[0] DivXNetworks and Sigma Designs Announce Partnership to Bring MPEG-4 Video Beyond the PC.

SAN DIEGO & MILPITAS, Calif.--(BUSINESS WIRE)--Feb. 5, 2002

New REALmagic Xcard(TM) From Sigma Designs Enables Viewing of

High-Quality DivX(TM) Video on a TV

DivXNetworks, Inc., creators of the revolutionary patent-pending DivX MPEG-4 video compression technology, and Sigma Designs (Nasdaq:SIGM), the leader in silicon-based IP video streaming solutions, today announced a development and marketing partnership to further the ubiquity of high-quality MPEG-4 video content by enabling video playback on a variety of devices.

Under the agreement, the new REALmagic Xcard(TM) home theater accessory from Sigma will feature playback of high-quality DivX video. The two companies will jointly market the REALmagic Xcard, which is designed to enable viewing of movie clips on TVs, the community of more than 30 million DivX users. Often called the 'MP3 of video,' the newest DivX codec, DivX 4.12, averages over 2 million downloads per month, making it the most popular MPEG-4 compression technology currently available.

"This partnership will allow us to combine the unsurpassed quality and brand recognition of DivX with the innovative delivery technology developed by Sigma, bringing MPEG-4 video to consumers, encoding professionals and device manufacturers looking for the highest-quality DivX decode," said Jordan Greenhall, CEO and co-founder of DivXNetworks (www.divxnetworks.com). "Sigma continues to maintain a strong leadership position in the IP video industry, and their new home theater PC card is the ideal solution to deliver the quality and performance of DivX video from the PC to the TV."

"We are pleased to work with DivXNetworks, where they provide both a high-quality codec with full security and protection for the content involved. We created the REALmagic Xcard as the ultimate PC-based home theater solution, allowing consumers to easily enjoy their favorite video and audio applications from the comfort of their living rooms. High-quality MPEG-4 video is a very important part of that vision," said Ken Lowe, vice president of business development at Sigma Designs. "MPEG-4 clearly represents the new standard in digital video, and the popular DivX codec is positioned at the forefront of MPEG-4 consumer adoption."

In addition to DivX playback, the Sigma Designs' REALmagic Xcard supports DVD-Video, Video CD (VCD) and Super VideoCD (SVCD) playback and home audio system compatibility. The featured Sigma MPEG decoder allows hard disk drive savings with higher compression while maintaining video-image quality. For more information on the REALmagic Xcard, visit www.sigmadesigns.com.

Hailed as a "revolutionary product" by Tom's Hardware Guide, DivX MPEG-4 video compression technology has been downloaded over 30 million times, currently ranking as the fourth most popular application on CNET's Download.com and the most popular multimedia application. Providing DVD-quality video at 7-10 times greater compression, the DivX codec is the first MPEG-4 technology to achieve software-based full-resolution real-time encoding and high-definition resolution decoding. DivXNetworks complete video-on-demand product line includes a proprietary DivX Digital Rights Management (DRM) solution, which provides authentication, authorization, encryption, fingerprinting, multiple watermarking techniques and business rule management to ensure the protected delivery of IP video.

Sigma Designs is one of a number of DivX technology and content partners. For DivX commercial licensing inquires, e-mail [e-mail] or visit www.divxnetworks.com/.

About DivXNetworks

DivXNetworks is a leading technology company that enables the rapid proliferation of video content over Internet Protocol (IP) networks by combining the lightweight, ubiquitous access of the Internet with DVD-quality video performance. The company's approach is built upon the success of the DivX(TM) codec, a leading standard for MPEG-4 video distribution with over 30 million users worldwide, and the DivX Open Video System(TM), a secure next-generation content delivery system that provides unsurpassed aggregation, promotion and distribution of protected video content for mass markets. DivXNetworks is headquartered in San Diego, California, with satellite offices in New York and Los Angeles. For more information about DivXNetworks, visit http://www.divxnetworks.com.

About Sigma Designs, Inc.

Sigma Designs specializes in silicon-based MPEG decoding for streaming video, progressive DVD playback and advanced digital set-top boxes. The company's award-winning REALmagic(R) Video Streaming Technology is used in both commercial and consumer applications providing highly integrated solutions for high-quality decoding of MPEG-1, MPEG-2 and MPEG-4. Headquartered in Milpitas, Calif., the company also has sales offices in China, Europe, Hong Kong, Japan, Korea and Taiwan. For more information, please visit the company's web site at www.sigmadesigns.com/.

Note to Editors: REALmagic(R) is a registered trademark of Sigma Designs, Inc. REALmagic Xcard(TM) is a trademark of Sigma Designs, Inc. DivX(TM) Video and DivXNetworks are trademarks of DivXNetworks Inc. Other product and service names mentioned herein are the trademarks of their respective owners.