Silicon Image Acquires sci-worx, Strengthening its IP Portfolio, Engineering Resources and System-on-a-chip Design Capabilities

SUNNYVALE, Calif. — Silicon Image, Inc. (NASDAQ: SIMG), a leader in semiconductors for the secure storage, distribution and presentation of high-definition content, today announced its acquisition of sci-worx GmbH (“sci-worx”), a leading intellectual property (IP) and design service provider specializing in multimedia, communications, and networking applications. The acquisition of sci-worx is expected to enhance and accelerate the expansion of Silicon Image’s system-on-a-chip (SoC) design capabilities for the storage, distribution and presentation of high-definition (HD) content in the consumer environment.

Founded in 1990 as Sican, sci-worx owns 18 registered and pending patents. The company has core competencies in and derives revenues from more than 50 IP products in the area of video/image processing, wireline communications, security and bus interfaces. sci-worx has approximately 172 employees, more than 80 percent of whom are engineers. sci-worx’ customers include top-tier manufacturers and component makers in the consumer electronics and communications markets. Silicon Image will continue to support the current sci-worx customer base and will enhance its overall IP programs to include products and services from both companies.

Prior to the acquisition, which was completed on Jan. 3, 2007, sci-worx was a wholly-owned subsidiary of Infineon Technologies AG. Silicon Image paid approximately $13.5 million for sci-worx (including sci-worx’ net debt) in an all-cash transaction.

“We are excited to acquire an intellectual property company that provides us with key IP and gives us a stable and highly-skilled engineering talent pool to advance our chip integration plans for the storage, distribution and presentation of HD content in the consumer environment,” said Steve Tirado, president and CEO of Silicon Image. “This acquisition enhances our ability to provide our top-tier consumer electronics customers with a full-line of ICs, from our industry-leading HDMI chips to our new front-end input processors to next generation fully-integrated storage, networking and DTV SoC products, and furthers our goal of enabling the secure connected HD home and personal domain.”