PIXELWORKS, INC — Director's Dealing 2006

Dec 21, 2006

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: PIXELWORKS, INC (PXLW)
CIK: 0001040161
Period of Report: 2006-12-04

Reporting Person: Simon Anthony R (Vice President, Marketing)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2006-12-04	Non-Qualified Stock Option (right to buy)	$2.49	A	100000	Acquired	2016-12-04	Common Stock (100000)	Direct

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Non-Qualified Stock Option (right to buy)	$4.65	2016-02-08	Common Stock (15000)	15000	Direct
Non-Qualified Stock Option (right to buy)	$7.69	2015-08-22	Common Stock (60000)	60000	Direct

Footnotes

F1: Becomes exercisable on a monthly basis over 3 years, commencing the last day of the month of the date of grant.

F2: The options become exercisable on a monthly basis at a rate of 10% in year 1, 20% in year 2, 30% in year 3 and 40% in year 4, which commences on the last day of the month the option is granted.

F3: 25% becomes exerciseable on the first anniversary of the date of grant, with the remaining 75% becoming exerciseable ratably on a monthly basis beginning the day after the first anniversary and ending on the fourth anniversary of the date of grant.