1. HDMI 1.3 Preview the Future of HD HDMI Licensing, LLC November, 2006

2. 2 Agenda  Market Overview  Overview of HDMI 1.3  Demonstration of 1.3 Functionality - Deep Color − Silicon Image  Demonstration of 1.3 Functionality - Dolby TrueHD − Dolby Labs  1.3 Products in the Market  Questions and Answers

3. 3 HDMI – Overview  HDMI is the de facto standard digital connection for consumer electronics products − HDMI delivers the highest-quality audio and video signal over a single cable  Over 460 manufacturers will ship nearly 60 million HDMI- enabled devices in 2006 with installed base of over ½ billion HDMI devices in 2009  HDMI continues to evolve to meet changing market needs − HDMI enables a dynamic CE market − Version 1.3 of the HDMI specification doubles overall bandwidth to deliver even higher quality video and audio signals

4. 4 462 109 83 128 160 199 237 274 297 365 417 Growth of HDMI Adopters Source: 10/2006, HDMI Licensing, LLC

5. 5 HDMI Adopters Worldwide Source: 10/2006, HDMI Licensing, LLC  462 licensees as of September 2006 − (Does not include 7 HDMI Founders)

6. 6 HDMI Shipments by Segment 278,795 200,764 123,638 59,814 17,419 5,008 24 Source: InStat DVI/HDMI Report, Dec 2005 67% CAGR 06 - 09)

7. 7 Installed Base of HDMI and DVI Products Source: InStat DVI/HDMI Report, Dec 2005 1,050,657,000 HDMI and DVI products in the market

8. 8 HDMI Market Trends 2006  2007  Decreasing price points for HDMI-enabled products − HDMI on all products, not just high end − US$70 for DVD player with up-scaled HDMI output − US$700 for 19” LCD-TV with HDMI input  Average number of HDMI inputs/outputs on devices increasing − DTVs: 1.45 HDMI ports in 2006, up from 1.30 in ports 2005  Mobile market adoption begins with Camcorders and Digital Still Cameras − Sony HD camcorder − Samsung DSC  Front/side panel HDMI inputs become standard − Mobile adoption drives for easy to connection to HDMI  HDMI 1.3 functionality will come to market (more on that later)

9. 9 HDMI Being Embraced by PC Market  HDMI available on all major graphics platforms − Desktop & notebook PCs; integrated & discrete graphics  HDMI PC products from major OEMs − Desktop Media PCs & Notebook PCs − Add-in graphics cards and motherboard (retail)

10. 10 Agenda  Market Overview  Overview of HDMI 1.3  Demonstration of 1.3 Functionality - Deep Color − Silicon Image  Demonstration of 1.3 Functionality - Dolby TrueHD − Dolby Labs  1.3 Products in the Market  Questions and Answers

11. 11 New HDMI Specification  HDMI 1.3 specification released in June 2006  Increased performance characteristics and expanded feature set  Developed to meet the evolving needs of the high-definition marketplace  Fully backwards compatible with all prior releases of HDMI and DVI specs

12. 12 1.3 - Next Gen HDMI Performance  Bandwidth more than doubled − From 165 MHz (4.95 Gbps) to 340 MHz (10.2 Gbps) − Technical foundation laid for further increases in speed  Delivers 3 new features − Deep Color Support 10/12/16-bit per pixel, 4:4:4 video − Faster Frame Rates Up to 120Hz (1080p), 240Hz (720p/1080i) − Higher Resolution Up to WQXGA (2560 x 1536), 1440p (2560 x 1440 @ 60 fps)

13. 13 HDMI 1.3 - New Features  Expanded Color Gamut − xvYCC standard supported (IEC 61966-2-4)  High Definition Audio − Dolby TrueHD and DTS-HD supported  Lip Sync − Each device discloses audio/video delay

14. 14 Agenda  Market Overview  Overview of HDMI 1.3  Demonstration of 1.3 Functionality—Deep Color − Silicon Image  Demonstration of 1.3 Functionality—Dolby TrueHD − Dolby Labs  1.3 Products in the Market  Questions and Answers

15. 15 What is Deep Color?  Billions of colors and stunning video  10-bit, 12-bit or 16-bit color depth  Over five times more colors than standard HDTV systems  Reduced on-screen color banding in areas with subtle gradations  More accurate reproduction of on-screen images in true life colors

