Silicon Optix Inc. Closes Venture Debt Financing

Silicon Optix Inc. Closes Venture Debt Financing

Company Secures $6 Million in Additional Capital

San Jose, CA (May 1, 2006) – Silicon Optix, Inc., a leading supplier of advance video-image digital processing systems and integrated circuits (ICs), today announced that it has raised $6 million in venture debt managed through Western Technology Investment, a leading provider of debt financing to start-up and emerging growth companies.  The company plans to use the proceeds to fund inventory, as several of their products enter high volume production, and to provide general working capital.  To date, the company has secured in excess of $112 million of combined debt and equity funding.

Silicon Optix’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.  The company’s 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’s CEO Paul Russo commented, “We are excited to have completed this important funding as it will fuel the further development of our products, as well as provide the capital required to take our products into high volume production in order to meet existing and future demand for our products.”

Ron Swenson, Founder and Senior Partner of Western Technology Investment, said, “We are pleased to be counted among the ranks of Silicon Optix’s impressive group of investors.  Silicon Optix’s technology, including their innovative Teranex Realta HQV® video processing engine, is providing their marquee customers with cutting-edge capabilities and we are excited to be contributing to the company’s continued success.”