Pixelplus Obtains Complete Victory in the Seoul Central District Court on the Disputed Process Patents Claimed by MagnaChip

16 February 2007

Pixelplus Co., Ltd. (Nasdaq: PXPL), a leading fabless semiconductor company in Korea that designs, develops, and markets CMOS image sensors for various consumer electronics applications, today announced it obtained a completely positive and affirmative ruling in the patent infringement proceedings from the Seoul Central District Court ("Seoul Court") on the disputed color filter and contact hole process patents claimed by MagnaChip Semiconductor ("MagnaChip").

In October 2006, Pixelplus announced a separate favorable development in Seoul Court when it reported that MagnaChip's claims on the disputed photo diode and sensor patents were completely withdrawn from MagnaChip's complaint.

Turning to the patent cancellation and invalidation proceedings in the Patent Court, in December 2006, MagnaChip filed an appeal to reverse the ruling on the disputed contact hole process patent, which was effectively cancelled and invalidated by the Intellectual Property Tribunal of the Korea Intellectual Property Office ("KIPO"). In January 2007, the Company filed an appeal to obtain a positive ruling on the disputed color filter patent, which was not cancelled or invalidated by KIPO.

As the Company remains highly confident, it believes MagnaChip's additional claims and appeals are without merit and will continue to execute all necessary actions to vigorously oppose them.

About Pixelplus Co., Ltd.

Pixelplus is a South Korea-based developer of high-performance, high- resolution, and cost-effective CMOS image sensors for use primarily in mobile camera phones. In addition to mobile phones, Pixelplus provides CMOS image sensors and SoC solutions for use in webcams and notebook embedded cameras, toys and games, and security and surveillance system applications.

As a fabless semiconductor company, Pixelplus is focused on creating proprietary design technologies to develop CMOS image sensors with sharp, colorful and enhanced image quality, size efficiency, and low power consumption.

Forward Looking Statement

This press release contains certain statements that are not historical in nature but are "forward-looking statements" within the meaning of the "safe- harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the use of forward- looking terminology, such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "project," or "continue" or the negative of such words or other similar words. Pixelplus cautions readers that forward-looking statements are based on the Company's current expectations, estimates and assumptions about our company and our industry, and are subject to a number of risks and uncertainties. Actual results may differ materially from those contained in such forward-looking statements. Investors are directed to Pixelplus' reports and documents filed from time to time with the U.S. Securities and Exchange Commission for a description of various factors that should be considered before investing in Pixelplus securities. These factors may cause Pixelplus' results to differ materially from the forward-looking statements made in this release. The forward-looking statements speak only as of the date of this press release and Pixelplus assumes no duty or obligation to update them to reflect new, changing, or unanticipated events or circumstances.

Contact:

Shane Y. Hong

Pixelplus Co., Ltd.

5th Floor, Intellige I, KINS Tower

25-1 Jeongja-dong, Bundang-gu, Seongnam-si

Gyeonggi-do 463-811, Republic of Korea

+82-31-600-5300

Taylor Rafferty:

London - Melanie Ashworth at +44 (0) 20 7614 2900

New York - Allon Bloch at +1 212 889 4350

Seoul - Jisook Shim at +82 (0) 2 2000 5753

Tokyo - Yuhau Lin at +81 (0) 3 5444 2730