KiSS Technology Introduces First DivX Certified DVD Players Based on Technology from Sigma Designs; New DVD Player Closes The Gap Between Internet Media and Consumer Electronics.

Business Editors/High-Tech Writers

CeBIT 2003

MILPITAS, Calif.--(BUSINESS WIRE)--March 11, 2003

Sigma Designs, Inc. (Nasdaq:SIGM), a leader in digital media processors for consumer appliances, along with KiSS Technology, a leading European vendor of DVD players, jointly announced the development of the first DivX certified DVD players. The new DivX Certified video capability, featured in KiSS Technology's complete line of DVD players, is being demonstrated this week at the CEBIT 2003 show in Hanover, Germany. The KiSS DVD players will be marketed across Europe and will reach retail stores at the end of March.

Sigma Designs developed a line of feature-rich, high quality, single chip DVD player solutions that allow manufacturers to satisfy growing consumer demand for cutting-edge multimedia technology. Sigma has also worked closely with DivXNetworks to enable playback support for all versions of DivX Video (5.xx, 4.xx and 3.xx) on its DivX Certified chipsets, the EM8500 and EM8600. KiSS Technology adapted this core technology for use in its DVD players to achieve the first DivX certified consumer products.

"The DP-500 sets a new standard for networked consumer products, by bringing digital content into everyday life. Multimedia functions such as the download and playback of DivX movies on-demand, listening to Internet radio, viewing digital images and sending instant messages was, until today, something that was done in front of the PC. Now consumers can easily access these functions anywhere in their home," said Bo Lustrup, marketing manager of KiSS Technology.

DivX video, which offers DVD-quality video at 7-10 times greater compression than MPEG-2, is the world's most popular MPEG-4 compatible video compression technology with over 75 million worldwide users. A wide range of DivX-certified consumer electronics devices, from portable video players to DVD players and set-top boxes, are scheduled to hit the market in 2003.

"We are very excited to work closely with KiSS Technologies and Sigma Designs in order to bring the first DivX Certified consumer electronics devices to the worldwide marketplace," said Shahi Ghanem, COO of DivXNetworks. "The revolutionary network-enabled capability of the KiSS DP-500 will enable anyone to download a secure DivX movie and watch it directly on their television at the highest level of quality."

KiSS Technology produces a line of high quality consumer electronics, including the advanced DP450 and DP500 DVD players. Manufactured and designed in Scandinavia, these players are designed to provide consumers with the highest-quality picture and sound. In addition to DivX compatibility, the DVD players offer a ground breaking progressive scan technology that enhances the visual experience, MPEG-4 support, unique MP3 playback, advanced user interface and a photo album feature for digital photo collections. The players come complete with the standard DVD, DivX, SVCD, VCD, CD, MP3, Ogg Vorbis, JPG, CD-RW and DVD-RW playback offered by its predecessor, the award winning DP-330. For more information, visit www.kiss-technology.com/.

"KiSS Technology continues to introduce ground-breaking products with innovative features designed for the entertainment enthusiast," said Ken Lowe, vice president of strategic marketing at Sigma Designs. "Adding the benefit of DivX Certification, the most popular MPEG-4 consumer format, to its line of DVD players, allows KiSS to satisfy a growing base of consumers."

In addition to the KiSS DVD player, a new version of the REALmagic Xcard Windows drivers from Sigma Designs is also being introduced, which offers DivX certified operation. Sigma's Xcard can now support playback of DivX Video 5.xx, 4.xx, and 3.xx, and also provides an additional custom skin GUI interface for a fresh new look and feel. The new Xcard upgrade is being demonstrated at this week's CEBIT 2003 show and is available immediately from Sigma Designs.

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/.

About KiSS Technology

KiSS Technology A/S was founded in 1994 and has established itself as one of the leading manufacturers of DVD products and DVB-receivers throughout the world. KiSS Technology headquarters is in Hoersholm, Denmark. KiSS Technology A/S has four principal activities: DVD solutions, Plasma and TFT Displays, DVB solutions, and distribution of multimedia products. Please visit the company's web site at www.kiss-technology.com/. Please visit KiSS Technology at Cebit - hall 20 at booth E33.

About DivXNetworks

DivXNetworks is a consumer-focused video technology company positioned at the center of multimedia convergence. The company's core offering is the DivX(TM) video codec, the world's most popular MPEG-4 compatible video compression technology with over 75 million users worldwide. Often called "the MP3 of video," the patent-pending DivX video technology offers DVD-quality at 10 times greater compression than MPEG-2 files, enabling full length films to easily fit on a CD or be delivered over broadband connections. DivX video technology powers a range of applications that span the convergence value chain, from a secure IP-based video-on-demand solution to next-generation consumer electronics products and video software applications. DivXNetworks is headquartered in San Diego, California, with a satellite office in Los Angeles. For more information, visit http://www.divxnetworks.com/.