Silicon Image and Genesis Microchip Sign Settlement

Silicon Image and Genesis Microchip Sign Settlement and License Agreement; Silicon Image Expects $13-$15 Million Increase in Fourth Quarter 2006 Operating Income

Silicon Image, Inc., a leader in semiconductors for the secure storage, distribution and presentation of high-definition content, today announced it has signed a settlement and license agreement with Genesis Microchip Inc., which includes provisions for ongoing royalty licensing revenue for Silicon Image on DVI and HDMI products, resolving an outstanding patent matter between the two companies. As a result of this agreement, Silicon Image will record a one-time catch-up of previously earned royalties and a partial recovery of patent assertion costs in its fourth quarter ending Dec. 31, 2006.

The agreement concludes matters associated with a suit that Silicon Image originally filed in 2001 in the U.S. District Court for the Eastern District of Virginia against Genesis Microchip Corp. and Genesis Microchip Inc. (collectively, "Genesis") for infringement of Silicon Image's patents.

By Silicon Image