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Teranex and Kodak Join Forces to Deliver Unparalleled Image Quality.

Orlando, Florida. (September 8th, 2006) — Teranex, a leader in high performance video processing solutions for the broadcast and post-production industries, is pleased to announce a new strategic alliance with Kodak. Teranex has licensed proprietary film restoration and enhancement algorithms from the Entertainment Imaging Division of Eastman Kodak Company (EKC)

“This is the beginning of a long-term relationship between Teranex and Kodak,” said Jed Deame, co-founder and general manager of Teranex. “It will enhance both the image quality and functionality of our current and future systems by integrating algorithms provided by the world-class leader in the development of film and hybrid motion imaging technology used in the feature film and television industries.”

The first Kodak technologies to be integrated into the Teranex portfolio will be EKC’s proprietary Motion Compensated Grain Management, which allows for real-time manipulation of grain levels in scanned film, and Adaptive Sharpening, which preserves the detail of the image throughout processing.

“Teranex’s 15 trillion operation/second 3RU Video Computer Platform is a seamless fit for integrating Kodak’s high-tech software algorithms,” said Jim Minno, television segment manager for Kodak’s Entertainment Imaging Division. “We’ve been giving technology demonstrations on these algorithms for the past couple of years with great interest from production companies and broadcasters. Teranex has a wide base of customers in these markets and they will benefit from the ability to efficiently enhance film images, including 16 mm and archival footage, for high-quality broadcast display in standard- and high-definition television formats.”

“As motion picture postproduction continues to migrate toward the digital realm,” Deame adds, “algorithms and software become more critical in improving image quality. Companies like Teranex and Kodak continue to add value by making these technologies available to a broad marketplace.”

The first Kodak algorithms to be integrated into Teranex products will be available in 2007.

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Please visit Teranex at IBC in Amsterdam September 8-12 in Hall 7, stand 7-930 to view the latest innovations from Teranex.

About Kodak (NYSE: EK)

For over a hundred years, Kodak has been providing tools for the creative community to tell their stories in motion, and is the world-class leader in providing film, digital and hybrid motion imaging products, services, and technology for the television, feature film, commercial, music video, and documentary industries. For more information about Kodak’s Entertainment Imaging Division, please visit www.kodak.com/go/motion .

About Teranex

Teranex, a Division of Silicon Optix, produces high performance, future-proof solutions for the digital media professional serving the content creation, content distribution, and content consumption markets. The industry-leading array processing platforms combine the flexibility of a programmable solution with the high-throughput of a real-time multi-use platform. Teranex solutions include DTV format conversion, video noise reduction, film restoration, pre/post compression processing and image enhancement. Teranex is continually adding enhancements and new applications and is committed to providing long-term value to its customers. For more information, please visit www.teranex.com

About Silicon Optix

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Silicon Optix Inc, a digital video platform company, is a leading supplier of advanced video/image processing integrated circuits (ICs) and systems. The Company’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 scaling and geometry processing. Its mission is to leverage these innovative technologies into ICs and video/film processing platforms that will enable the next generation of digital video/image capture, conversion, restoration, editing, storage, transmission, distribution, and display solutions. Silicon Optix is headquartered in San Jose, California, with operations in Orlando, Florida; Hannover, Germany; Shanghai and Shenzhen, China; Taipei, Taiwan and Toronto, Canada.
For more information about Silicon Optix, please visit the company’s Web site at www.siliconoptix.com and www.hqv.com .

Teranex/Silicon Optix Contact:

Mike Poirier
Director Marketing & Communications
(407) 858-6039
mike.poirier@siliconoptix.com

Kodak Contact:
Lisa Muldowney
Media Relations
(760) 438-5250
lisam@ccspr.com

Investor Relations:

Beverly Twing
Shelton IR
(972) 239-5119, ext. 126
btwing@sheltongroup.com

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