16. 16 Deep Color Impetus  Each color more accurately represented  More bits = more exact reproduction  Human eye can perceive abrupt color changes  Example − Straight line is ideal − 2 bits = 4 colors − 4 bits = 16 colors Input value Display value

17. 17 Why support 16-bit color?  With RGB (or YCbCr), 10 bits per component will still show banding on a good contrast direct-view display  12 bits per component is absolutely necessary for no banding  Each video processing step (gamma, de-gamma, scaling, etc.) will degrade the color if the color depth is not permitted to expand for that operation  To retain a non-banding 12-bit signal through a series of processing steps will actually require as much as 16 bits per component

18. 18 Deep Color Benefits  Eliminates artifacts that appear as bands or contours − Most noticeable in subtle gradations and tonal transitions  Increases contrast ratios for sharper images & greater detail  More accurately represents original material − Deeper color palette produces video more like original film − Live events look more natural Simulated high-bit color depth Simplified example of tonal transitions with limited color palette Simplified example of tonal transitions with extended color palette Simulated low-bit color depth Color banding

19. 19 Silicon Image Deep Color Demonstration PC DVI 10-bit content created Content edited on PC and stored on RAID Array Fibre Optic Cable RAID Drive Dual SDI Cine-tal 24” MonitorDell 24” Monitor 10-bit video content captured with Sony HDC-F950 SDR 10-bit animation, 4:4:4 Video Playback 10-bit video streaming from HUGE dual channel, 4Gbit HDDs 10-bit Display: 10-bit video into Cine-tal 2122 10-bit monitor via dual HD-SDI cables 8-bit Display: 8-bit video into Dell 24" 1920 x 1024 8-bit monitor via DVI cable

20. 20 Silicon that Supports Deep Color is Available Now  SiI9134 HDMI Transmitter − Designed for Blu-ray & HD-DVD players − Compatible with HDMI 1.3 specification − Supports 1080p at 60Hz with 12-bit color depth − Built-in HDCP encryption engine

21. 21  SiI9133 HDMI Receiver − Designed for rear projection DTV, LCD-TV, plasma displays and front projectors − Compatible with HDMI 1.3 specification − Supports 1080p at 60Hz with 12-bit color depth − Built-in HDCP encryption engine Silicon that Supports Deep Color is Available Now

22. 22 Agenda  Market Overview  Overview of HDMI 1.3  Demonstration of 1.3 Functionality - Deep Color − Silicon Image  Demonstration of 1.3 Functionality - Dolby TrueHD − Dolby Labs  1.3 Products in the Market  Questions and Answers

23. 23 TheAudio Land The Audio Landscape is Changing Next Generation Optical Formats Feature Greater Storage Capacity Higher storage capacity of Next Generation Optical Media creates new opportunities for higher quality, more channels and flexibility of performance High Efficiency Audio and Video Codecs Play A Key Role in HD Broadcasting Broadcasters seek greater efficiencies in audio and video coding and delivery in order to maximize HD content delivery `

24. 24 Expanded Bitrates and More Channels mono 5.113.17.1 2.0 Dolby Digital Plus mono5.12.0 Dolby Digital 32k64k384k3M Bitrate bps  Higher bitrates support more channels and higher quality  Higher efficiency coding tools for lower bit rates 640k

25. 25 Introducing  100% Lossless audio 100% of the time  Audio performance that is bit-for-bit identical to studio masters  Expanded data rate and frame structure flexibility − Up to 18Mbps and 14 channels if needed in the future  Support for 192 kHz sampling rate and 24-bit word length − Stereo and multi-channel applications  Variable bit rate (VBR) encoding  New metadata capabilities

26. 26 32k64k384k3M Bitrate bps 640k 6M18M10M 2.0 5.17.1mono Dolby TrueHD Dolby TrueHD bitrate range mono 5.17.12.0 Dolby Digital Plus mono 5.1 2.0 Dolby Digital Mono

27. 27 First Generation Players Include Decoding and Mixing Functionality Player Mixer module 6 PCM 5.1-ch decode Mixer Gain Button sounds Pan Main soundtrack Commentary 2-ch decode DAC ANALOG OUTPUTS 5.1 Dolby Digital 640 kbps Dolby Digital 5.1 encode Metadata

