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China Video Industry Association Agrees to Promote and Support HDMI (28/7/2006)

China Digital Interface Industry Alliance (CDIA) Formed; New HDMI(TM) and Simplay HD(TM) Testing Centers Established in China

Silicon Image, Inc. (NASDAQ:SIMG) , a leader in semiconductors for the secure storage, distribution and presentation of high-definition content, today announced a landmark agreement with the China Video Industry Association (CVIA) under which CVIA will promote and support the use of High-Definition Multimedia Interface(TM) (HDMI(TM)) by the consumer electronics industry in China. The agreement with CVIA positions China to play a major role developing next-generation digital consumer electronics technology.

As part of the agreement, Silicon Image and CVIA have agreed to work together to promote HDMI adoption among domestic Chinese electronics manufacturers, co-develop new technology applicable to HDMI, and collaborate on establishing testing and interoperability certification labs that complement the capabilities of the HDMI Authorized Testing Centers established by Silicon Image.

In addition, Silicon Image will support the China Digital Interface Industry Alliance (CDIA), an industry alliance consisting of major Chinese electronics manufacturers that CVIA is establishing. CDIA will work to promote the use of HDMI in consumer electronic products, promote communications among manufacturers in China and abroad, and strengthen coordination between hardware manufacturers and content providers.

In a related announcement, HDMI Licensing, LLC, today announced a global reduction in the annual administration fee charged to HDMI adopters. The fee reduction was made possible by HDMI's growing success in the marketplace; more than 400 makers of consumer electronics and PC products worldwide have adopted HDMI, including 82 companies in China.

Based in Beijing, the China Video Industry Association (CVIA) is China's industry association for manufacturers of digital television, digital movie/broadcasting, high definition optical disc, set-top box and information technology equipment and components, and is focused on promoting China's digital consumer electronics industry.

In 2005, China manufactured 82 million televisions and 140 million DVD or VCD players, according to CVIA. Sales of plasma and LCD TVs are forecast to grow 105 percent this year to $5.5 billion, and are estimated to reach $10.5 billion in 2008, according to IDC.

"Today China is taking a major step forward in promoting the development of its digital consumer electronics industry," said Bai Weimin, director of the Department of Broadcasting and Television, Ministry of Information Industry. "CVIA's agreement to partner with Silicon Image to develop new digital interface technology will further the development of China's electronics manufacturers as leaders in creating advanced digital technologies."

"Under this agreement, China's companies will not only embrace the global HDMI standard but will partner with Silicon Image to participate in future technology development for HDMI," said Hao Yabin, vice secretary-general of the China Video Industry Association. "This agreement will help China develop its own intellectual property, protect the interests of China's digital consumer electronics industry, and improve the cooperation and mutual benefit of the domestic and international high definition technology industries."

"Silicon Image will work closely with China's digital consumer electronics industry to help create innovative, cutting edge products and technologies," said Steve Tirado, president and CEO of Silicon Image. "This agreement represents an important expansion of the HDMI standard into the world's largest consumer market, and strongly re-affirms HDMI as the worldwide standard for high-definition digital devices."

www.cvianet.org.cn