<PAGE>
EXHIBIT 99.1
<PAGE>
Company Press Release
Silicon Image Completes Acquisition of DVDO
Expands Technology Offerings for Consumer Electronics Market
SUNNYVALE, Calif.--(BUSINESS WIRE)--July 6, 2000--Silicon Image, Inc.
(Nasdaq:SIMG - news), a leading provider of high-bandwidth semiconductor
solutions, today announced that it has completed the acquisition of DVDO Inc.
(Campbell, Calif.), a provider of digital video processing semiconductors for
the consumer electronics industry. This acquisition positions Silicon Image to
extend its Digital Visual Interface (DVI) technology leadership beyond the PC
market and into emerging digital consumer electronics applications such as
digital TVs, DVD players and set-top boxes for high definition video.
The transaction will be accounted for as a purchase. Under terms of the
acquisition, Silicon Image will issue approximately 770,000 shares of Common
Stock in exchange for all outstanding shares and stock options of DVDO.
Dr. David Lee, president and CEO of Silicon Image, noted, "This acquisition
positions Silicon Image as a premier supplier of semiconductor solutions for PC
and consumer electronics companies who understand and want to leverage the
benefits of an all digital design. DVDO's new all-digital video image processing
technology is very synergistic with our DVI technology, and we now have their
excellent engineering talent on board at Silicon Image. DVDO's products are
targeted at suppliers of digital hosts and entertainment displays for the
consumer electronics market, a mass market we are also targeting with our new
High-bandwidth Digital Content Protection (HDCP) technology for DVI."
About Silicon Image
Silicon Image designs, develops and markets semiconductor solutions for
applications that require cost-effective, high-bandwidth, integrated solutions
for high-speed data communications. The company's PanelLink technology provides
scalable, end-to-end, all-digital connectivity between computers, controllers,
or other sources of video and digital video display devices such as flat-panel
monitors or digital CRTs.
Silicon Image's products have been incorporated in host systems and displays
sold by leading manufacturers such as Apple, ATI, Compaq, Fujitsu, Gateway,
Hitachi, IBM, LG, Matrox, NEC, Princeton Graphics, Samsung, Sharp, Sony, Toshiba
and ViewSonic. The PanelLink protocol has been adopted by the Digital Display
Working Group (DDWG) in the now established Digital Visual Interface
<PAGE>
(DVI) specification. Silicon Image, Inc. is based in Sunnyvale, Calif. For
more information on Silicon Image, Inc. and its solutions, visit
www.siimage.com.
Safe Harbor Statement
This news release contains forward-looking information within the meaning of
federal securities regulations. These forward-looking statements include
statements related to the anticipated benefits of the DVDO acquisition and the
extension of Silicon Image's technology leadership into emerging digital
consumer electronics applications. These forward-looking statements involve
risks and uncertainties, including those described from time to time in Silicon
Image's filings with the Securities and Exchange Commission (SEC), that could
cause the actual results to differ materially from those anticipated by these
forward-looking statements. In particular, see "Management's Discussion and
Analysis of Financial Condition and Results of Operations--Factors Affecting
Future Results" in the most recent Quarterly Report on Form 10-Q and Annual
Report on Form 10-K filed by Silicon Image with the SEC. Silicon Image assumes
no obligation to update this forward-looking information.
Note to Editors: PanelLink is a registered trademark of Silicon Image, Inc.
