A class action has been filed against Silicon Image, Inc. (NasdaqNM:SIMG), and certain of its officers and directors by stockholders who purchased the company's common stock between October 19, 2004 and January 24, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.

Silicon Image, Inc. produces multi-gigabit semiconductor solutions for the transmission, storage and display of digital media. The Company broadens market adoption of the digital visual interface (DVI), high-definition multimedia interface (HDMI) and serial advanced technology attachment (SATA) interfaces by licensing its Internet protocol (IP) cores to companies providing advanced system-on-a-chip solutions incorporating these interfaces.

According to a press release dated February 1, 2005, a class action lawsuit was filed on behalf of all persons who purchased, converted, exchanged, or otherwise acquired the common stock of Silicon Image, Inc., against defendants Silicon Image and certain officers and directors of the Company.

The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated by the Securities and Exchange Commission ("SEC") thereunder, thereby artificially inflating the price of Silicon Image securities. Specifically, the Complaint alleges that the Company gave fourth quarter guidance on October 19, 2004 and has since undergone a time of undisclosed executive uncertainty, and distractions which were not disclosed while insiders sold Company stock. Plaintiffs allege that, on November 11, 2004, the Company appointed Steven Laub as Chief Executive Officer and President; that the Company failed to disclose material adverse facts, including fundamental disputes between Steven Laub and others at Silicon Image regarding Mr. Laub's relative role and responsibility which resulted in substantial distractions from achieving guidance; that 281,742 shares were sold by insiders at Silicon Image who were in a position to know of the material adverse information of the fundamental disputes and resulting distractions; and that the SEC commenced a formal investigation into trading in Silicon Image shares on January 25, 2005.

Further, on or around January 25, 2005, the Company issued two press releases. One release, entitled "Silicon Image Announces Appointment of Steve Tirado as Chief Executive Officer Replacing Steven Laub," announced the resignation of its Chief Executive Officer and President, Steven Laub, and appointment of Christopher Paisley as the Company's new Chairman of the Board of Directors. The second press release, entitled "Silicon Image Reports Fourth Quarter 2004 Financials," stated that the Company's revenue in the fourth quarter decreased by 4% in comparison to the third quarter. The price of the Company stock has declined by 15% since January 24, 2005.

If you bought Silicon Image, Inc. securities between October 19, 2004 and January 24, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.