EDS Specifies Sigma Designs NetStream 2 MPEG-2 Decoder for World's Largest Distance Learning Program; National Guard Educational Network Enters Phase 2.

MILPITAS, Calif.--(BUSINESS WIRE)--May 12, 1999--

Sigma Designs(R), Inc. (Nasdaq:SIGM) announced today that EDS (NYSE:EDS) has equipped all of the PCs in 70 classrooms with Sigma's NetStream(TM) 2 MPEG-2 decoders as part of the first phase of the development of the Army National Guard (ANG) educational network -- the world's largest distance learning program.

When completed next year, the network will connect more than 50,000 personal computers in nearly 1,000 classrooms throughout the United States, the Virgin Islands, Puerto Rico, and Guam.

The Army National Guard distance learning network was developed to provide training on the latest procedures while minimizing the time and expense required to assemble the more than 387,000 citizen soldiers for traditional classroom training.

"With strategically located video-enabled training facilities, no one will have to drive more than an hour for true, interactive training," explained Gary Yenser, EDS vice president of distance learning and collaborative technology. "The quality of training is also improved because every student has access to the best instructors, and commanders will have the assurance that all personnel have received the same level of instruction."

The individual classrooms support asynchronous transfer mode (ATM) networks to the desktop for high-speed delivery of audio/video feeds. Using video networking equipment from FVC.COM (Nasdaq: FVCX) and video conferencing software from Zydacron, the video feeds are delivered to each NetStream 2-enabled PC.

Sigma's NetStream 2 provides the vital link for delivering high-quality streaming video and audio across the wide-area network to user PCs. To ensure that even live video is delivered with absolutely no skipping or jerkiness, NetStream 2 uses a precision variable clock (VCXO) to lock the NetStream decoder to the frame rate of the broadcast encoder.

With audio and video handled as a hardware function, NetStream 2 keeps the CPU free to perform other tasks, such as using a spreadsheet or word processor while video is playing in a window. Keeping the CPU freed up is critical for a wide variety of networked video applications because these applications frequently need to use the Pentium CPU for tasks such as network data transfer, desktop productivity software, interactive applications, and MPEG encoders, all technology elements used in distance learning.

To maximize the Army National Guard's return on investment, the nationwide educational network is being made available to meet the streaming video needs of state and local government as well as educational institutions and businesses.

"Even though we've only completed Phase 1 so far, colleges, universities and government agencies are already making heavy use of the broadband ATM network during non-Guard training times," said Yenser. "It's a cost-effective solution because they can lease the network and facilities for videoconferencing and training projects, or they can lease the network itself on an hourly basis. With the high-speed, wide-area ATM network and NetStream 2 at the desktops, end users can access video and data without compromising video quality or degrading the performance of the data network."

The fully meshed T3 backbone provides 45MB transmissions across switched virtual circuits (SVCs) to seven regional hubs. The regional hubs service the state and local hubs across multiple T1 lines. As usage of the National Guard's network increases, EDS will upgrade and scale the network accordingly. The network's connection migration path will go from T1 to T3, OC3 and, ultimately, OC12. The leased access program is expected to fund all of the network upgrades.

A plug-and-play solution, NetStream 2 supports Microsoft's DirectShow 2.0 API with DirectShow-compatible MPEG-2 drivers and features a PCI architecture for easy integration in Windows(R) 95/98 and Windows NT 4.0 environments. Available for immediate delivery, NetStream 2 has an MSRP of $395.

Company Profiles

EDS has been a leader in the global information services industry for more than 35 years. The company delivers systems and technology expertise, management consulting, business process management and electronic business leadership. EDS, which reported revenues of $16.9 billion in 1998, offers solutions to improve the performance of more than 9,000 business and government clients in about 50 countries. The company's stock is traded on the New York Stock Exchange (NYSE:EDS) and the London Stock Exchange. Visit EDS via the Internet at http://www.eds.com.

Sigma Designs is an acknowledged leader in the fast-growing multimedia market. Sigma entered the multimedia market in 1993 with products based on the MPEG (Moving Picture Experts Group) standard for compressing and decompressing digital audio and video signals. Sigma is a driving force in advancement of the MPEG technology used in most multimedia products on the market today. Sigma Designs' products, marketed under the REALmagic trade name, include affordable MPEG/DVD video and audio decoding hardware used in consumer and commercial PC-based applications. Sigma products are sold worldwide through a direct sales force, distributors, and original equipment manufacturers (OEMs). For more information, visit the Company's web site at http://www.sigmadesigns.com.

Editors and Analysts: For further information and interviews, please contact Andy Marken, [e-mail] or 408/986-0100.

NetStream and REALmagic are trademarks, and Sigma Designs is a registered trademark of Sigma Designs. Other products and companies referred to herein are trademarks or registered trademarks of their respective companies.