Sigma Designs Powers Sony's New Network Media Receiver; The Network Media Industry Continues Expansion Based on Sigma's Media Processors.

MILPITAS, Calif. -- Sigma Designs (Nasdaq:SIGM), a leader in digital media processing for consumer appliances, today announced that Sony Corporation is going to launch its new network media receiver, the VGP-MR100, based on Sigma's EM8620L media processor. The Sony VGP-MR100 enables consumers to send files from a Sony VAIO to the TV or stereo, via home network.

"As portability of entertainment media continues to rise, consumers need a plug-and-play solution to enjoy all their content in the comfort of their living rooms," said Tasuku Yazaki, general manager Product Planning Department, VAIO Division, Sony Corporation. "Sony's new VGP-MR100 provides a solid solution to easily access entertainment libraries archived by each consumer. By working with Sigma Designs, we were able to deliver the most advanced technology with our new network media receiver."

With the PC becoming the media center for home entertainment, consumers have more flexibility in storing and collecting a myriad of content. As a result, digital media adapters allow consumers to remotely access all the digital music, photos and video stored on their PC through any TV in the home. Sigma media processors are designed to address this need, decoding major digital media formats and facilitating control of an embedded network device.

"As digital media adaptors have become more mainstream, companies such as Sony have chosen Sigma as a key player in enhancing their products," said Ken Lowe, VP of strategic marketing, Sigma Designs. "Moving forward the market will continue to see an influx of digital media adaptors, and will find Sigma powering them."

With a simple remote control the Sony VGP-MR100 allows consumers the opportunity to access video, music and photos stored on a VAIO, anywhere in the home, via a large-screen TV in the living room. Beyond its primary features, the VGP-MR100 will also be compatible with the DLNA (Digital Living Network Alliance) guidelines. The network media receiver is scalable to access multiple VAIOs and/or DLNA-compliant server products, and access the content from one location. Sony's new network media receiver provides convenience and accessibility to an entertainment library that is as vast and varied as each individual consumer.

The Sony VGP-MR100 features include MPEG-1 and MPEG-2 ("Giga Pocket" or "Do VAIO"), DV-AVI and HDV file (camcorder files), WMV support for video files, ATRAC3, ATRAC3plus, WAVE, MP3 and WMA support for audio files, JPEG, GIF, PNG, TIFF and BMP support for image files, IEEE 802.11b/g support and 100BASE-TX.

Availability

The Sony VGP-MR100 will be available in February for Japan and the US; and in the near future in Europe.

About the EM8620L Media Processor

The EM8620L media processor from Sigma Designs provides a complete single-chip solution for next generation IP video and connected media players, featuring high definition Windows Media Video 9 support. 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 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/.

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.