PIXELWORKS, INC — Director's Dealing 2007

May 23, 2007

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: PIXELWORKS, INC (PXLW)
CIK: 0001040161
Period of Report: 2007-05-22

Reporting Person: ALLEY ALLEN H (Director)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2007-05-22	Non-Qualified Stock Option (right to buy)	$1.38	A	10000	Acquired	2017-05-22	Common Stock (10000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	1810683	Direct

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Incentive Stock Option (right to buy)	$0.26	2009-01-20	Common Stock (33750)	33750	Direct
Incentive Stock Option (right to buy)	$16.5	2012-01-02	Common Stock (7164)	7164	Direct
Incentive Stock Option (right to buy)	$22.063	2011-01-02	Common Stock (19589)	19589	Direct
Non-Qualified Stock Option (right to buy)	$5.02	2016-02-15	Common Stock (50000)	50000	Direct
Non-Qualified Stock Option (right to buy)	$7.57	2013-01-31	Common Stock (100000)	100000	Direct
Non-Qualified Stock Option (right to buy)	$9.48	2015-03-04	Common Stock (100000)	100000	Direct
Non-Qualified Stock Option (right to buy)	$15.41	2014-03-09	Common Stock (100000)	100000	Direct
Non-Qualified Stock Option (right to buy)	$16.5	2012-01-02	Common Stock (92836)	92836	Direct
Non-Qualified Stock Option (right to buy)	$22.063	2011-01-02	Common Stock (30411)	30411	Direct

Footnotes

F1: 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.

F2: The options become exercisable over a 4-year period which commenced on January 31, 2000, as follows: 8,438 shares exercisable as of January 31, 2000, 703 shares exercisable every month thereafter for 35 months and 707 shares exercisable on January 31, 2003.

F3: The options become exercisable on a monthly basis over a 4-year period which commenced on January 31, 2002, as follows: 10% exercisable as of January 31, 2003, 20% exercisable as of January 31, 2004, 30% exercisable as of January 31, 2005 and 40% exercisable as of January 31,2006.

F4: The options become exercisable on a monthly basis over a 4-year period which commenced on January 31, 2001, as follows: 10% exercisable as of January 31, 2002, 20% exercisable as of January 31, 2003, 30% exercisable as of January 31, 2004 and 40% exercisable as of January 31,2005.

F5: The options become exercisable on a monthly basis over a 4-year period which commences February 15, 2006, as follows: 10% exercisable as of February 15, 2007, 20% exercisable as of February 15, 2008, 30% as of February 15, 2009 and 40% exercisable as of February 15, 2010.

F6: The options become exercisable on a monthly basis over a 4-year period which commenced on January 31, 2002, as follows: 10% exercisable as of January 31, 2003, 20% exercisable as of January 31, 2004, 30% exercisable as of January 31, 2005 and 40% exercisable as of January 31,2006.

F7: The options become exercisable monthly over a 4-year period which commenced on March 4, 2005, with 10% becoming exercisable by March 4, 2006, 20% becoming exercisable by March 4, 2007, 30% becoming exercisable by March 4, 2008, and 40% becoming exercisable by March 4, 2009.

F8: The option becomes exercisable on a monthly basis over a four year period which commences on March 31, 2004 as follows: 10% exercisable as of March 31, 2005, 20% exercisable as of March 31, 2006, 30% exercisable as of March 31, 2007, and 40% exercisable as of March 31, 2008.