SIMGE Silicon Image (MM)

Silicon Image Announces Filing of Its Form 10-Q for Quarter Ended September 30, 2003 and Completion of Audit Committee Examination SUNNYVALE, Calif., Feb. 17 /PRNewswire-FirstCall/ -- Silicon Image, , a leader in multi-gigabit semiconductor solutions for the secure transmission and storage of rich digital media, announced today it has filed its Form 10-Q with the SEC for the quarter ended September 30, 2003 and the completion of its previously announced Audit Committee examination. As previously disclosed, the Company announced that it would delay the filing of its quarterly report on Form 10-Q for the quarter ended September 30, 2003 because an examination had been commenced by the Audit Committee of the Board of Directors. The Company's Audit Committee, with the assistance of independent outside counsel and independent outside consultants, was examining certain matters, principally the Company's recognition of revenue associated with its licensing transactions in 2002 and 2003. In February 2004, the Company's Audit Committee completed its examination. During the course of the examination, the Audit Committee and its outside advisors conducted a thorough review of the Company's licensing transactions in 2002 and 2003, as well as a reviewof certain other matters. As a result of its examination, the Audit Committee concluded that no changes were required to the results previously announced for the quarter ending September 30, 2003, or any prior reporting period. In its review, the Audit Committee concluded that there were no accounting irregularities and that no member of the Company's management engaged in misconduct in connection with the matters under examination. The Audit Committee issued the following statement, "The Audit Committee has worked closely with its outside advisors to conduct a thorough and independent examination, which has been completed, and the Company's Form 10-Q for the quarter ending on September 30, 2003, is now on file. The Audit Committee was principally examining the Company's recognition of revenue associated with its licensing transactions in 2002 and 2003. With this examination now completed and its results disclosed, we look forward to the Company's continued successful execution of its business strategy." The NASDAQ staff has informed the company that its stock will continue to be listed on the NASDAQ National Market. However, such listing will be conditioned on the timely filing with the SEC of all periodic reports under the Securities Exchange Act of 1934, such as the annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, for all reporting periods ending on or before December 31, 2004. Should the Company fail to timely make any such filing, the Company's stock may be transferred to the NASDAQ SmallCap Market or immediately delisted from the NASDAQ National Market. The NASDAQ staff has reserved the right to reconsider the terms of the foregoing exception permitting continued listing of the Company's stock. David Lee, Silicon Image's CEO, commented, "We appreciate the diligence of the Audit Committee in conducting a thorough and independent examination, we respect their conclusions, and we are pleased that the examination is now complete. We remain focused on the business and look forward to continuing to provide our customers with market leading solutions in 2004 and beyond." About Silicon Image Headquartered in Sunnyvale, Calif., Silicon Image, Inc. designs, develops and markets multi-gigabit semiconductor and system solutions for a variety of communications applications demanding high-bandwidth capability. With its proprietary Multi-layer Serial Link (MSL(TM)) architecture, Silicon Image is well positioned for leadership in multiple mass markets including PCs, consumer electronics, storage and networking. Currently, Silicon Image leads the global PC/display arena with its innovative digital interconnect technology, and is now emerging as a leading player in the storage industry-- offering robust, high-bandwidth semiconductors and systems. For more information on Silicon Image, visit http://www.siliconimage.com/. This news release contains forward-looking information within the meaning of federal securities regulations. These forward-looking statements include statements related to changes in Silicon Image's controls and internal procedures and Silicon Image' future filings with the SEC. These forward-looking statements involve risks and uncertainties, including those described from time to time in Silicon Image's periodic filings with the SEC, that could cause the actual results to differ materially from those anticipated by these forward-looking statements. Also see "Management's Discussion and Analysis of Financial Condition and Results of Operations-Factors Affecting Future Results" in the most recent Annual Report, Form 10-K or 10-Q filed by Silicon Image with the SEC. Silicon Image assumes no obligation to update this forward-looking information. NOTE: Silicon Image, MSL, PanelLink and http://www.siliconimage.com/ are trademarks, registered trademarks or service marks of Silicon Image, Inc. in the United States and other countries. DATASOURCE: Silicon Image, Inc. CONTACT: Robert Gargus, Chief Financial Officer, +1-408-616-4114, or Liz Casolari, Investor Relations, +1-408-616-1543, both of Silicon Image, Inc., fax, +1-408-830-9531 Web site: http://www.siliconimage.com/

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