Silicon Image™, Inc. (NASDAQ:SIMG), a leader in semiconductors and intellectual property for the secure distribution, presentation and storage of high-definition content, today introduced LiquidHD™, a new personal entertainment technology designed to quickly and easily connect TVs, consumer electronics (CE) devices, personal computers (PCs), portable media devices (PMDs) and home theaters into a seamless network where consumers can enjoy digital content from any source device on any LiquidHD-enabled display in the home.

Today, consumers can only enjoy their multi-media content on the TV to which the digital video recorder (DVR), set-top box (STB), DVD/Blu-ray Disc™ player or game console is directly connected. With LiquidHD technology consumers can flexibly enjoy their content throughout their home by pausing a movie, television program or video game on the TV in the living room and then resume it on a different TV or laptop with a single press of a button on the remote control.

"LiquidHD technology is poised to deliver the consumer electronics network for whole home HD distribution," said Brian O'Rourke, principal analyst at In-Stat. "Silicon Image has addressed the problems facing home CE networking by adding the intelligence to CE devices so they can automatically discover each other and securely share media content over commodity IP networking gear. The LiquidPixels remote user interface technology in LiquidHD is an important solution for set top boxes, Blu-ray players, DVD players and other sources to project their user interface to the TVs on the consumer electronics network in the home."

“With the fast changing home networking marketplace, we are looking at emerging technologies like LiquidHD to provide for our customers a rich and flexible entertainment environment that leverages our already successful broadcast and on-demand content to be distributed within the home,” said Bill Warga, vice president of technology at Liberty Global Inc.

“Silicon Image’s technology comes at the right time as the number of TVs and other consumer-facing devices capable of receiving video over an IP network continues to grow,” said Tony Werner, chief technology officer at Comcast. “While Silicon Image's technology could be used to enable multi-room DVRs, its real benefit could be its ability to help get cable providers’ content and applications to multiple consumer devices.”

LiquidHD technology is a suite of protocols that runs over commodity IP networks such as Ethernet, Coax like MoCA, powerline like HomePlug and wireless like WiFi (802.11n). Key components of the LiquidHD technology include:

• LiquidDiscover: Automatic discovery and authentication of all LiquidHD-enabled devices in the home - just plug it in and the TV automatically discovers your LiquidHD source devices;
• LiquidMedia: High-definition, high-fidelity media streaming from live and stored sources;
• LiquidPixels: Pixel accurate, low latency and low bandwidth remoting of any source device’s user interface to any LiquidHD display device. Includes a single remote control at each display to control all source devices on the LiquidHD network;
• LiquidControl: Secure control and communication between all devices;
• LiquidPlay™: Comprehensive security and content protection architecture built on a robust hardware solution. Enables consumers to move and play their legally obtained content on any LiquidHD device they own. Also protects CE devices from malevolent attacks by securing the control commands and LiquidPixels remote user interface.

“LiquidHD technology is the natural next step to the HDMI™ standard and is likewise designed from the ground up for easy, low cost integration into every TV and CE device,” said Steve Tirado, president and chief executive officer at Silicon Image, Inc. “LiquidHD’s rich networking support incorporated in every TV will lead to significant simplification and enrichment of the user entertainment experience in addition to a reduction in cost to service providers.”

LiquidHD technology is also energy efficient in that it allows all LiquidHD-enabled devices to revert to very low power standby mode when not in active operation. Once the consumer is ready to use a LiquidHD device across the network, a simple click on the remote control will result in full activation and instant access. This convenient and energy saving measure also benefits consumer electronics manufacturers as it meets the U.S. Energy Star rating and European regulations on low-power CE devices.

LiquidHD technology also enables significant enhancements to retail and hospitality applications.

“LiquidHD has the potential to create a game-changing technology for retail media systems and distributed ad placements in stores,” said Scott Francis, chief technology officer at PRN Corporation (Premier Retail Networks by Thomson). “The ability to target HD advertising to an individual screen or group of screens is exactly what advertisers want. LiquidHD could significantly increase the value of in-store advertising across TV displays worldwide.”

Silicon Image plans to partner with industry leading service operators and consumer electronics companies to form an industry consortium that supports and fosters the LiquidHD technology standard for broad market adoption. For more information on LiquidHD please visit www.liquidhd.com.

About LiquidHD

LiquidHD is a foundational technology that extends the benefits of the HDMI technology, of which Silicon Image was a key inventor, to offer high-definition video, audio, remote user interface and control over commodity internet protocol (IP) networking gear. LiquidHD technology is designed to create a seamless consumer electronics network that allows users to access and transfer content to and from any device in the home. LiquidHD-enabled consumer electronics devices can stream high-definition audio/video content through a simple, secure and low cost single connection, creating a whole new personal entertainment experience. For more information, please visit www.liquidhd.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 and functionality of the LiquidHD technology and its anticipated cost, time–to- market and other advantages and benefits. These forward-looking statements involve risks and uncertainties, including, but not limited to, risks associated with the claims made regarding the features, functionality, advantages and anticipated benefits and market adoption of the LiquidHD technology, as well as those risks and uncertainties described from time to time in Silicon Image’s filings with the Securities and Exchange Commission (SEC). These risks and uncertainties could cause the actual results to differ materially from those anticipated by the forward-looking statements contained in this news release. Silicon Image assumes no obligation to update any forward-looking statement.

Silicon Image, the Silicon Image logo, LiquidHD and LiquidPlay 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.