First DVD Video Renderer for Microsoft's Windows CE .NET Announced by Sigma; Bill Gates' Keynote and Demos Highlight Sigma's Appearance At CES 2002.

Business Editors/High-Tech Writers

CES 2002

LAS VEGAS--(BUSINESS WIRE)--Jan. 8, 2002

Sigma Designs (Nasdaq:SIGM), a leader in IP video streaming solutions, in conjunction with iCEBOX LLC, today demonstrated the industry's first DVD Video Renderer for Microsoft's new Windows CE .NET operating system. The importance of this new technology will be highlighted by demonstrations of the iCEBOX system at Bill Gates' keynote speech as well as Microsoft's eHOME pavilion.

DVD Playback Under Windows CE .NET

Windows CE .NET is a next-generation operating system targeted at a broad range of mobile, small footprint devices including handhelds, smart phones, set-top boxes, handheld retail point-of-sale and displays. Code-named "Talisker" during its development, Windows CE .NET provides a new level of connectivity as well as several other improvements to its predecessor, Windows CE 3.0. One of these improvements is its DVD Video navigation middleware -- a completely new architecture for providing full-featured, highly reliable DVD playback. To create a complete DVD solution for embedded appliances requires an MPEG decoder chip and a corresponding Windows CE. NET DVD Video Renderer, the first of which has been developed by Sigma Designs. As a new, solid operating system with full connectivity and multimedia features, Windows CE .NET represents an ideal operating system for the new range of Internet-connected set-top appliances.

"With the continued adoption of DVD as a multimedia format, it's important for Windows CE .NET to have great DVD support," said Aubrey Edwards, director of the Embedded and Appliance Platforms Group at Microsoft Corp. "Sigma Designs clearly has the expertise to help ensure Windows CE .NET delivers a great DVD experience."

The Emergence of a New Home Product

The first product publicly demonstrating the new Windows CE .NET DVD Video, powered by Sigma Designs' MPEG decoder chip, is the iCEBOX Flipscreen(TM). The iCEBOX Flipscreen, from Icebox LLC, a subsidiary of Salton, Inc., is the first web-enabled entertainment center designed specifically for the kitchen. This new space-efficient device combines cable-ready television, DVD/Audio CD Player, broadband Internet access and household monitoring -- all delivered with push-button simplicity. The iCEBOX Flipscreen fits conveniently under a kitchen cabinet and features an adjustable LCD monitor that flips up and out of the way when not in use. The iCEBOX Flipscreen will be demonstrated at Bill Gates' keynote speech as well as Microsoft's eHOME pavilion, located at the Las Vegas Convention Center (LVCC) booth No. 1041 and also Icebox LLC's booth No. 17625.

"Providing high quality playback of DVD video on the iCEBOX Flipscreen display was a key focus during development," stated Craig Kulfan, director of Software Engineering at Icebox, LLC. "Sigma's EM8400 MPEG decoder chip and Windows CE .NET DVD Video Renderer support enabled us to easily integrate DVD playback with the visual results we were seeking."

Clarion's Joyride Car Entertainment System

A second new Windows CE 3.0- based product being showcased at CES is the new Joyride Car Entertainment System from Clarion. Joyride provides a hands-free, voice-activated control of in-car entertainment, computing, GPS satellite navigation and vehicle diagnostics, as well as hands-free telephony for the driver. To provide rear-seat passengers with theater-quality video and audio, the company designed Sigma's EM8400 MPEG decoder into the Joyride DVD video playback and viewing subsystem.

"Sigma Designs' experience and leadership in the IP video broadband market is aptly demonstrated and leveraged by the broad base of adoption for Sigma's products," said Ken Lowe, vice president of business development, Sigma Designs. "Trends show that the home entertainment market is set to increase. As a direct result, Sigma's role will also continue to expand in this industry. These are changing times, and Sigma has the experience, resources and vision to continue to meet the technology demands of the future."

In addition to the demonstrations at CES, the latest MPEG-4 platform solutions, powered by Sigma's EM8470 series, are being demonstrated at a number of locations throughout CES 2002, including:

-- National Semiconductor's private demonstration room, located at LVCC booth
No. 17631

-- iVAST's private demonstration suite, located at the Venetian Hotel

-- EPOX's exhibit booth, located at LVCC booth No. 14620

-- Sigma Design's private demonstration suite, located at the Venetian Hotel

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/.

REALmagic(R) is a registered trademark of Sigma Designs Inc. Other product and service names mentioned herein are the trademarks of their respective owners.