1. Oracle Internal Controls Manager Krista Ladd

2. Silicon Image Confidential2 Silicon Image, Inc. Semiconductor company located in Sunnyvale – A leader in multi-gigabit semiconductor solutions for the secure transmission and storage of rich digital media Stats: – Revenue = $105 million in 2004 – Headcount = 350 people – Clean 404 Opinion for 2004 Oracle ERP – 90 day implementation – live May 2, 2003 – Financials, Order Management, Manufacturing, OSFM, HR, Purchasing, Portal….

3. Silicon Image Confidential3 Why SIMG Chose Oracle ICM over Competitors Oracle had partnered with large accounting firms to create the software – This made us confident that auditor requirements would be included in the core functionality The integration tools of ICM work well with our existing Oracle ERP environment. – Linking processes to key accounts in the GL – Workflow with approvals Our users have Oracle easily accessible to them now and already have a familiarity with the system, navigation and support process.

4. Silicon Image Confidential4 ICM Deployment Status Purchased product in Q3-2004 but decided to postpone implementation until 2005 – Majority of documentation already complete with manual process – Internal functional resources were not available Used Segregation of Duty violation reporting in 2004 – Found issues internally before auditors and were able to remediate effectively

5. Silicon Image Confidential5 ICM Deployment Status Deploying ICM for 2005 certification – Business users are actively implementing this quarter and will use ICM for Q2 testing and retroactively enter Q1 results into ICM Benefits of the delayed implementation: – Better understanding of auditor requests (reports, etc.) and terminology – Oracle development continually upgrading to meet all the audit requirements and we can benefit from these For example, IT Audit and enhanced reporting are available in AMW.C / 11.5.10

6. Silicon Image Confidential6 Partners Used Price Waterhouse Coopers was our auditing firm – PwC was very impressed with our use of Oracle ERP to automate as many controls as possible – with more coming in 2005 For example, Journal Approval, iExpense, iProcurement and created numerous Oracle Alerts as compensating controls Also, hired Horn Murdock Cole consulting for our internal audit function – Worked with BPO’s to create documentation and performed internal testing & remediation

7. Silicon Image Confidential7 ICM Lessons Learned Requires major functional support resources – Sarbanes-Oxley is complicated and a typical IS/IT employee cannot fully understand how it all flows together – The set-up is pretty easy from a technical perspective – most of the set-up time is spent working with the functional user identifying their documentation strategy and requirements.