Pixelworks Announces Strategic Equity Investment in Shanghai Subsidiary

Earnings Guidance Reaffirmed for Q4 2022

Portland, Oregon., December 31, 2022 /PRNewswire/ — Pixelworks, Inc. (NASDAQ: PXLW) (the “Company”), a leading provider of innovative video and display processing solutions, today announced the acquisition of its majority-owned subsidiary, Pixelworks Semiconductor Technology (Shanghai) Co., Ltd. (“PWSH”) has entered into an agreement with a group of US-based private equity and strategic investors. Chinaand entities owned by PWSH employees in exchange for an equity interest in PWSH.

Overall, the capital increase agreement is worth approximately $1.4 million in exchange for a total stake of 0.54% in PWSH, approximately $250.7 millionand non-employee investors pay in RMB equivalent to approx. $14.3 million Reflects a pre-money valuation of RMB equivalent in exchange for 2.76% total equity interest in PWSH $501.4 millionFollowing the expected closing of these transactions, Pixelworks, Inc. will continue to own approximately 78.2% of PWSH.

President and CEO of Pixelworks, Todd Devonis“This latest transaction to secure additional capital investment in our PWSH subsidiary is a testament to the recognized value of our vision processing technology.” China There are also growth opportunities associated with this part of our business. In addition to further strengthening PWSH’s overall financial position, this new capital will provide us with the flexibility to support our growth and execution of our operational goals as we continue to prepare PWSH to apply for a local listing next year. Raise. ”

Additionally, the company reaffirmed the financial guidance previously provided for fourth quarter total revenue. $16 million When $18 million.

Details regarding the capital increase agreement are available in the Company’s filings with the Securities and Exchange Commission, including Form 8-K filed today. December 28, 2022.

safe harbor declaration

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may contain terms such as “commence,” “continue,” “plan,” “expect,” “believe,” “predict,” and similar terms or negative forms of such terms. can be identified by using Statement regarding the sale of his PWSH securities to the purchaser. PWSH applying for a local listing in the next year, including its timing, expected earnings and uses thereof, resulting ownership of PWSH, profit on sale of PWSH securities to PWSH, resulting growth opportunities and financial condition of PWSH. plans, and a statement regarding the company’s expected financial performance and outlook for the fourth quarter of 2022. These statements are based on management’s current expectations. Forward-looking statements involve certain risks and uncertainties, and actual results and timing of events may differ materially from those described or implied by such statements. These risks include, but are not limited to, our ability to execute our strategies. competitive factors; current global health and economic challenges, including the impact of COVID-19; Changes to Listing Requirements on STAR Market.Changes as a result of management’s further consideration of fourth quarter results, changes made as a result of the completion of the fourth quarter closing process, and changes related to our business and operations as described under the heading Other Risks “Risk Factors” and other sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2021 September 30, 2022, and other current and periodic reports of the Company filed or filed with the SEC from time to time. All forward-looking statements herein are made as of the date hereof and are based on information available to us as of the date hereof. We undertake no obligation to update any forward-looking statements provided to reflect events occurring or existing after the date the forward-looking statements were made, except as required by law. I don’t owe you.

About Pixelworks

Pixelworks provides industry-leading content creation, video delivery, and display processing solutions and technologies that enable highly authentic viewing experiences with superior visual quality across all screens, from movies to smartphones and beyond. to The company has a 20-year history of delivering image processing innovations to leading providers of consumer electronics, professional displays, and video streaming services. For more information, visit the company’s website at www.pixelworks.com.

Note: Pixelworks and the Pixelworks logo are trademarks of Pixelworks, Inc.

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