Celerity Systems and Sigma Designs Team to Tackle Video on Demand and Broadband Opportunities.

Business Editors/Technology Writers

KNOXVILLE, Tenn.--(BUSINESS WIRE)--Nov. 12, 2001

Celerity Systems, Inc. (OTC BB: CLRT) and Sigma Designs, Inc. (Nasdaq: SIGM), today announced that they have entered into a supportive partnership under which the companies will cooperate to identify and capture business opportunities in the video on demand (VOD) and high-speed Internet markets. Celerity plans to use Sigma Designs' EM8401 decoder product in its T 6000(TM) digital set top box.

"The Sigma Designs decoder is a big part of our plans for the Rev 6 version of our product," said David Brumgard, Chief, Research and Development for Celerity. "The Sigma Designs EM 8401 gives us more flexibility, such as Dolby(TM) AC3 support, and a means of incorporating and adapting to emerging standards and technologies in software rather than replacing components or set top boxes in the future. One of the key design features of the T 6000 is that it gets much of its functionality from software, so that it not only remains current, it grows to incorporate new applications, including download over broadband networks."

"We are pleased to have a cooperative relationship with Sigma in the marketing and sales area," added James Hudson, Director of Sales and Marketing for Celerity. "While the number of companies actually doing interactive TV and broadband projects is relatively small and well-known, we believe that there are probably several entities, including schools, energy companies, hospitality, telcos, and multihousing properties, who have a high interest in such projects but do not know where to go for real information and real products. By partnering with companies like Sigma Designs, we all have a better chance to identify such opportunities and, where it fits, to turn them into successful operating systems."

"Working with Celerity on this venture further demonstrates the strength of IP Video Streaming and the continued momentum of companies seeking to provide the best solutions for their customers," said Ken Lowe, vice president of business development of Sigma Designs. "The T 6000 digital set top box is an impressive product now, and with our technology and support, we feel it will be even better. Sigma offers the industry a wide range of the most advanced solutions in the industry and solid success stories like Celerity, demonstrate that IP streaming video technology adoption is certainly the wave of the future."

About Celerity Systems, Inc.

Celerity Systems is a provider of advanced digital set top boxes and video servers for interactive television and high-speed Internet. Key markets include multihousing, schools, energy companies, hospitality, and telcos. Celerity can also provide end-to-end systems through strategic relationships with leading technology companies. Celerity also provides content for entertainment and education applications.

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, California, 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/.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.