SILICON OPTIX ACQUIRES TERANEX

Silicon Optix announced the acquisition of Teranex, Inc., the leading supplier of Hollywood quality image processing solutions for the broadcast, post-production, and high-end home theater markets. The acquisition occurred in late July.

San Jose, Calif. (August 2004) - Silicon Optix announced the acquisition of Teranex, Inc., the leading supplier of Hollywood quality image processing solutions for the broadcast, post -production, and high -end home theater markets. The acquisition occurred in late July.


"Leading up to the acquisition, Silicon Optix has been working with Teranex under a veil of secrecy for almost two years. The results of our efforts for the home theater market will be revealed for first time at CEDIA Expo in Indianapolis (September 10 -12)," said Dennis Crespo, vp of Marketing for Silicon Optix.

Teranex's technology roots go back to the early 1980s, where Lockheed Martin developed it for tactical image and video processing. Teranex has spent many years perfecting the video processing algorithms in cooperation with the most demanding customers - the "Golden Eyes" of broadcast and post -production.

"We purchased Teranex for their mature and industry -proven programmable video processing hardware and software platforms," said Paul Russo, chairman and CEO for Silicon Optix. "They are well known as a 'best of class' solution within the broadcast, post -production, cable, satellite and digital cinema industries, where quality cannot be compromised."

About Silicon Optix:
Silicon Optix Inc., a privately held fabless semiconductor company, is the leading supplier of digital video scaling and geometry processing technology delivering innovative IC and system solutions to the capture, transmission, distribution, editing, storage and display markets. Silicon Optix is headquartered in San Jose, California, with operations in Hannover, Germany; Orlando, Florida; Taipei, Taiwan and Toronto, Canada. For more information about Silicon Optix, please visit the company`s Web site at www.siliconoptix.com.

All CEDIA attendees interested in learning more about Silicon Optix are invited to attend the
Launch Party
Friday, September 10, 2004
5 -9 pm
Omni Severin Hotel
40 West Jackson Place
Indianapolis

(Stop by booth #1800 in the Dome for your tickets or bring your badge)

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