• Combination Creates Global Leader in Wired and Wireless Connectivity Solutions
• Expands Addressable Opportunities in Consumer, Industrial and Communications Markets
• Identified Synergies of $32 Million; Expected to be Immediately Accretive to EPS on Non-GAAP Basis

HILLSBORO, Ore. & SUNNYVALE, Calif. — (BUSINESS WIRE) — January 27, 2015 — Lattice Semiconductor Corporation (NASDAQ: LSCC), a leading provider of programmable connectivity solutions, and Silicon Image, Inc. (NASDAQ: SIMG), a leading provider of wired and wireless connectivity solutions, today announced that they have signed a definitive agreement, pursuant to which Lattice will acquire Silicon Image in an all-cash tender offer of $7.30 per share, representing an equity value of approximately $600 million (or approximately $450 million on an enterprise value basis) and a 34.6% premium to the average closing price over the last 90 trading days and a 23.7% premium to the closing price on January 26^th.

Key Benefits of the Transaction

• Increased Strategic Relevance for Customers
  • Allows combined entity to drive early collaboration during product design and ultimately deliver optimized ASSP solutions, resulting in deeper, more meaningful relationships with customers
• Revenue Expansion Opportunities
  • Increased market presence and combined product offering will result in greater lifetime revenue opportunities
• Strong Combined IP Portfolio
  • Proprietary low-power, small form factor and low-cost FPGA technology enables programmable connectivity in a broad range of markets
  • Leading provider of IP with proven implementations for worldwide standards
• Creates Economies of Scale With Meaningful Synergies
  • Expected to be immediately accretive on a non-GAAP basis through efficiencies in operating expenses and supply chain
  • At least $32 million in annual synergies which are expected to be realized within one year after the closing of the transaction

Darin G. Billerbeck, Lattice Semiconductor’s President and Chief Executive Officer, said, “This is a truly transformative event for both Lattice Semiconductor and Silicon Image. For the first time in the semiconductor industry, a single company will combine the design flexibility and time to market benefits of FPGAs, with the highly integrated, function and cost optimization benefits of ASSP solutions. We are excited to move forward with Silicon Image and confident we will be able to drive higher revenue and earnings growth, through the benefits of better economies of scale and material cost synergies. We expect this transaction to be immediately accretive on a non-GAAP basis.”

Camillo Martino, Chief Executive Officer of Silicon Image, commented, “We are excited to move forward with this unique business combination. Lattice’s management team has a strong track record of execution and operational excellence, both critical to the continued expansion of our product portfolio and ability to support our customer’s evolving requirements. Importantly, Lattice shares our commitment to building upon Silicon Image’s rich history of standards creation and the development of new wired and wireless connectivity innovations. This transaction is the culmination of a strategic process conducted under the direction of our board of directors, and represents a significant creation of value for our shareholders.”

Mr. Billerbeck concluded, “Lattice created the market for programmable connectivity solutions in the consumer market, capitalizing on our strong foothold in the communications and industrial markets. Silicon Image has successfully established numerous global technology standards, and built a highly valued intellectual property portfolio in wired connectivity, millimeter wave wireless technology and software services solutions. Our respective technical capabilities, product portfolios and visions for the future are complementary and will be even more powerful when combined. Lattice is fully committed to building upon the foundation established by Silicon Image in helping establish industry standards, investing in new technologies and driving them to market, which in turn should provide us with greater access to our customers’ roadmaps and unique insight into their product development.”