Sigma Designs Announces NetStream 2000 for Broadcast-Quality Video; Latest Playback Card for Streaming Video Addresses the World of Business Networks.

MILPITAS, Calif.--(BUSINESS WIRE)--Sept. 27, 1999--

Leveraging the technology that has made its REALmagic(R) NetStream(TM) digital video playback card so popular, Sigma Designs(R), Inc. (Nasdaq:SIGM) announced today its new NetStream 2000.

Based on Sigma's new MPEG-2 EM8400 decoder silicon, NetStream 2000 offers the highest digital video playback quality available at a reasonable cost for corporate networks.

"NetStream 2000 is a dramatic improvement over NetStream 2," stated Marshall Goldberg, Sigma's director of marketing. "In planning the NetStream 2000 product, based on our own highly integrated EM8400 decoder silicon, we interviewed engineers at Oracle (Nasdaq:ORCL), Cisco (Nasdaq:CSCO), Silicon Graphics (NYSE:SGI), and Microsoft (Nasdaq:MSFT) to determine new features they wanted.

"Accordingly, we have incorporated literally 100 software and hardware enhancements into NetStream 2000. These new features mean amazingly improved video quality, more flexibility, and greater compatibility."

Digital video is changing the way businesses communicate, learn, and market. Those ubiquitous computer monitors are being turned into video screens. With a screen on virtually every desk, laptop, ATM, and gas pump, networked video is here to stay.

The ability to send video across networks enables streaming -- playing video during download. Corporate networks provide the bandwidth to deliver high-fidelity compressed video. Dazzling streaming video provides a vehicle for continually delivering new information and skills to employees and customers.

"Sigma Designs was the first company to offer MPEG video decoding solutions to the industry and is still the streaming video market leader," explained William K. Wong, Sigma's vice president of marketing. "In addition to supporting full-screen, full-motion networked video, REALmagic NetStream 2000 now enables DVD movie playback and HDTV support. This new product, based on our own silicon, strengthens our leadership position in the streaming video market." -0-

     Sigma Designs has been extremely successful in four areas of
     streaming video applications:

     --   Entertainment -- Such as video-on-demand for cruise ships
          and hotels
     --   Distance learning -- Providing high-quality multicasting of
          live video streams as well as video-on-demand
     --   Training -- Providing employee training for retail chains as
          well as airline and automobile mechanics
     --   Retail advertising -- "Retailtainment" delivers brand equity
          advertising in retail stores.

A plug-and-play solution, NetStream 2000 features a PCI architecture for easy integration in Windows(R) 95, 98, and NT 4.0 environments. Due to the EM8400's high level of integration, NetStream 2000 has a 50% smaller footprint than NetStream 2.

The new streaming video playback card is also compatible with a broad range of third-party applications, including video servers for video-on-demand, MPEG encoders for stored or real-time playback, satellite delivery systems, streaming video playback systems, and hundreds of customizable interactive training titles. -0-

     Some of the outstanding new features of NetStream 2000 include:

     --   Superior scaling capability for DVD-Video in pan/scan and
          widescreen (letterbox) mode
     --   VGA scan converter
     --   Complete DVD playback and navigation
     --   Macrovision-certified NTSC/PAL encoder
     --   HDTV mode for full-screen 480 progressive and 720
          progressive output
     --   Interlaced composite, S-video, component YUV and RGB TV
          output

DirectShow MPEG-2 Support

NetStream 2000 supports Microsoft(R)'s DirectShow 6.0 API with DirectShow-compatible drivers and is fully compatible with the same MPEG-2 streaming video products supported by the earlier NetStream 2 product. These include the Silicon Graphics MediaBase Video Server, the Oracle Video Server, Microsoft's NetShow Theater video server, Cisco IP/TV, InfoValue's QuickVideo Suite video server and live video broadcast solution, FVC.com's V-Cache video server and VCaster broadcast solution, the Minerva VNP broadcast encoder, and NEC's HyperMS video server.

NetStream 2000 is delivered with the Microsoft Windows(R) Media Player 5.2, an easy-to-use utility that can be incorporated into Web-based tools that customers use to create streaming video applications.

To create a home theater environment in a cruise ship cabin or hotel room, NetStream 2000 decodes and plays Dolby Digital (AC-3) and Pro Logic 5.1 channel surround sound.

Evaluation samples will be available in October. NetStream 2000 will be in volume shipment during the fourth quarter of this year and will be available from major resellers and distributors, including Ingram Micro. NetStream 2000 has an MSRP of $399.

About Sigma Designs

Sigma Designs is an acknowledged leader in the fast-growing digital video market. Sigma specializes in digital video encoding/decoding for the PC DVD market, for video streaming over corporate Intranets and extranets, and for the emerging set-top box/information appliance market.

Sigma is a driving force in advancement of digital video technology used in high-speed, high-bandwidth transmission for business, home, and education markets. Sigma Designs' products, marketed under the REALmagic trade name, are sold worldwide through a direct sales force, distributors, and original equipment manufacturers (OEMs). For additional information, visit the Company's web site at http://www.sigmadesigns.com.

Editors and Analysts: For further information, photographs and interviews, please contact Andy Marken, [e-mail] or 408/986-0100.

Note to Editors: NetStream is a trademark, and REALmagic and Sigma Designs are registered trademarks of Sigma Designs. Other products and companies referred to herein are trademarks or registered trademarks of their respective companies.