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Silicon Image and Scalado Collaborate to Offer Accelerated High-Resolution Photo Rendering on Mobile Phones

Silicon Image, Inc. (NASDAQ:SIMG), a leader in semiconductors and intellectual property for the secure distribution, presentation and storage of high-definition content, and Scalado AB, a leader in mobile imaging software solutions for camera phones, announced that the companies have signed an agreement to integrate Scalado SpeedTags™ technology into the Silicon Image mobile phone camera processor IP (intellectual property) core product line. SpeedTags technology features a modified hardware JPEG encoder that allows high-resolution images to be processed and displayed more quickly than standard JPEG images, the popular format used for compressing still images.

The new Silicon Image camera processor IP core integrates Scalado’s SpeedTagged JPEG technology and the Scalado Camera Engine, which uses SpeedTagged JPEGs to provide high-performance camera functions such as zero shutter lag, instant viewing, zooming and panning, powerful burst-mode viewing, and quick SpeedView Meta Object (SPMO) generation for ultra-quick use of Scalado CAPS™ mobile imaging platform functions.

“We are pleased to be working with Silicon Image, one of the world’s leading camera processor IP core providers,” said Fadi Abbas, vice president of business development at Scalado AB. “Silicon Image’s hardware implementation of our mobile imaging technologies will provide handset manufacturers and original equipment manufacturers (OEMs) with superior imaging capturing and unrivalled viewing performance for photos displayed on mobile phones. As a result, the end user’s experience of mobile photography will reach a whole new level.”

The Silicon Image camera processor IP core supports 1, 3, 5, 8, 12 and 16 megapixel resolutions for a wide range of high-resolution imaging applications. Silicon Image’s camera processor design incorporates image signal processing, post processing and image compression in several efficient hardware blocks, and requires minimal software support.

“The collaboration between Silicon Image and Scalado offers vastly improved software processing compared to other software-based camera solutions,” said Ron Richter, director of IP licensing at Silicon Image, Inc. “With less than one million instructions per second (MIPS) to process each image, there is virtually no wait time for the display of pictures. This is a compelling and differentiating new feature for Silicon Image customers working on next generation mobile products.”

Scalado SpeedTags technology makes a minimal modification to the hardware JPEG encoder to enable the encoder to produce modified JPEG images, referred to as SpeedTagged JPEGs. SpeedTags allow images to be processed faster than normal JPEGs and are automatically removed as soon as the image has been processed. The modification requires an insignificant number of additional gates and minimal expense from a silicon perspective.

In addition to the SpeedTags and the Scalado Camera Engine technologies, Scalado licenses its world-leading mobile imaging platform, CAPS SDK, to top tier one handset manufacturers, hardware/software platform companies, and operators who want to offer their users a complete capture, view, edit and share user experience.

Silicon Image’s comprehensive IP product offering includes camera processor IP cores, HDMI™ transmitters and receivers, low-power HDMI and MHL mobile transmitters, Serial ATA link-transport digital RTL and analog PHYs, high-definition and standard definition video decoders (MPEG-2/4, H.264, VC-1), as well as various set-top-box (STB) and smart card IP cores. More information about Silicon Image’s IP product line can be found at http://www.siliconimage.com/iplicensing.

About Scalado AB

Scalado AB is a Swedish imaging Software Company that focuses on the wireless device industry. It provides mobile imaging software solutions that are powerful, scalable and modular for any camera phone. Its mission is to make imaging on mobile phones more efficient – bringing higher usability for end-users and cutting hardware costs for device manufacturers. With unique and patented software technologies, it is solving critical performance issues with less memory and CPU requirements. Founded in 2000, Scalado has its head office in IDEON Research Park in Lund, Sweden. The company’s principal shareholders are venture capitalists NorthCap Partners, Industrifonden, and Teknoseed as well as company’s founders. For more information, please visit www.scalado.com.

About Silicon Image, Inc.

Silicon Image, Inc. is a leading provider of semiconductor and intellectual property products for the secure distribution, presentation and storage of high-definition content. With a rich history of technology innovation that includes creating industry standards such as DVI and HDMI, the company’s solutions facilitate the use of digital content amongst consumer electronics, personal computer (PC) and storage devices, with the goal to securely deliver digital content anytime, anywhere and on any device. Founded in 1995, the company is headquartered in Sunnyvale, California, with regional engineering and sales offices in China, Germany, Japan, Korea, Taiwan and the United Kingdom. For more information, please visit www.siliconimage.com.

Forward-looking Statements

This news release contains forward-looking statements within the meaning of federal securities laws and regulations, including, but not limited to, statements regarding the features, functionality, costs and anticipated benefits of Scalado’s SpeedTags technology and Silicon Image’s camera processor IP cores. 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. Silicon Image assumes no obligation to update any forward-looking statement.

Silicon Image and the Silicon Image logo are trademarks, registered trademarks or service marks of Silicon Image, Inc. in the United States and/or other countries. HDMI is a trademark or registered trademark of HDMI Licensing, LLC in the United States and/or other countries. All other trademarks and registered trademarks are the property of their respective owners in the Unites States and/or other countries.

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