Sigma's Successful Momentum Continues To Build; CES 2004 Showcases Numerous New Products Based On Sigma Processors.

Business Editors/High-Tech Writers

2004 International CES

MILPITAS, Calif.--(BUSINESS WIRE)--Jan. 16, 2004

Sigma Designs (Nasdaq:SIGM), a leader in digital media processing for consumer appliances, today announced that the Consumer Electronics Show (CES) 2004, and the momentum generated, continues to be a success based on numerous companies that launched new products based on Sigma's media processors. The new class of products introduced include advanced DVD players, digital media adaptors and portable players with the theme of home networking and streamlined consumer entertainment.

New Advanced DVD Players

Perhaps the highest impact introductions were those based around Sigma's recent announcement of the EM8620L, the Company's next generation media processor that supports Microsoft's new Windows Media Video 9 (WMV9) and HighMAT (High Performance Media Access Technology). Sigma is uniquely positioned to provide the consumer market with comprehensive solutions for advanced DVD players that offer the latest codecs (WMV9, MPEG-4, DiVX), support for networking and local hard drives, advanced navigation (HighMAT), and high definition video output. Consumer product demonstrations based on the EM8620L included:

-- Apex Digital, Inc., a leader in consumer electronics and a

major supplier of consumer digital entertainment products,

including DVDs, TVs, digital still cameras and camcorders,

demonstrated a new DVD player that provides high-definition

and WMV9 capabilities by utilizing Sigma's EM8620L media

processor.

-- KiSS Technology, a globally leading Scandinavian manufacturer

of DVD products launched three new products at CES. These

included the DVD player DP-600, DVD recorder DP-678 and a

streaming device SB-020, all using the EM8620L media processor

from Sigma Designs.

-- V Inc., the multiple award-winning digital display brand

launched the Bravo D3 high definition DVD player with WMV9 and

HighMAT formatted playback also based on Sigma's EM8620L media

processor.

"The momentum from CES is a reflection of this year's market demand for networkable solutions, high definition, and more advanced codecs for consumer entertainment," said Ken Lowe, VP of strategic marketing. "Sigma has started 2004 off with an explosion of companies who have selected our media processors as the solution to high-end and reliable consumer products."

New Digital Media Adapters

Emerging on the scene as a hot new product category, Digital Media Adapters support local distribution of video/audio content to television sets throughout the home using wired or wireless connectivity. Exemplary of this category of devices, Pinnacle Systems announced in September, the debut of the Pinnacle ShowCenter, a digital media management and playback solution based on Sigma's EM8550 media processor. In addition to the ShowCenter, several devices were demonstrated at CES, including:

-- ADS Technologies, a world leader in Universal Serial Bus and

IEEE-1394/FireWire solutions, which launched Media-Link, a

digital entertainment receiver based on Sigma's EM8550 media

processor. The Media-Link receiver identifies PCs in the home

network and provides instant, remote control access to stored

entertainment files, allowing consumers to access any and all

stored content in the comfort of a living room.

-- Denon Electronics, a leader in the manufacture of high quality

audio, audio/video and software products introduced the

NS-S100 Multimedia Server, a fully integrated media server for

music, video and photos, and the NS-C200 Multimedia Client,

both powered by Sigma. The two product system provides a

flexible solution to meet virtually all conceivable networking

needs.

-- Lite-On Information Technology Corp., the largest optical

drive maker in Taiwan, launched a connected DVD player based

on Sigma's EM8500 family of media processors.

-- Manowa International Inc., demonstrated a connected DVD player

based on the Sigma Designs EM8500 family of media processors.

-- MSI Computer Corp, a leading motherboard and graphics card

manufacturer, introduced a digital media adaptor based on

Sigma's EM8610L.

-- icube demonstrated their Play@TV Home Media Center (at the

Intel booth) using Sigma Designs EM8550 chip.

Other New Products

Sigma's media processors were also used in a number of portable media players and other products being demonstrated at CES, including:

-- DataPlay, of Boulder, Colorado demonstrated their new portable

video player powered by Sigma's EM8510 media processor. The

new product is capable of recording and playing the highest

quality video including DiVX, MPEG-4 and WMV9 files utilizing

their coin size removable disks.

-- GoDot, founded in 2000, specializes in multimedia and

communication consumer products. The company introduced a

portable MPEG-4 player using Sigma's EM8551 media processor.

-- 2001 Tech, designs, manufactures and markets the most complete

range of peripherals and accessories for cellular phones and

other wireless communications tools. The company launched a

portable player with Ethernet connection based on Sigma's

EM8551 media processor.

-- GST provides design and manufacture of wireless communication

equipment, and at CES introduced a portable player with

Sigma's EM8501.

About the EM8620L Media Processor

The new EM8620L media processor from Sigma Designs provides a complete single-chip solution for IP video set-top boxes, DVD receivers and DVD players. The EM8620L offers a wide range of media processing functions for video decoding, audio decoding, and graphics processing based on REALmagic(R) HD technology, for the highest quality image possible on high definition displays. For single-chip systems, it features an on-chip RISC processor, PCI-bus, IDE controller and additional peripheral ports for supporting other subsystems.

About the EM8550 Media Processor

The EM8550 provides a highly-integrated solution for MPEG-4, MPEG-2 and DVD decoding. Based on the company's award-winning REALmagic(R) Video Technology, it enables cost-effective solutions for consumer appliances, such as portable media players, low-cost video endpoints and progressive DVD players/recorders with PVR and networking.

Safe Harbor Statement

This press release may contain forward-looking statements, including statements about the projected timing and extent of customer shipments as well as the expected use of Sigma's MPEG decoder products. Actual results could vary from those projected in the forward looking statements as a result of various factors, including worldwide economic conditions, changes in the customer's ability or desire to complete the roll-out, consumer reaction to the new products and services being offered, the ability of Sigma to deliver sufficient quantity and quality of MPEG decoder chips, prices for the Sigma chips, alternative offerings by competitors, and the ability of the parties to work together successfully to achieve the rollout.

About Sigma Designs, Inc.

Sigma Designs (Nasdaq:SIGM) 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 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.