The Company's new second generation PlusPixel(TM) SoC image sensors have a minimum pixel size of 2.2 micron and deliver digital still camera image quality based on Pixelplus' proprietary pixel design and know-how acquired through its development of CMOS and charged-coupled-device image sensors. The process and technology adopted in the PlusPixel(TM) SoC image sensors will allow mobile phone manufacturers to design small form factor camera modules, which will be very useful and attractive in the increasingly popular ultra-thin mobile camera phone markets.

"We have actively engaged in joint development efforts with a world leading foundry and those efforts have culminated in the development of our new PlusPixel(TM) technology," said Dr. Sang-Soo Lee, Chief Technology Officer of Pixelplus. "We are very pleased with the initial performance of the 2.2 micron and 2.6 micron PlusPixel(TM) SoC image sensors using 0.13 micron process technology with improved image quality of under low light conditions and expect that these image sensors will have a strong impact on the mobile camera phone market in the near future. Based on that expectation, we will work aggressively to gain market share with our new PlusPixel(TM) SoC image sensor products."

The new PlusPixel(TM) SoC image sensors incorporate an on-chip regulator, a high-speed serial interface, and an integrated auto focus function, as well as incorporate image processing engines such as color interpolation, auto white balance, color correction, gamma correction, and auto exposure. The on-chip regulator allows a single 2.8 volt operation to reduce the overall cost of the camera module solution. With a two-wire serial interface, the SoC products based on PlusPixel(TM) technology can be easily programmed to control operating modes with respect to exposure time, frame rate, window size, scaling, sub-sampling, and color matrix to achieve high quality images in any operating environment. The Company plans to offer its new PlusPixel(TM) SoC image sensors in chip-on-board and chip-scale-packaging to support various mobile phone applications and expects that these new image sensors will be available for sampling and volume production in the second half of 2006.

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 for use in personal computer cameras and surveillance system applications.

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

Forward-Looking Statement

This press release contains certain statements, including statements regarding the performance, achievements and capabilities of and demand for the PlusPixel(TM) SoC image sensor, 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. These risks and uncertainties, which could cause the forward-looking statements and Pixelplus' results to differ materially, include, without limitation: potential errors, design flaws or any other problems with the PlusPixel(TM) SoC image sensor; risks associated with building customer acceptance of and demand for the PlusPixel(TM) SoC image sensor; the development of the market for CMOS image sensors in the camera phone market, as well as in markets for other mobile applications incorporating image sensors; the rapid changes in technical requirements for camera phone products; competitive risks; as well as any other risks detailed from time to time in Pixelplus' filings and reports to the U. S. Securities and Exchange Commission. Pixelplus expressly disclaims any obligation to update information contained in any forward-looking statement whether as a result of new information, future events or otherwise.

    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

             OR

             Taylor Rafferty:
             London - Erin Gordon at +44 (0)20 7614 2900
             New York - Luis Severiano at +1 212 889 4350
             Seoul - Min Kim at +82 (0)2 2000 5753
             Tokyo - Yuhau Lin at +81 (0)3 5733 2620
             Email Email Contact

CONTACT: Shane Y. Hong of Pixelplus Co., Ltd., +82-31-600-5300; or Taylor
Rafferty: London - Erin Gordon, +44-20-7614 2900, or New York - Luis
Severiano, +1-212-889-4350, or Seoul - Min Kim, +82-2-2000-5753, or Tokyo -
Yuhau Lin, +81-3-5733-2620, or Email Contact