Genesis Microchip and Silicon Image Enter Into a Definitive Agreement To Settle Terms of 2002 Memorandum of Understanding

Business Wire, Dec 21, 2006

SAN JOSE, Calif. -- Genesis[R] Microchip Inc. (Nasdaq:GNSS), a world leader in the development of image processing technologies for flat-panel TVs, monitors, and other consumer display products, and Silicon Image today announced they have entered into a definitive agreement that resolves the terms of a Memorandum of Understanding (MOU) previously entered into by the companies in 2002.

The definitive agreement resolves all major items of contention between the two companies and finalizes the recurring royalty rates that are due from Genesis to Silicon Image on all Genesis controllers that implement the DVI and HDMI standards. The agreed upon royalty rates are consistent with those used by the Company since it entered into the MOU. As part of this agreement, Genesis will pay Silicon Image $4.5 million, which will be recorded as a settlement expense in the quarter ending December 31, 2006, which will impact both GAAP and non-GAAP earnings per share.

"I am glad that Genesis and Silicon Image have reached this agreement," said Elie Antoun, president and CEO of Genesis Microchip. "With this issue now firmly resolved, we can close this chapter and continue to focus all our attention on delivering leading-edge products to our customers."

About Genesis Microchip

Genesis Microchip Inc. (Nasdaq:GNSS) is a leading provider of image processing systems enabling superior picture quality in flat-panel TVs and a variety of consumer and PC-display products. Featuring Genesis Display Perfection[R] technologies and Emmy award-winning Faroudja[R] video technologies, Genesis system-on-a-chip solutions are used worldwide by display manufacturers to produce visibly better images across a broad array of devices including flat-panel displays, digital TVs, projectors, A/V receivers and DVD players/recorders. The Genesis technology portfolio features analog and mixed signal system-on-a-chip design, DCDi[R] by Faroudja deinterlacing, TrueLife[TM] video enhancement, IntelliComb[TM] video decoding and includes over 185 patents. Founded in 1987, Genesis supports its leading brand-name customers with offices in the U.S., Canada, India, Europe, Taiwan, South Korea, China, Japan and Singapore. For more information about Genesis Microchip Inc. or Genesis Display Perfection technologies, please visit www.gnss.com.

Note to Editors: Genesis, Genesis Display Perfection, Faroudja, DCDi by Faroudja, TrueLife and IntelliComb are trademarks or registered trademarks of Genesis Microchip Inc. All other trademarks are the property of their respective owners.