Sigma Designs Demonstrates a Rich Entertainment Experience on PCs Running Microsoft Windows Vista With Windows Media Center.

MILPITAS, Calif. -- Sigma Designs Launched the Pika 8622L Development Kit at WinHEC Enabling Development of Next-Generation Consumer Devices Incorporating Windows Media Center Extender 

Sigma Designs (Nasdaq:SIGM), a leader in digital media processing for consumer electronics, announced the launch of its Pika 8622L development kit, showcasing the next-generation Microsoft Windows Media Center Extender. The Pika 8622L was developed by Sigma Designs to enable Microsoft industry partners to develop networked digital TVs and media center adapters. The Pika 8622L was featured in the keynote address, in the Microsoft Pavilion and at the Media Center Extender Platform Adaptation Kit track at the WinHEC 2006 conference in Seattle.

"Our media processors have become the de facto standard for use in the digital media adapter (DMA) market," said Ken Lowe, vice president of strategic marketing at Sigma Designs. "With the rise in demand for networked home appliances, the Pika 8622L, which uses the Microsoft Windows Media Center Extender Platform Adaptation Kit, offers consumer electronics vendors a complete development platform for a whole new generation of products."

"We believe we are at an inflection point in terms of how people will access, acquire and enjoy digital content throughout their homes -- whether from the Web, a content service provider or their own home productions," said Dave Alles, general manager, Windows Media Center devices at Microsoft Corporation. "We're pleased to work with Sigma to offer consumer electronics companies a cost-effective solution for providing consumers with Media Center Extenders that support Microsoft's PlaysForSure requirements for networked devices."

The Pika 8622L development kit also features two USB 2.0 host ports, a 10/100 BaseT Ethernet port, and optional Sigma Windeo WiMedia based UWB or third party 802.11 wireless support. The 8622L development kit along with the Microsoft Windows Media Center Platform Adaptation Kit software is planned for availability in Fall 2006.

About Sigma Designs, Inc.

Sigma Designs (Nasdaq:SIGM) specializes in silicon-based media processors for IPTV set-top boxes, digital media receivers, high definition DVD players, HDTV, and portable media players. The company's award-winning REALmagic(R) Video Streaming Technology is used in a variety of consumer applications providing highly integrated solutions for high-quality decoding of H.264, WMV9, MPEG-4, MPEG-2 and MPEG-1. 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/.

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.

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.