Many of you may have seen an email today with the subject line of "Welcome to the Zacks Elite" which referenced the stock PXLW. Unfortunately this is not a legitimate email communication or solicitation from Zacks Investment Research, Inc. or Zacks.com or any other Zacks entity. It is, rather, a form of a "phishing" email as well as a fraudulent attempt to induce you to purchase the stock referenced in the original email you received. It's important to note that this fraudulent email does NOT represent any breach of ANY of Zacks systems, servers or databases. The spammers only used our brand and replica of email format to make their message seem legitimate as is too often done with other well known brands such as eBay, Amazon and Citibank. We are extremely sensitive to spamming and it is not a business practice of ours. We sincerely apologize for any inconvenience or concern this may have caused you. Rest assured that Zacks Investment Research and Zacks.com will always respect your privacy and will continue to provide the highest quality stock research and commentary available. The text of the unauthorized email follows below. Best, Charles Rotblut, CFA Senior Market Analyst and Editor, Zacks Investment Research

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ZACKS.COM PROFIT from the PROS ** Tactics that Work in Good and Bad Markets . Pixelworks Inc. (PXLW) prompt recovery on Monday 30/07/2007.

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Dear Subscriber, Yesterday's 311-point drop reflects a further reversal from the complacency that has characterized market activity for an extended period of time. While nobody likes big daily declines, the action of the past few days is pretty normal from a historical standpoint. The recent drop in the major indexes and the recent rise in oil prices are both being driven more by emotion than a change in fundamentals. The good news is that companies, on average, are exceeding earnings expectations. The economy is growing. In other words, the sun is still shinning.

Wishing you prosperity,

Charles Rotblut,

CFA Senior Market Analyst and Editor,

Profit from the Pros

Zacks.com

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1) ZACKS RANK BUY STOCKS

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Zacks #1 Rank stocks average a 122.6 % profit p/a. Every day on Zacks.com we highlight four new Zacks Rank Buy stocks. Each individual stock is chosen based on how well they match the criteria for the four main schools of

investing: Aggressive Growth, Momentum, Growth & Income and Value.

Aggressive Growth - Pixelworks Inc. (PXLW)

Pixelworks Inc. (PXLW) price had fallen 25/07/2007 due to panic of PXLW investors, caused by some "erroneous sell orders" as Nasdaq says executed by mistake just day before Earnings Call.

As a result: NASDAQ Cancels Erroneous Trades in Pixelworks Stock, Business Wire (Wed, Jul 25) and PXLW price remain Low:

Read more at http://www.zacks.com/research/get_news.php?id=207r6341&t=PXLW

http://biz.yahoo.com/bw/070725/20070725006456.html?.v=1

Jul 26, 2007 16:04 Pixelworks Collaborates with ASUSTeK to Deliver

Superior Video Processing in PC Products Read more.... http://www.zacks.com/research/get_news.php?id=207b1487&t=PXLW

Jul 26, 2007 16:05 Pixelworks Reports Second Quarter 2007 Financial

Results; Revenue up 12 Percent Sequentially Read more... http://www.zacks.com/research/get_news.php?id=207b1497&t=PXLW

Jul 27, 2007 10:38 Pixelworks Team with ASUSTeK to Supply Video

Processing in PC Products

Read more... http://www.zacks.com/research/get_news.php?id=208g0258&t=PXLW

Positive points:

- Very probable merger with (GNSS) $8.00 Zacks Target Price. PXLW has establish a large, inexpensive design team in Shanghai which will help GNSS compete on low cost products coming out of China.

- More than 5 mln PXLW shares are bought an held by Hedge Funds and insiders/management. Large Buys last days.

- The company anticipates third quarter revenue of $26.5 M to $28.5 M

- New ASUSTek partnership !

Now PXLW is strongly undervalued.Average edxpected price on Monday is $2.43

Zacks Premium Research

Zacks Rank

3

Zacks Recommendation

BUY

Zacks Target Price

$5.00

Zacks Industry Rank

138 out of 217

Rank in Industry

22 out of 119

Zacks Equity Research Report

The Zacks Recommendations and Zacks Target Prices are just two of the valuable resources you'll find in the reports created by the Zacks Equity Research group. When Zacks Premium members click on this link they will taken to a page that gives them access to the Zacks Equity Research report for the stock.

BROKERAGE RECOMMENDATIONS

Current ABR 3.17

ABR (Last Week) 3.17

# of Recs in ABR 6

Average Target Price 2.44

Industry Rank by ABR 115 out of 217

Rank in Industry 112 out of 125

For more details Zacks Elite Rank Homepage at http://www.zacks.com/research/report.php?type=main&t=PXLW

Regards and Happy Investing,

Charles Rotblut,

CFA Senior Market Analyst

Zacks.com

p.s. What is the mission for Zacks Profit from the Pros?

To find out how we will help you become a more successful investor, visit http://www.zacks.com Zacks Rank performance is the total return (price changes + dividends) of equal weighted portfolios, consisting of those stocks with the indicated Zacks Rank, assuming zero transaction costs. These returns are not the result of a backtest; these are actual returns since 1988. The stocks in the Zacks Rank portfolios were available to Zacks clients before the beginning of each month (monthly rebalancing).

Performance results from 1988 through September 2006 are based on a subset of all Zacks Rank stocks that excludes stocks covered by only one analyst and ADR's. The S&P 500 Index is a well-known, unmanaged index of the prices of 500 large-company common stocks, mainly blue-chip stocks, selected by Standard & Poor's. The S&P 500 Index assumes reinvestment of dividends but does not reflect advisory fees. An investor cannot invest directly in an index.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

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