SUNNYVALE, Calif., February 4, 2010 – Silicon Image, Inc. (NASDAQ: SIMG), a leader in semiconductors and intellectual property for the secure distribution, presentation and storage of high-definition content, today reported financial results for its fourth quarter and fiscal year ended December 31, 2009.

Revenue for the fourth quarter of 2009 was $35.6 million, compared to $37.2 million for the third quarter of 2009 and $59.4 million for the fourth quarter of 2008. Revenue for 2009 totaled $150.6 million, compared with $274.4 million for 2008.

GAAP net loss for the fourth quarter of 2009 was $64.6 million, or $0.85 per diluted share, compared to a net loss of $15.5 million, or $0.21 per diluted share, for the third quarter of 2009 and net income of $5.0 million, or $0.07 per diluted share, for the fourth quarter of 2008. GAAP net loss for the fourth quarter of 2009 includes a $28.3 million intangible asset impairment charge, a $14.7 million restructuring charge, and a tax provision of $14.6 million. GAAP net loss for 2009 was $126.8 million, or $1.69 per diluted share, compared to net income of $10.1 million, or $0.13 per diluted share for 2008. GAAP net loss for 2009 includes a $19.2 million goodwill impairment charge, a $28.3 million intangible asset impairment charge, a tax provision of $12.5 million, and $22.9 million in restructuring charges.

Non-GAAP net loss for the fourth quarter of 2009 was $5.0 million, or $0.07 per diluted share, compared to a non-GAAP net loss of $3.4 million, or $0.04 per diluted share, for the third quarter of 2009 and non-GAAP net income of $15.7 million, or $0.21 per diluted share, for the fourth quarter of 2008. Non-GAAP net loss for 2009 was $16.3 million, or $0.22 per diluted share, compared to net income of $41.7 million, or $0.54 per diluted share, for 2008. Non-GAAP net income (loss) for these periods exclude stock-based compensation expense, amortization of intangible assets, impairment of goodwill and intangible assets, and restructuring charges.

A reconciliation of GAAP and non-GAAP items is provided in a table following the Condensed Consolidated Statements of Operations.

"With our major restructuring programs complete and a lower breakeven point we are committed to returning to profitability,” said Camillo Martino, chief executive officer of Silicon Image, Inc. “The company is poised today to leverage the recently updated HDMI Specification Version 1.4 with first-to-market products ready for volume production, as we begin to take advantage of a new product introduction cycle and pursue year on year revenue growth,” concluded Martino.

The following are Silicon Image’s financial performance estimates for the first quarter of 2010:

Revenue: $30 million - $32 million
Gross margin: 54% - 55%
GAAP operating expenses: approximately $26 million
Non-GAAP operating expenses: approximately $23 million
Interest income: approximately $0.7 million
Diluted shares outstanding: approximately 75 million

Use of Non-GAAP Financial Information

Silicon Image presents and discusses gross margin, operating expenses, net income and basic and diluted net income per share in accordance with Generally Accepted Accounting Principles (GAAP) and on a non-GAAP basis for informational purposes only. Silicon Image believes that non-GAAP reporting, giving effect to the adjustments shown in the attached reconciliation, provides meaningful information and therefore uses non-GAAP reporting to supplement its GAAP reporting and internally in evaluating operations, managing and monitoring performance, and determining bonus compensation. Further, Silicon Image uses non-GAAP information as certain non-cash charges such as amortization of intangibles, stock based compensation and goodwill impairment do not reflect the cash operating results of the business. Silicon Image has chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of its operating results and to illustrate the results of operations giving effect to such non-GAAP adjustments. The non-GAAP financial information presented herein should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

Conference Call

The company will host an investor conference call today to discuss its fourth quarter and fiscal year 2009 results at 2:00 p.m. Pacific Time and will webcast the event. To access the conference call, dial 877-856-1964 or 719-325-4810 and enter pass code 4747728. The webcast will be accessible on Silicon Image's investor relations Web site at http://www.SiliconImage.com. A replay of the conference call will be available within two hours of the conclusion of the conference call through February 9, 2010. To access the replay, please dial 888-203-1112 or 719-457-0820 and enter pass code 4747728.

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, Japan, Korea and Taiwan. For more information, please visit www.siliconimage.com.

NOTE: Silicon Image and the Silicon Image logo are trademarks, registered trademarks or service marks of Silicon Image, Inc. in the United States and/or other countries. HDMI, the HDMI logo, and High-Definition Multimedia Interface are trademarks or registered trademarks 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.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements include, but are not limited to, statements related to Silicon Image's future operating results, including revenue, gross margin, operating expenses, interest income and use of cash, new product introductions, improvements in the company’s operating infrastructure and the impact of such improvements on the roll-out of the company’s new products. These forward-looking statements involve risks and uncertainties, including the risks of uncertain economic conditions, competition in our markets, the company's ability to improve its operating infrastructure and deliver financial performance in-line with its stated goals and other 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 these forward-looking statements. In addition, see the Risk Factors section of the most recent Form 10-K and 10-Q filed by Silicon Image with the U.S. Securities and Exchange Commission. These forward-looking statements are made on the date of this press release, and Silicon Image assumes no obligation to update any such forward-looking information.