Contact:
     Shane Y. Hong
     Pixelplus Co., Ltd.
     6th Floor, Gyeonggi R&DB Center
     906-5 Iui-dong, Yeongtong-gu
     Suwon-si, Gyeonggi-do, 443-766
     Republic of Korea
     +82-31-888-5300

     OR

     Taylor Rafferty:
     London - Emilia Whitbread at +44 (0) 20 7614 2900
     New York - Jessica McCormick at +1 212 889 4350
     Tokyo - Jason Wagers at +81 (0) 3 3221 9513
     E-mail pixelplus@taylor-rafferty.com



                             Pixelplus Co., Ltd.
                    Consolidated Statements of Operations
                  (In thousands of USD, except per ADS data)
                                 (Unaudited)

                                THREE MONTHS ENDED         SIX MONTHS ENDED
                               June 30,     June 30,     June 30,     June 30,
                                 2008         2007         2008         2007

    Revenues                    3,627        5,350        6,865        9,281
      Products                  3,432        3,470        6,484        5,651
      Services                    195        1,880          381        3,630

    Cost of revenues            3,450        3,444        6,316        6,352
      Products                  3,413        2,930        6,246        5,452
      Services                     37          514           70          927

    Gross profit                  177        1,906          549        2,929

    Operating expenses          2,756        3,735        5,610        6,311
      Selling, general and
       administrative           1,725        2,707        3,517        3,936
    Research and development,
     net of government grants   1,031        1,028        2,093        2,375

    Income(loss) from
     operations                (2,579)      (1,829)      (5,061)      (3,382)

    Other income(expense)
      Interest income(expense),
       net                        (32)          56          (20)          99
      Foreign exchange gain
       (loss), net                (89)         (22)           5            6
      Reversal of Allowance for
       Doubtful Accounts            -          173            -          621
      Others, net                  47           (5)          81           36

    Income(loss) before income
     taxes, gain from equity
     method investments,
     dilution gain and
     minority interest         (2,653)      (1,627)      (4,995)      (2,620)
    Income tax expenses             -            -            -            -
    Income(loss) before gain
     from equity method
     investments, dilution gain
     and minority interest     (2,653)      (1,627)      (4,995)      (2,620)

    Gain from equity method
     investments, net               -            -            -            -
    Dilution gain from equity
     method investment and
     consolidated subsidiary        -            -            -            -
    Minority interest               -            -            -                   -

        Before  cumulative  effect
          of  change  in  accounting
          principle                                  (2,653)            (1,627)            (4,995)            (2,620)
        Cumulative  effect  of  change
          in  accounting  principle                -                        -                        -                        -
        Net  income  (loss)                    (2,653)            (1,627)            (4,995)            (2,620)
        Accretion  of  preferred
          shares
                                                -                        -                        -                        -
        Net  loss  attributable  to
          common  shareholders              (2,653)            (1,627)            (4,995)            (2,620)

        Loss  per  ADS  -  basic  and
          diluted                                        (0.78)              (0.13)              (1.47)              (0.20)

        ADSs  used  in  computing
          loss  per  ADS  -  basic
          and  diluted                        3,400,112      12,944,146        3,400,112      12,944,146



                                                          Pixelplus  Co.,  Ltd.
                                                  Consolidated  Balance  Sheets
                                    (In  thousands  of  USD,  except  per  ADS  data)
                                                                  (Unaudited)

                                                                        June  30,  2008    Dec.  31,  2007

        Assets
            Cash  and  cash  equivalents                          1,108                        600
            Restricted  cash                                              4,776                    5,732
            Accounts  receivable,  net                            4,592                    3,023
            Inventories,  net                                            6,092                    1,360
            Other  current  assets                                    3,432                    1,842
                Total  current  assets                              20,000                  12,557

            Other  non  current  assets                            6,943                    5,788

                Total  assets                                              26,943                  18,345

        Liabilities,  minority  interest
          and  Shareholders'  equity
            Trade  accounts  payable                                6,767                        518
            Other  accounts  payable                                1,292                        788
            Short-term  borrowings                                  8,864                    5,207
            Other  current  liabilities                          2,973                    1,264
                Total  current  liabilities                    19,896                    7,777

            Long-term  borrowings                                    1,085                            -
            Other  non  current  liabilities                      565                        403
                Total  liabilities                                    21,546                    8,180

        Minority  interest                                                      -                            -

        Series  A  convertible  redeemable
          preferred  stock                                                        -                            -

        Shareholders'  equity
            Common  stock                                                    3,251                    3,184
            Additional  paid-in  capital                      38,439                  38,289
            Accumulated  other  comprehensive
              loss                                                                      (84)                      (94)
            Accumulated  deficit                                  (36,209)              (31,214)
            Total  Shareholders'  equity                        5,397                  10,165
        Total  liabilities,  minority  interest
          and  Shareholders'  equity                            26,943                  18,345