Fully Integrated Single Chip 3D/2D Multimedia Accelerator Announced by Sigma Designs; 3D Offering is Latest Move Along Sigma's Strategic Roadmap In the Booming Multimedia Marketplace.

FREMONT, Calif.--(BUSINESS WIRE)--Dec. 7, 1996--Sigma Designs, Inc. (NASDAQ:SIGM), today announced REALmagic3D, the latest in its "planned progression" of integrated 3D/2D/Video accelerators for multimedia applications from interactive gaming, animation and virtual environments to business uses like enhancing internet user interfaces.

The REALmagic3D multimedia accelerator (SD6430) is the first single chip 3D and 2D 64-bit graphics accelerator designed from scratch to meet the Microsoft Direct3D and DirectDraw APIs. The chip integrates high performance 3D graphics, 2D acceleration, and full screen real-time video playback with a 200 MHz true color RAMDAC.

"This product is an example of the technical validity of refined product roadmap planning," said Kevin Dallas, group product manager, Direct X, Microsoft Corporation. "Incorporation of 'Direct' APIs contributes to standards, which in turn demonstrates maturity in what has been a confusing battleground for OEMs and end users."

Industry analyst Dr. Jon Peddie, president of Jon Peddie Associates, Tiburon, Calif., said, "Sigma has been steadily building their technology base for this introduction. Our research indicates their entry is at an appropriate time as the market enters a period of startling growth."

"The optimized architecture of this new design delivers exceptionally fast 3D graphics throughput for interactive applications along with uncompromised 2D performance for business uses," said Prem Talreja, Sigma's vice president of marketing. "The sweet spot in this market space is where blazing fast 3D and great 2D graphics performance meet. It's the best of both worlds for the desktop PC." (Other analyst quotes available on separate sheet or via email.)

"The REALmagic3D is also pinout compatible with S3's ViRGE and Sigma's REALmagic64/GX Video Graphics Accelerator, allowing manufacturers to easily modernize existing designs," said Talreja. "Its compact and efficient design results in industry-leading speed and flexibility, including 3D rendering throughput in excess of one million triangles per second using cost-effective EDO DRAMs."

REALmagic3D supports a full set of 3D graphics features such as:

-- Gouraud shading and flat shading;

-- MIP mapping and bi-linear filtering;

-- Z-Buffering (16- or 24-bit) to speed the removal

of hidden surfaces;

-- Full perspective correction providing higher-

quality texture mapping;

-- Alpha blending and translucent effects for

realistic rendering of glass, water or plastic; and

-- Fog and depth cueing for atmospheric effects used

to render realistic environments.

The chip also provides extraordinarily fast 2D graphics hardware acceleration for bitBLT, pattern, area fill, and line drawings. Its integrated video processor supports multi-media video acceleration, including accelerated motion video playback, using horizontal and vertical scaling with linear X-Y interpolation, color space conversion, and smooth scaling, in hardware, to enable playback of 3D interactive multimedia applications with MPEG video content.

With its integrated 24-bit RAMDAC dual clock synthesizer and hardware cursor, the product is also fully VGA compatible with a complete suite of software drivers and VGA BIOS support.

The REALmagic3D 64-bit graphics accelerator uses Sigma Designs' existing MPEG product technology combined with Microsoft's ActiveMovie, to provide high quality MPEG video playback. Sigma's CD Station software allows Windows MPEG software titles and Video CD movies to run at 30 frames per second with full screen SIF resolution for MPEG, Indeo and Cinepak formats on Pentium 120 or better.

"This multi-media accelerator solution provides our customers extremely high quality, smooth, flicker-free, live graphics and video for leading-edge 2D and 3D applications, while being easy to adapt for immediate performance upgrading," said Talreja.

Pricing and Availability: Samples of the REALmagic3D are available now in 208-pin FQFP packages with production shipments planned for the first quarter of 1997, according to Talreja. Pricing starts at $25 each in OEM quantities (10,000 pieces).

About Sigma Designs: Sigma Designs, Inc. (NASDAQ:SIGM) is an acknowledged leader in the fast-growing multimedia chipset market. Sigma entered the multimedia field 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 the advancement of MPEG technology used in most multimedia PCs on the market today.

Sigma Designs' products now include high-performance low-cost 2D/3D graphics as well as MPEG decoding hardware with the industry's most extensive line of MPEG software titles. Sigma sells to PC OEMs and card manufacturers worldwide through a direct sales force and a network of manufacturers' representatives. Sigma's products are marketed under the REALmagic trade name.

To contact Sigma Designs for additional information, call [phone], [phone], fax [phone], or web site: http://www.sigmadesigns.com

Except for the historical information contained herein, the matters discussed in this release are forward-looking statements that are subject to risks and uncertainties, including the timely introduction and market acceptance of Sigma's chipset and other related products, the impacts of competitive products and pricing, and the other risks detailed from time to time in the company's SEC reports, including the report on Form 10-K for the year ended January 31, 1996 and on Form 10-Q for the quarter ended October 31, 1996.

CONTACT: Brough Communications

Bruce Brough/Jason Taylor, 408/430-0100

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