 83 million units worldwide in 2007 according to IDC.  Approximately 80 percent of the DTV models shipped to the U.S. market in 2003 featured a DVI connector, and HDMI DTVs are projected to out-ship DVI models by the end of 2004.  According to IDC, Samsung is the second largest supplier of LCD TVs worldwide, a market that will grow from 7.7 million units in 2004 to 34.4 million units in 2007.  IDC also noted that Samsung and LG together supplied nearly 24 percent of the world's 1.41 million LCD TVs shipped in Q1 2004.

"HDMI with HDCP enables us to provide our customers access to the newest digital content and services available in the digital age, and we are committed to adopting HDMI across our lineup of DVD players and DTVs, said Dr. Choon Lee, VP, Digital TV Laboratory at LG Electronics.  "Silicon Image is the recognized leader in HDMI technology, and their proven HDMI solutions include HDCP functionality that will enable our customers to view premium digital content." 

"Samsung is committed to offering our customers the highest quality, all-digital audio visual experience with HDMI technology, and we are aggressively outfitting our DTV and DVD player product lines with HDMI-HDCP capability," stated Mr. CW Hong, VP of Visual Display Division at Samsung.  "As an HDMI founder and the first supplier of production HDMI silicon, Silicon Image has a proven track record of HDMI quality and reliability.  Silicon Image's PanelLink HDMI ICs incorporate HDCP content protection, which helps future-proof our customers' equipment purchases."

The FCC has mandated that all Digital Cable-Ready TVs sold after July 1, 2005 feature an HDMI-HDCP or a DVI-HDCP input.  In addition, the DVD Copy Control Association requires that all DVD players playing CSS-protected content at resolutions higher than 480p/576p have an HDMI-HDCP or a DVI-HDCP output.  Cable industry association CableLabs also requires that all OpenCable HD STBs must have HDMI-HDCP or DVI-HDCP outputs, and satellite operators DIRECTV and EchoStar require HDMI-HDCP or DVI-HDCP on all HD STBs.

Samsung and LG are charter members of Silicon Image's PanelLink Cinema Partners Program, which provides consumers with a simple means of identifying High-Definition (HD) TVs and other consumer electronics devices capable of receiving and playing the most valuable digital content.  LG and Samsung are committed to HDMI interoperability and are submitting products to the PanelLink Cinema Test Center for testing of HDCP functionality and interoperability with HDMI/HDCP devices from other manufacturers. 

About Silicon Image
Headquartered in Sunnyvale, Calif., Silicon Image, Inc. designs, develops and markets multi-gigabit semiconductor and system solutions for a variety of communications applications demanding high-bandwidth capability.  With its proprietary Multi-layer Serial Link (MSL™) architecture, Silicon Image is well positioned for leadership in multiple mass markets including PCs, consumer electronics and storage.  Currently, Silicon Image leads the global PC/display arena with its innovative digital interconnect technology, and has emerged as a leading player in the consumer electronics and storage markets-offering robust, high-bandwidth semiconductors.  For more information on Silicon Image, visit www.siliconimage.com

This news release contains forward-looking information within the meaning of federal securities regulations.  These forward-looking statements include statements related to (i) anticipated use of Silicon Image's HDMI products in products manufactured by Samsung and LG, (ii) anticipated growth of the DTV and LCD TV markets, and (iii) anticipated rates of adoption of the HDMI standard in the consumer electronics market, including in particular in the DTV and LCD TV markets.  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 use of Silicon Image's HDMI products in products manufactured by Samsung and LG, the growth of the DTV and LCD TV markets, and the rate of adoption of the HDMI standard in the consumer electronics market, including in particular in the DTV and LCD TV markets, may differ materially from what is currently anticipated.  Also see "Management's Discussion and Analysis of Financial Condition and Results of Operations-Factors Affecting Future Results" in the most recent Annual Report, Form 10-K or 10-Q filed by Silicon Image with the SEC.  Silicon Image assumes no obligation to update this forward-looking information.

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