Pixelworks and AMD Collaborate on Reference Platform Enabling Broadband Video, Voice and Data on 'Triple-Play' Set-top Boxes

Pixelworks, Inc. (NASDAQ:PXLW), a leading provider ofsystem-on-chip ICs for the advanced display market, today announcedthe first demonstration of the AMD (NYSE:AMD) co-designedSailfish(TM) II platform, which will be shown at the upcoming IFA 2005consumer electronics show in Berlin beginning September 5, 2005. Thereference design based on the Pixelworks(TM) PWBSP(TM)-16 BroadbandSignal Processor IC and the AMD Alchemy(TM) Au1550(TM) processorenables 'triple-play' set-top boxes (STBs) integrating broadbandvideo, voice and data access into a single device.

The Sailfish II platform, designed in cooperation by AMD andPixelworks, will accelerate product development of set-top boxes,digital media adapters and personal video recorders capable ofsimultaneously handling Internet Protocol television (IPTV),Voice-over-IP (VoIP) and network router and gateway functions. Thereference design kit, including hardware and software, will help OEMsand ODMs to rapidly implement affordable broadband media gateways thatwill offer consumers better access to broadband entertainment andinformation.

"By collaborating with AMD, the Sailfish II platform can jumpstartthe expanding market for powerful set-top boxes that handle video,telephony and data over broadband networks," said Brad Zenger, VicePresident and General Manager, Advanced Media Processors, atPixelworks. "Our strategy of developing ready-to-implement designs isthe quickest and most efficient way for OEMs to get from zero tomarket."

"Consumers expect more from their digital entertainment devices,"said Erik Salo, director of marketing, AMD Microprocessor SolutionsSector embedded group. "The Sailfish II offers a programmable solutionthat helps our customers adapt to rapidly changing and maturingtechnology in digital entertainment devices."

Accelerated Time to Market with Pre-integrated Software Solutions

The Sailfish II platform shortens development time cycles byproviding bill of materials (BOM), schematics, and design files andsupports rapid customization with standard hardware tools. Thecombination of the powerful Pixelworks and AMD processors yields ahigh-performance, programmable design for set-top box and consumerelectronics manufacturers.

The Pixelworks PWBSP-16 IC supports multiple digital video codecs,allowing customers to take advantage of varying content formats whilelimiting custom development time and resources. The AMD Alchemy Au1550processor provides low-power, high-performance support for networkcommunication, router/gateway functions, VoIP and user-interfacefunctions.

The Sailfish II platform supports codecs for multiple videostandards, including VC-1, AVC, and MPEG-2, as well as H.263++/H.264video phone capabilities. Additionally, the reference design includessoftware support for AVC/H.264 Main Profile/MPEG-4 Part 10, MPEG-4Part 2, VC-1 and MPEG-2 at high definition, with extensibility tosupport additional codec formats and video input processing, networkrouters, gateways, higher performance VPN and VoIP capabilities.

Additional companies contributing to the Sailfish II referencedesign include:

-- Alcatel: Alcatel's Open Media Client Software Development Kit (OMC SDK), including support for Real Time Streaming Protocol (RTSP) and Internet Group Management Protocol (IGMP) engines for Video-on-demand (VOD) and Broadcast over Internet BTV, with integrated support for the Ant Browser, and operational reporting modules to support usage and other operational statistics and configuration.

-- ASTRI: Hong Kong Applied Science and Technology Research Institute H.264 encoder and decoder for integrated video-IPTV STB, video phone and conferencing and home security/surveillance applications.

-- DICAS: Dicas is an MPEG-focused video coding specialist and leading developer of MPEG-4, MPEG-4 AVC/H.264 and 3GPP compliant video coding solutions. The Dicas' mpegable AVC decoder software is a high performance MPEG-4 AVC/H.264 software component, extremely error resilient, easy to integrate and compliant with MPEG-4 AVC/H.264 Main Profile, Level 3.

-- Legerity: Legerity, a provider of analog/mixed-signal integrated circuits for wireline voice and data networks, provided an integrated Subscriber Line Interface Circuit (SLIC) and AC-97 interface single chip device.

-- Opera: Opera for Home Media is a suite of Internet technologies for electronic devices, including set-top boxes, media players, video phones, and high definition televisions. Opera for Home Media is a powerful execution environment for Web applications and dynamic user interfaces, as well as a full Internet browser. Opera for Home Media enables cost effective solutions based on advanced Web technologies.

-- Vocal Technologies: The Analog Telephone Adaptor (ATA) from Vocal Technologies adds VoIP capabilities.

-- WiPro: WiPro software reference designs contribute to router/gateway functionality.

Additional technical information on the Sailfish II referenceplatform is available onhttp://www.equator.com/productsservices/hardwareplatforms.html.

About AMD

AMD (NYSE:AMD) designs and produces microprocessors, Flash memorydevices and low-power processor solutions for the computer,communications and consumer electronics industries. AMD is dedicatedto helping to delivering standards-based, customer-focused solutionsfor technology users, ranging from enterprises to government agenciesand individual consumers. For more information, visit www.amd.com.

About Pixelworks, Inc.

Pixelworks, headquartered in Tualatin, Oregon, is a leadingprovider of system-on-chip ICs for the advanced display industry.Pixelworks' solutions provide the intelligence for advancedtelevisions, multimedia projectors and flat panel monitors byprocessing and optimizing video and computer graphics signals toproduce high quality images. Many of the world's leading manufacturersof consumer electronics and computer display products utilize ourtechnology to enhance image quality and ease of use of their products.

For more information, please visit the company's Web site atwww.pixelworks.com.

Pixelworks, the Pixelworks logo, PWBSP and Sailfish are trademarksof Pixelworks, Inc. AMD, the AMD Arrow logo, AMD Alchemy, andcombinations thereof, and Au1550 are trademarks of Advanced MicroDevices, Inc. Other product and company names contained herein may betrademarks of their respective owners.

Safe Harbor Statement

This press release contains statements that are forward-lookingstatements within the meaning of the Securities Litigation Reform Actof 1995. Statements such as "accelerate product development of set-topboxes, digital media adapters and personal video recorders capable ofsimultaneously handling Internet Protocol television (IPTV),Voice-over-IP (VoIP) and network router and gateway functions" arebased on current expectations, estimates and projections about thecompany's business. These statements are not guarantees of futureperformance and involve certain risks, uncertainties and assumptionsthat are difficult to predict. Actual results could vary materiallyfrom the description contained herein due to many factors includingbusiness and economic conditions; changes in growth in the advanceddisplay, IPTV, videoconferencing and PVR/DVR industries; thenon-acceptance of the combined technologies by leading manufacturers;competitive factors such as rival chip architectures or pricing;discovery of any material and currently unknown product problems;shortages of manufacturing capacity from or failures in timelydelivery by our third-party foundries; litigation involving antitrustand intellectual property and other risk factors listed from time totime in the company's Securities and Exchange Commission filings. Inaddition, such statements are subject to the risks inherent ininvestments in and acquisitions of technologies, including the timingand successful completion of technology and product developmentthrough volume production, integration issues, unanticipated costs andexpenditures, changing relationships with customers, suppliers andstrategic partners, and potential contractual, intellectual propertyor employment issues. The forward-looking statements contained in thispress release speak only as of the date on which they are made, andthe company does not undertake any obligation to update anyforward-looking statement to reflect events or circumstances after thedate of this news release. If the company does update one or moreforward-looking statements, investors and others should not concludethat the company will make additional updates with respect thereto orwith respect to other forward-looking statements.