CES 2005 Shows Off More Than 15 New Consumer Products Based On Sigma Media Processors.

MILPITAS, Calif. -- Sigma Designs (Nasdaq:SIGM), a leader in digital media processing for consumer appliances, today announced that the Consumer Electronics Show (CES 2005) was home for more than 15 new consumer products based on the company's media processors, evidencing the momentum developed by its industry-leading technology. New products included several models of digital media receivers, premium DVD players, HDTV televisions and portable media players.

"New products demonstrated at CES provide a strong indication of the type of consumer demand expected to ramp during the coming year," said Ken Lowe, VP of strategic marketing, Sigma Designs, Inc. "Sigma is pleased to have its media processors integrated into some of the most exiting products of the show."

Several new products powered by Sigma's WMV9 capable EM8620L media processor emerged on the scene at CES 2005, which included demonstrations from:

--Buffalo, showed its latest LinkTheater DVD media player, which features support for WMV9 format, as well as wireless networking.

--DaveTV, showed its Internet based media solution that enables users to download, manage and watch media entertainment on demand.

--DigiOn, showed a new digital media receiver platform that features their DiXiM Media Client software.

--Digital Cube, showed a second generation of their iStation portable media player that adds WMV9 video support to its polished design.

--D-Link, showed their next generation of networked media players, including a new version of their MediaLounge Wireless Media Player.

--FVD Association, demonstrated its FVD (forward versatile disc) player platform, featuring high-definition video, using red-laser technology and WMV9.

--iCube, showed both a wireless digital media receiver and a portable media player featuring WMV9 video.

--I-O Data, showed its latest AVeL LinkPlayer featuring support for WMV9 format, as well as wireless networking.

--KiSS Technology, showed an IPTV set-top box for the TV2 Sputnik program, as well as its new DP-600 networked DVD player.

--LG Electronics, displayed a new 15" wireless liquid crystal display (LCD) TV that provides seamless access to stored media content.

--Momitsu, showed a networked DVD player that supports high-definition, WMV9 media content.

--Pioneer, exhibited a 50" plasma display with expansion Card technology that features WMV9 and Media Connect for network access.

--SHARP, showed its new MR01 network media player that allows media libraries stored on the PC to be viewed in the living room, on the TV.

--Tatung, showed a new FVD player designed for the upcoming FVD content for China and Taiwan.

--Toshiba, showed a new IP video set-top box platform based on their TX49 line of MIPS processors.

--Twinhead, showed a networked DVD player that adds WMV9 capability.

--ViewSonic, who was nominated for three CES show awards, showed a new wireless media gateway and adapter that offers WMV9 support.

Additionally, Sigma launched its groundbreaking new SMP8630 media processor, becoming the first company to demonstrate an integrated all-format solution with high-definition support for H.264, WMV9/VC-1 and MPEG-2. For more than five years, Sigma Designs has been investing in the development of advanced high-definition codecs to drive the expansion of the digital media, consumer market. The new SMP8630 series, with its multi-format high-definition decoding, marks the fourth year in a row that Sigma Designs has set a demonstrable milestone for the media processor industry at the Consumer Electronics Show:

--CES 2002 witnessed the first MPEG-4 decoder for consumer set-top products.

--CES 2003 witnessed the first high-definition decoder for both MPEG-2 and MPEG-4.

--CES 2004 witnessed the first high-definition WMV9 decoder for consumer products.

--CES 2005 witnessed the first high-definition decoder with H.264, WMV9/VC1 and MPEG-2.

Safe Harbor Statement

This press release may contain forward-looking statements, including statements about the projected timing and extent of customer shipments as well as the expected use of Sigma's MPEG decoder products. Actual results could vary from those projected in the forward looking statements as a result of various factors, including worldwide economic conditions, changes in the customer's ability or desire to complete the roll-out, consumer reaction to the new products and services being offered, the ability of Sigma to deliver sufficient quantity and quality of MPEG decoder chips, prices for the Sigma chips, alternative offerings by competitors, and the ability of the parties to work together successfully to achieve the rollout.

About Sigma Designs, Inc.

Sigma Designs (Nasdaq:SIGM) specializes in silicon-based media processors for IPTV set-top boxes, digital media receivers, high definition DVD players, HDTV, and portable media players. The company's award-winning REALmagic(R) Video Streaming Technology is used in a variety of consumer applications providing highly integrated solutions for high-quality decoding of H.264, WMV9, MPEG-4, MPEG-2 and MPEG-1. 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/.

REALmagic and Sigma Designs are registered trademarks of Sigma Designs. All other products and companies referred to herein are trademarks or registered trademarks of their respective companies.