Sigma Announces First MPEG-4 Decoder Card for PC Use; New REALmagic Xcard Supports High Fidelity TV Playback of DivX Video, ISMA and DVD Content.

Business Editors/High-Tech Writers

MILPITAS, Calif.--(BUSINESS WIRE)--Feb. 5, 2002

Sigma Designs (Nasdaq:SIGM), a leader in IP video streaming solutions, announced the first MPEG-4 client player add-in card for the PC. Marketed under the name REALmagic Xcard(TM), Sigma's newest MPEG-4 offering turns a PC into a home theatre solution, providing TV playback of top entertainment content from DivX Networks, DVDs and new Internet Streaming Media Alliance (ISMA) compliant video streams. Sigma's REALmagic Xcard will retail for $99.95 and will be available initially from the company's REALmagic Online store at www.buyrealmagic.com starting March 2002.

The REALmagic Xcard is a PCI plug-in card for the PC that supports full hardware decoding of MPEG-4 and MPEG-1 or 2 files, as well as high quality audio/video output to your TV and surround sound receiver. The REALmagic Xcard turns the PC into a client player for content from DivX Networks, DVD or VideoCD discs, and ISMA compliant video streams. Providing home theatre quality output, the REALmagic Xcard enables users to enjoy their content in standard, wide-screen, high-definition, or progressive formats with high-quality component video and Dolby Digital surround sound. Included with the REALmagic Xcard is a TV-like remote control that mimics the convenience of a DVD player. With plug-n-play set-up under Windows 98SE, Me, or XP, the REALmagic Xcard is expected to be in demand for users that are creating their own PC-based entertainment libraries.

"It's gratifying to be a pioneer in the emerging MPEG-4 industry and enable PC users to enjoy high-quality playback of their content collection on TV," said Ken Lowe, vice president of business development, Sigma Designs. "Moving from a small PC monitor with low-end speakers to a full-screen quality TV with surround sound is a dramatic shift in sensation."

Sigma is quickly becoming the dominant provider of IP video streaming solutions, based on its new EM8470 series of MPEG-4 decoder chips, the technology behind the REALmagic Xcard. The new EM8470 series, based on the company's award-winning REALmagic(R) Video Streaming Technology, is the industry's first, and so far only MPEG-4 chip to support full-resolution (720x576) and streaming video based on ISMA specification 1.0. The EM8470 series provides highly integrated solutions for decoding of MPEG-4, as well as DVD, MPEG-2 and MPEG-1 formats.

MPEG-4 is the next-generation digital video standard, enabling content developers to create sophisticated content containing audio, video, text, graphics and interactivity. The object-oriented environment of MPEG-4 provides for complex scene manipulation at low bit rates, making it ideal for streaming content over today's 300-1500bps broadband connections and more than doubling the capacity of existing MPEG-2 services.

"The proliferation of consumer MPEG-4 content across the internet is a milestone in the expansion of demand for streaming video," stated Phil Graham, vice president of ISMA. "We're excited to see Sigma Designs take a leadership role in support of the ISMA specification with their new products."

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/.

Note to Editors: REALmagic(R) is a registered trademark of Sigma Designs, Inc. REALmagic Xcard(TM) is a trademark of Sigma Designs, Inc. DivX(TM) Video and DivXNetworks are trademarks of DivXNetworks Inc. Other product and service names mentioned herein are the trademarks of their respective owners.