June 18, 2008

Flexible Picture Systems Acquires Silicon Optix’s Image AnyPlace and Whitehorse Product Lines

Silicon Optix, the leader in advanced video processors, is pleased to announce that its Image AnyPlace brand of geometry correcting scalers and its Whitehorse line of OEM HQV video processors have both been acquired by Flexible Picture Systems of Richmond Hill, Ontario. Effective immediately, both product lines will be available exclusively from Flexible Picture Systems.

In addition to the product lines, Flexible Picture Systems has also acquired the rights to develop follow-on products based on Silicon Optix's award winning technology. Both existing and new products will be sold through the existing Image AnyPlace network of representatives and distributors, under the same terms and conditions that have been in effect. Pricing, commissions and discount structure for all Image AnyPlace products will remain unchanged.

"As we begin the release of the next generation Silicon Optix IC products, we must concentrate on our core strategy of achieving rapid growth by providing high quality, video processing ICs to the widest possible consumer electronic market. Our high-end Image AnyPlace systems business has been very successful, but this business is not a good fit for our long term IC strategy," said Steve Wood, VP Business Development for Silicon Optix. "Accordingly, we feel that Image AnyPlace will best be developed by specialists in the pro AV field, and that Flexible Picture Systems offers the best continuation strategy for this business. We will assist Flexible Pictures Systems in achieving the smoothest possible transition."

"We are thrilled to begin this exciting new venture. We have long been familiar with the Silicon Optix ICs as the finest video processors in the market. Recently, we began development of Realta and Reon based products for introduction in late 2008. Now, with the addition of Image AnyPlace and Whitehorse, we will have a flying start," said Saeid Mohmedi, VP Operations for Flexible Picture Systems.

For additional information concerning this acquisition, please contact Steve Wood, VP Business Development [email protected] or Saied Mohmedi, VP Operations [email protected]

About Flexible Picture Systems: Flexible Picture Systems is a manufacturing company in the business of providing high-end video and audio products for the professional AV and high-end Home Theater markets. Headquartered in Richmond Hill, Ontario, FPS is the exclusive manufacturer and source of the Image AnyPlace brand of geometry correcting/edge blending switcher/scalers. FPS also manufactures and provides the Whitehorse line of HQV based, high-end Home Theater scalers. For more information, visit www.flexiblepicturesystems.com.

About Silicon Optix: Silicon Optix is a leader in programmable, high performance video processing and unique and proprietary geometry processing IC solutions delivering Hollywood Quality Video (HQV). Silicon Optix ICs can be found in top-tier consumer electronics products such as high resolution displays, premium DVD players, ultra-thin RPTVs and front projectors. Teranex, a division of Silicon Optix, is a leader in programmable video processing systems-level solutions for the professional broadcast and post production markets. Silicon Optix is headquartered in San Jose, California, with offices around the world. For more information visit www.siliconoptix.com, www.teranex.com and www.hqv.com.