Silicon Optix & Runco International Bring Hollywood Home with Customized ViViX™ Powered Realta HQV™

Runco International, Inc., the world leader in high-end home theater video display technology, is once again advancing its technological edge by sealing a partnership with Silicon Optix

New Advanced Technology Partnership Will Set New Benchmark

for Video Excellence on Programmable Microchips

LAS VEGAS, NEVADA -January 8, 2005 - Runco International, Inc., the world leader in high -end home theater video display technology, is once again advancing its technological edge by sealing a partnership with Silicon Optix, a leading microchip manufacturer headquartered in San Jose, California. Under the new agreement Silicon Optix's Realta chip featuring Hollywood Quality Video™ (HQV) technology will power Runco's Next Generation ViViX enabled display devices. Starting the fourth quarter of 2005, the enhanced ViViX powered by HQV chip - a version specially developed by Silicon Optix for Runco - will be the catalyst to raise the picture quality of the full line of Runco products. ViViX is a propriety technology of Runco, its video decoding and processing capabilities upconvert standard definition sources to virtual high definition for the ultimate in widescreen viewing perfection.

"This is going to be quite a technological coup for us," said Sam Runco, Founder and CEO of Runco International, Inc. "Our forward thinking philosophy requires that we constantly consider technical integration that will enable us to deliver superior products to our customers. Partnering with Silicon Optix and blending these two ground -breaking technologies will allow Runco to effectively raise the bar in continually engineering simply the best video processing display devices available in the market."

Realta is a highly integrated advanced SOC (System on Chip) that enables a new benchmark standard of video excellence known as Hollywood Quality Video, or HQV. Its architecture incorporates the industry's first fully software programmable video array processor capable of performing over 1 trillion operations per second, an Image Fidelity Enhancement Engine, and end -to -end true 10 -bit image processing. These core technologies combine together to enable the simultaneous processing of dual high -definition image streams, delivering quality video into home entertainment and professional video display products including plasmas, RPTVs LCD TVs and front projectors.

"Our award -winning Realta chip originates from Teranex's $60,000 broadcast and post -production platforms to deliver a new standard in image quality," said Paul Russo, Chairman & CEO of Silicon Optix Inc. "To partner with 'The World's Finest Home Theater Products' manufacturer validates our leadership position in the display processing market and enables both companies to drive the next wave of the digital video revolution and bring digital cinema quality to the consumer markets."

Since its launch in September 2004, the Realta HQV processor has already won five awards including CES 2005 'Best of Innovations', 'Best of the Year' from the Perfect Vision, 'Best Buzz' of CEDIA from Insight Media, AVGuide Monthly's 'Best Product Overall,' and Red Herring's top 100 Innovators Award.

About Silicon Optix
Silicon Optix Inc, a privately held fabless semiconductor company, is the leading supplier of advanced video/image digital processing integrated circuits (ICs). The company's products are driving three unique technologies into a broad range of markets: a patented, powerful, array -based programmable DSP for digital video, industry -leading software algorithms from Teranex and proprietary eWARP* geometry processing. Its mission is to leverage these innovative technologies into ICs that will enable the next generation of digital video/image capture, transmission, distribution, editing, storage and display solutions, with an initial focus on large area digital displays including front and rear projection. Silicon Optix is headquartered in San Jose, California, with operations in Hannover, Germany; Orlando, Florida; Shanghai and Shenzhen, China; Taipei, Taiwan and Toronto, Canada. For more information about Silicon Optix, please visit: www.siliconoptix.com.


About Runco International, Inc.
Founded in 1987 and currently headquartered in Union City, California, Runco International, Inc. is a market leader in state -of -the -art projection systems, flat -panel plasma monitors, video processors and other components for the consumer market. Runco's innovations have won numerous awards and citations from the world press. Runco was the first company to introduce and market a line doubler with a multi -frequency projector in 1990 and also introduced the first multiple -aspect -ratio controller, the ARC -IV, to the Home Theater market. Recently, both of these features have become essential for the new digital high definition capable televisions. For more information on Runco International, visit the company's Web site at www.runco.com.

ViViX is a trademark of Runco International. Hollywood Quality Video and HQV are trademarks of Silicon Optix.

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