PIXELWORKS, INC — Director's Dealing 2007

Mar 7, 2007

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: PIXELWORKS, INC (PXLW)
CIK: 0001040161
Period of Report: 2007-03-05

Reporting Person: Hess Damon M (Vice President Sales)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2007-03-05	Non-Qualified Stock Option (right to buy)	$1.86	A	100000	Acquired	2017-03-05	Common Stock (100000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	9117	Direct

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Non-Qualified Stock Option (right to buy)	$2.03	2017-02-12	Common Stock (22000)	22000	Direct
Non-Qualified Stock Option (right to buy)	$2.49	2013-12-04	Common Stock (13175)	13175	Direct
Non-Qualified Stock Option (right to buy)	$4.65	2016-02-08	Common Stock (30000)	30000	Direct
Non-Qualified Stock Option (right to buy)	$6.46	2013-07-23	Common Stock (5000)	5000	Direct
Non-Qualified Stock Option (right to buy)	$8.249	2012-06-03	Common Stock (4000)	4000	Direct
Non-Qualified Stock Option (right to buy)	$8.5	2011-04-02	Common Stock (10000)	10000	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: Options become exercisable over 18 months as follows: 33.3% on June 30, 2007 and 66.7% becoming exercisable at a rate of 5.56% on a monthly basis thereafter over 12 months, or through June 30, 2008.

F3: 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.