Major Hollywood Studio Endorses Silicon Image’s New LiquidPlay™ Content Protection Technology

LAS VEGAS—(BUSINESS WIRE)—January 8, 2009— Silicon Image™, Inc. (NASDAQ:SIMG), a leader in semiconductors and intellectual property for the secure distribution, presentation and storage of high-definition content, today announced that the Fox Group has endorsed LiquidPlay™, a new digital security technology introduced by Silicon Image. As a key feature of Silicon Image’s new LiquidHD™ personal entertainment technology, LiquidPlay content protection allows consumers to enjoy their purchased or rented digital multi-media content on any of their LiquidHD-enabled consumer electronics devices, in the home or on the go.

A consumer-friendly, hardware-based security solution, LiquidPlay content protection offers a much more robust approach to protecting premium media content than software-based solutions, which are responsible for most security breaches.

“We are always looking for new ways to securely enhance and broaden consumers’ access to our motion pictures and television shows. As such, promising technologies such as LiquidPlay--which flexibly and robustly deliver convenient access to that content in the home environment, but without sacrificing content protection--greatly benefit both content producers and consumers,” said Andrew G. Setos, president of engineering, Fox Group.

LiquidPlay content protection is an integral part of the newly introduced Silicon Image LiquidHD™ technology, a unique consumer electronics centric networking environment in which protected digital content, including movies, television programs, and music, can move easily among LiquidHD-enabled devices. LiquidHD technology provides for automatic discovery among any LiquidHD-enabled devices to create a user-friendly environment in which LiquidPlay forms a “personal domain” that allows any device to access or play acquired content.

The LiquidPlay architecture is based on advanced encryption technology, including AES and Elliptic Curve, to provide an unprecedented level of content protection. All content entering a LiquidHD-enabled domain is encrypted with 128-bit AES encryption and keys are securely kept in hardware, preventing software access that has compromised content protection technologies in the past.

“With LiquidPlay, Silicon Image continues its quest to deliver digital content anytime, anywhere and on any device,” said Steve Tirado, president and chief executive officer at Silicon Image, Inc. “We are looking forward to partnering with the world’s leading entertainment creators and electronics manufacturers to create a networking environment that will give consumers the freedom to enjoy their choice of movie, TV show or music on any LiquidHD-enabled consumer electronics device they own.”

LiquidPlay technology will be available as part of the LiquidHD specification. In addition, Silicon Image plans to partner with industry leading consumer electronics companies and pay TV service operators to form an industry consortium that supports and fosters the LiquidHD technology standard for broad market adoption.

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 and LiquidPlay technologies and their anticipated 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 and LiquidPlay technologies, 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.

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