Skyworth Selects Pixelworks’ PA168 MotionEngine Video Display Processors to Power Ultra HD 4K TVs

Established Video Innovator Targets High End Panels for the Chinese Market

Pixelworks, Inc. (PXLW), an innovative provider of video display processing technology, today announced that its PA168 MotionEngine™ video display processor has been selected to power Skyworth’s Ultra HD 4Kx2K Dual Core Android 3D Smart TVs. These new high-end flat panels will deliver the very highest picture quality and an immersive TV viewing experience for the Chinese market.

“Pixelworks is very pleased to work with Skyworth to lead the way in delivering Ultra HD 4Kx2K TVs to the China market,” said Graham Loveridge, SVP Strategic Marketing and Business Development of Pixelworks. “The combination of unprecedentedly high resolution, price point, and superior video display processing will quickly affirm Skyworth’s leadership position in this all-important market.”

Pixelworks’ PA168 MotionEngine was designed from the ground up to address the Ultra HD market and solves the most complex and persistent problems associated with displaying video at high resolutions and refresh rates. Pixelworks’ advanced video display solutions include patented Motion Estimation and Motion Compensation (MEMC) technologies and the industry’s only Halo-Free Frame Rate Conversion (FRC).

“Skyworth’s choice of Pixelworks’ video display processor enables unparalleled video performance in our Ultra HD 55E780U Dual-Core Android Smart TV at a very compelling price point,” said a Skyworth company spokesperson. “We believe this industry-leading technology differentiates our products, delivering greater value and quality to our Chinese consumers.”

The PA168 MotionEngine contains a combination of industry-leading technical capabilities, including Pixelworks’ 6^th generation Halo-Free FRC technology; an innovative cascading architecture that allows platforms to be scaled for significantly higher resolutions and refresh rates; proprietary n2m™ technology for smooth playback of low-frame internet video content, support for major 3D formats; and real-time 2D to 3D conversion.

For additional information on new products, as well as product demos, please contact your local Pixelworks office (http://www.pixelworks.com/locations.php) to obtain an invitation.

About Pixelworks, Inc.

Pixelworks creates, develops and markets video display processing technology for digital video applications that demand the very highest quality images. At design centers around the world, Pixelworks engineers constantly push video performance to keep manufacturers of consumer electronics and professional displays worldwide on the leading edge. The company is headquartered in San Jose, CA.

For more information, please visit the company’s Web site at www.pixelworks.com.

Note: Pixelworks, the Pixelworks logo and MotionEngine are all registered trademarks of Pixelworks, Inc.

About Skyworth

Skyworth Digital Holdings Ltd. (HKEX stock code:0751) established in 1988. It is the leading PRC TV manufacturer based in Shenzhen, with a mission to be the No. 1 Display Technology in the PRC. Skyworth is specialized in TV production with a focus on high-end digital products, including LCD TV, HD CRT TV, slim CRT TV, Plasma TV, digital set-top box, mobile phones, car electronics, security monitors and small size LCD modules. In 2006/07, Skyworth’s total sales volume of TV and group turnover reached 8.6 million units and HK$12.6 billion, respectively. According to the survey conducted by Gfk Asia Pte. Ltd. in 2006, Skyworth ranked No. 1 among national and foreign brands in terms of sales amount in 100 major cities in the PRC. In December 2003 Skyworth firstly launched the self-developed V12 digital engine for high definition TV in China. In 2004-2005, 6 basic colors technology has been widely applied to Skyworth’s TV. In May 2006, the Group introduced the recordable LCD TV, 3G-USB LCD TV, auto-adjustable LCD backlight technology in September 2006 and the stabilizing technology to improve the response time of motion pictures and CooCaa TV in the first and third quarter of 2007, respectively. Being the first PRC TV manufacturer explored the overseas market in 1993, Skyworth’s quality OEM products have been recognized by international brands. Overseas markets contributed 9.7% in total turnover in 2006/07. Skyworth's R&D is led by experienced electronics engineers and it cooperates with well-known suppliers: Real Media Networks, Trident, Pixelworks, Texas Instruments, LG, Fujitsu and Epson in application software, industrial design and plant management. Skyworth's Science Industrial Park with a total area of over 640,000 square meters, located in Shiyan, Shenzhen, has commenced production of flat-panel TV and high-end electronics products in October 2006. Meanwhile, the new regional production plant at Ruyi district of Huhhot, Inner Mongolia has also started operation. The two new plants give Skyworth additional production capacity of totally 4 million units. Skyworth was listed on The Stock Exchange of Hong Kong Limited (0751) in April 2000. Please visit http://www.skyworth.com for more information.