DG2L Demonstrates Hybrid DVB-IP Set-Top Box Based on Sigma Media Processor Chips; Neuron 2000 Set-Top Box Adds a New Dimension of Entertainment for Broadcasters and Network Operators.

LAS VEGAS -- Sigma Designs (Nasdaq:SIGM), a leader in digital media processing for consumer electronics, today announced that DG2L's Neuron 2000 hybrid set-top box is based on Sigma's EM8622 media processor and will be demonstrated at the National Association of Broadcasters (NAB) 2006 show starting today. The Neuron 2000 is one of the first high-definition (1080i) hybrid set-top-boxes that support both Digital Video Broadcasting (DVB) and ATSC broadcast services, as well as Internet Protocol (IP) standards with H.264/AVC (aka MPEG-4) compression support. Designed for high performance and bandwidth efficiency, the Neuron 2000 enables broadcasters and network operators to leverage both traditional one-way broadcast, as well as two-way interactive IP delivery.

The Neuron 2000 is the second in a series of DG2L's line of Neuron set-top-boxes based on the H.264/AVC compression standard. The new hybrid box also supports advanced interactive television services, such as personal video recording, a required feature for next-generation set-top-boxes. The Neuron 2000 is shipping in sample quantities and is scheduled to be available in June 2006.

"The Neuron 2000 is already generating tremendous excitement among broadcasters and network operators," said Ankur Sheth, CEO of DG2L Technologies. "Sigma's EM8622 media processor powers this box and enables us to efficiently deliver high-definition TV, H.264/AVC compression and other advanced features."

Taking advantage of the EM8622's powerful video decoding, the Neuron 2000 supports H.264/AVC (Advanced Video Coding) which is a digital video codec standard that is known for achieving the highest level of data compression. AVC is also known as the latest version of MPEG-4 (MPEG-4 part 10), and contains new features that compress video more effectively than previous standards without compromising image quality. These new compression standards offer superior performance, and cost savings that result from an increased number of HD channels that can be carried within the same bandwidth for the same price.

"DG2L and its Neuron 2000 are on the leading edge of a trend toward set-top boxes featuring advanced compression technologies for greater efficiency," said Ken Lowe, vice president of strategic marketing, Sigma Designs. "Sigma has been the leading provider of fully integrated media processors that feature all major compression standards, including H.264/AVC, VC-1 and MPEG-2."

DG2L will showcase the Neuron 2000 at the National Association of Broadcasters Convention 2006 in Las Vegas, April 24-27, 2006 in the AVC Alliance Stand, South Hall 2, Booth SL1976. DG2L will also offer a hospitality suite for private demonstrations at the Hilton Hotel, North Tower Suite, #23121. To schedule a meeting for a private demonstration at NAB 2006, please contact Matt Mckee; [e-mail].

Safe Harbor Statement

This press release may contain forward-looking statements, including statements about the anticipated benefits of the proposed acquisition with Blue7, the consummation of the Blue7 acquisition and the timing of any financial charges resulting from the acquisition. Actual results could vary from those projected in the forward looking statements as a result of various factors, including the ability to effectively integrate an acquired business and technologies, worldwide economic conditions, consumer reaction to the new products and services being offered, alternative offerings by competitors, and the ability of the parties to work together successfully to achieve the anticipated benefits of the proposed acquisition.

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/.

About DG2L

Founded in 2001, DG2L Technologies Inc. is a premier provider of next-generation digital media products, including digital cinema systems, set-top boxes and broadcast encoders for video services network operators. The company is one of the first in the world to engineer technology solutions based on MPEG-4 compression for high definition as well as standard definition content creation, distribution and playback. DG2L is headquartered in New York with offices in Tokyo, Beijing, Taiwan, Singapore, Mumbai, Changsa, and ChongQing. For more information about DG2L, please visit www.DG2L.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.