LG Electronics Selects Techwell's TW9919 3D Video Decoder for Integrated HDTV Solutions

Techwell, Inc. (Nasdaq: TWLL) a leading designer of mixed signal video semiconductor solutions for the consumer electronics, security surveillance, and automotive industries, today announced that LG Electronics, Inc., one of the leading global manufacturers of consumer electronics, has designed Techwell's TW9919 3D video decoder into their latest integrated HDTV product line, the SuperSlim CRT. LG is currently in mass production of its SuperSlim CRT (Cathode Ray Tube) products with screen sizes ranging from 17" to 32" and intends to distribute these across the world including Asia, North America and Europe.

Techwell's TW9919 is a high quality 3D NTSC/PAL/SECAM video decoder that is designed for digital video applications and can be used across multiple Advanced TV platforms including LCD, Plasma, Projection and CRT. TW9919 integrates an advanced 3D comb filter for NTSC and PAL and can perform 3D noise reduction simultaneously. The TW9919 also supports all popular analog video inputs including composite, S-Video, Component (YPbPr) and SCART and uses high quality 10-bit A-to-D converters.

LG's 32-inch SuperSlim digital TV series (model: 32FS1D, 32F5SD, 32F6SD), remarkably shortened the existing CPT (Color Picture Tube)'s length of 500 mm to the world's shortest of 20cmm. This sleek and space-saving product design is expected to go well with the modern lifestyle of today's consumers transitioning from the current CRT-TVs. The high performance HDTV has a built-in DVB STB and utilizes LG's 5th generation VSB receiver. It delivers the world's best receiving rate performance on the market today. Techwell's TW9919 enables a superior 3D-comb filter within LG's SuperSlim TV series including up-conversion of High Definition digital video from any input signal while supporting all AFC formats. Available in a wide screen format aspect 16:9; LG's new CRT TVs offer Dolby Digital, SRS True surround XT, EPG service, and digital surround audio output (10W + 10W).

"We are proud to have worked with LG on a number of projects over the last several years and think the adoption of our TW9919 into the LG HDTV solution is another key milestone to building a long term relationship," said David Nam, Vice President of Sales and Marketing, Techwell Inc. "We believe the TW9919 3D video decoder offers the highest performance at the most effective price in the market. LG Electronics continues to capitalize on our excellent video processing and we are excited to be working with them again on this new project."

"While we were still in the design phase of our latest range of integrated HDTV solutions, we came to the conclusion that Techwell's TW9919 3D video decoder would be the ideal component to use," said Sang Keun Bae, Project Leader Slim CRT TV Group, LG Electronics. The Techwell 3D comb performance and weak signal performance is the major reason we selected the TW9919. The hard work that Techwell has put into providing prompt and efficient technical support was another contributing factor to selecting them."

Pricing and Availability

Techwell began volume production of the TW9919 in the second quarter of 2005. Manufactured by TSMC in Taiwan, the TW9919 utilizes a 128-pin PQFP package. Please contact a local Techwell sales representative for pricing and availability.

About LGE

LG Electronics (KSE: 06657.KS) is a global leader in providing cutting-edge, convergent electronics, information and communications products designed to meet the diverse needs of fast-changing consumers. With consolidate sales of US $37.7 billion and overseas sales of US $32.6 billion (86% of total sales), LG Electronics employs more than 70,000 employees in 76 subsidiaries located in 39 countries and operates four business units including Mobile Communications, Digital Appliance, Digital Display and Digital Media. LG Electronics' goal worldwide is to create and enable the intelligent networking of digital products that will make consumers' lives better than ever. For more information please visit http://www.lge.com.

About Techwell

Techwell is a fabless semiconductor company that designs, markets and sells mixed signal integrated circuits for multiple video applications in the consumer, security surveillance and automotive markets. Techwell designs both general purpose and application specific products that enable the conversion of analog video signals to digital form and perform advanced digital video processing to facilitate the display, storage and transport of video content. Headquartered in San Jose, CA, Techwell currently has over 80 employees in the U.S., Korea, Taiwan, China and Japan. Please visit http://www.techwellinc.com for more information.

Media Contact: Sabrina Joseph

Morphoses

Public Relations & Marketing Firm

408-726-1577

techwellpr@morphoses.com

Forward-looking Statements

This press release may contain information considered to be forward- looking and reflects management's current expectations. These forward-looking statements may be identified by terminology such as may, will, could, should, anticipate and expect and the negative of these terms or other similar expressions. These are statements that relate to future events and include, but are not limited to the success of the TW9919 and our ongoing relationship with LG Electronics, as well as the migration by future customers to Techwell's next generation video decoders. We remind you that these statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others: our ability to identify and retain key customers; our ability to anticipate consumers' desires and design new products that incorporate feature sets that are attractive to our customers; our ability to manage and maintain our suppliers; our dependence on key employees; and other risk factors. Please refer to our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 14, 2006 for a more detailed description of some of these and other risks and uncertainties that could affect our performance or achievements. You should not place undue reliance on these forward-looking statements. Statements in the release are based upon information known to Techwell as of the date of this release, and Techwell assumes no obligation to update this information contained in this release.

NOTE: Techwell and the Techwell logo are trademarks of Techwell. All other trademarks are the property of their respective owners.

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