28. 28 Player Mixer module 6 PCM (HDMI) 5.1-ch decode Mixer Gain Button sounds Pan Main soundtrack Commentary(Ethernet) 2-ch decode DAC ANALOG OUTPUTS Future Players Will Offer Bitstream Output Of High Resolution Audio 5.1 Dolby Digital 640 kbps (S-PDIF) Dolby Digital 5.1 encode Metadata Bitstream bypass option Main Soundtrack (HDMI 1.3) “Audiophile Feature” On Next Generation Formats

29. 29 HDMI Audio Applications HDMI 1.1HDMI 1.2HDMI 1.3 Dolby Digital Bitstream DVD Audio PCM* Dolby Digital Bitstream DVD Audio PCM* SACD Dolby Digital Plus Bitstream Dolby TrueHD Bitstream Dolby Digital Bitstream DVD Audio PCM*

30. 30 Connection to digital AVR via S/PDIF S/PDIF Connection Output as 5.1-ch Dolby Digital 640 kbps bitstream HDHD HD Player Soundtracks decoded and mixed in multi-ch PCM Re-encoded as a 640kbps Dolby Digital signal AV Receiver D DOLBY DIGITAL Note: FLP display reflects Encoder being utilized

31. 31 AV ReceiverHD Player Soundtracks decoded and mixed in multi-ch PCM 6 (or 8) ch Line Level Connection J PRO LOGIC IIx Output as a 6 (or 8) ch Line Level Analog Signal HDHD Connection to AVR via multichannel analog input

32. 32 AV Receiver HDHD HD Player J PRO LOGIC IIx HDMI 1.3 Connection Soundtracks decoded and mixed in multi-ch PCM or Bitstream from disc Processing of PCM signal or Decoding of native bitstream on disc Connection to current digital AVR via HDMI

33. 33 Concluding Thoughts  Dolby TrueHD is High Definition Sound  100% lossless audio playback 100% of the time  Audio resolution that—upon playback—is bit-for-bit equal to studio masters  More channels and higher quality  Broadcast as well as HD Disc capabilities  New standard for quality in multi-channel lossy audio performance  Dolby Digital Plus delivers audio resolution better than DVD-Video  Up to 8 full bandwidth channels in Next Generation Optical Formats  Supports 24-bit 192kHz

34. 34 Benefits of HDMI 1.3  Recognized Industry Standard For Next Generation Connectivity  Bandwidth to Transport Dolby Digital Plus and Dolby TrueHD Bitstreams to AVR  Supports PCM and legacy bitstream formats  Future AVR Connectivity to STBs and other devices equipped with: − Dolby Digital Plus or Dolby TrueHD

35. 35 Agenda  Market Overview  Overview of HDMI 1.3  Demonstration of 1.3 Functionality - Deep Color − Silicon Image  Demonstration of 1.3 Functionality - Dolby TrueHD − Dolby Labs  1.3 Products in the Market  Questions and Answers

36. 36 PS3 First to Adopt HDMI 1.3! “By introducing the next-generation HDMI 1.3 technology, with its high speed and deep color capabilities, PS3 will push the boundaries of audiovisual quality to the next level of more natural and smoother expression on the latest large flat panel displays.” − Ken Kutaragi President and group CEO of Sony Computer Entertainment, Inc.

37. 37 Other 1.3 Products Announced Epson EMP-TW1000 Full HD (1080p) 1920x1080 resolution image across that 2.1x optical manual zoom lens and the inclusion of HDMI 1.3 to pump pixels at up to 340Mpixels/sec in support of 16-bit color depth and lossless audio streams. Chi Mei Optoelectronics 47-inch, 1440p LCD that supports dual-link DVI and HDMI 1.3, both of which are able to accommodate the WQXGA. Toshiba “The flagship HD-XA2 will incorporate the new 1.3 version of the HDMI spec,” said Jodi Sally, Toshiba A/V products group marketing VP, “and will output high-definition in all major formats including 1,920 by 1,080p.” Expect to see many source, display and A/V receiver products with HDMI 1.3 announced at CES in January of 2007

38. 38 Agenda  Market Overview  Overview of HDMI 1.3  Demonstration of 1.3 Functionality - Deep Color − Silicon Image  Demonstration of 1.3 Functionality - Dolby TrueHD − Dolby Labs  1.3 Products in the Market  Questions and Answers

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