Court Of Appeals Rules That Genesis Microchip And Silicon Image Settled Patent Suit

April 6, 2006

Genesis Microchip Inc. (Nasdaq:GNSS), a world leader in the development of image processing technologies for flat-panel TVs, monitors, and other consumer display products, today announced that the United States Court of Appeals for the Federal Circuit has upheld the lower court's ruling that the Company and Silicon Image (Nasdaq:SIMG) have settled their patent litigation. In today's ruling, the Court of Appeals affirmed the lower court's judgment that Genesis Microchip and Silicon Image have settled their disputes based on a Memorandum of Understanding, or MOU, signed on December 18, 2002. The MOU states that Genesis has received a license for the right to use non-necessary claims under the Digital Visual Interface (DVI) Adopters Agreement and allows Genesis to receive a license to the non-necessary claims under the High-Definition Multimedia Interface (HDMI) Adopters Agreement. In addition, the MOU provides that Genesis has been granted a license to expand its use of necessary and non-necessary claims in the DVI Adopters Agreement to the consumer electronics marketplace. The lower court's opinion stated that Genesis will pay Silicon Image a monetary settlement, license fee and running royalties on all DVI and HDMI products. The MOU further states that the companies will cooperate, support and promote interoperability of DVI and HDMI. In December 2002, Genesis made provisions in its financial statements for the estimated cost of the monetary settlement and license fees. Genesis has continued to reserve estimated amounts payable to Silicon Image pursuant to the lower court's judgment regarding the MOU, since December 2002. 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, Europe, India, Taiwan, South Korea, China, Japan and Singapore. For more information about Genesis Microchip Inc. or Genesis Display Perfection technologies, please visit http://www.gnss.com.

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