Sigma Designs REALmagic Xcard Exclusively Distributed In Europe By KiSS Technology.

Business Editors/High-Tech Writers

MILPITAS, Calif.--(BUSINESS WIRE)--June 18, 2003

Sigma Designs (Nasdaq: SIGM), a leader in digital media processing for consumer appliances, today announced that KiSS Technology, a leading European vendor of DVD players, will be the exclusive distributor for Sigma Designs REALmagic (R) Xcard in Europe. European customers and dealers will now have a single distributor to obtain Xcards. Sigma's Xcard offers high-end features and turns a personal computer into a home theatre solution, providing TV playback of premiere entertainment content. The latest features supported by Xcard include a new graphical user interface (GUI), and compatibility with all current DivX formats.

Sigma Designs first announced availability for Xcard in February of 2002. Since then the demand for MPEG-4 technology generated by enthusiasts has created a need for solutions, like Xcard, that Sigma provides. The latest version of Xmedia player uses a new GUI to add functionality to Xcard, presenting a multi-purpose display panel with a more streamlined and accessible interface. Xcard also extends support for additional media types -- all current versions of DivX content are now supported in this release of Xmedia player. Due to the popularity of subtitle use within movie content, Xmedia player version 2.0 includes subtitle support, for such formats as MicroDVD, Subrip and Subviewer.

"KiSS Technology's history of providing advanced, high-quality products makes our exclusive distribution partnership with Sigma Designs an extension of our belief in their technology strength," said Bo Lustrup, marketing manager of KiSS Technology. "Europe is a market ripe with consumers who are constantly acquiring advanced entertainment solutions. Sigma Designs, as the leader in advanced CODEC technology, is equipped to provide our incredibly savvy customers with products, such as Xcard with the advanced features and high quality consumers look for."

In addition, as a preeminent vendor of advanced, multi-function DVD players, KiSS Technology has adapted Sigma's EM8500 and EM8600, a line of feature-rich, high quality, single chip DVD player solutions as the core technology for use in KiSS DVD players. Sigma's EM8500 and EM8600 allow manufacturers to satisfy the growing consumer demand for cutting-edge multimedia technology.

"Sigma's select distribution relationship with KiSS Technology creates a natural synergy with Sigma's technological innovation and KiSS' premier sales channels and distribution network," said Ken Lowe, vice president of strategic marketing at Sigma Designs. "Building upon the foundation of a long-term relationship with KiSS ensures that entertainment enthusiasts will continue to see advances in high-quality products and services from the partnership."

About the REALmagic Xcard

Sigma's 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 the TV and surround sound receiver. The REALmagic Xcard enables the PC to play 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.

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/.

About KiSS Technology

KiSS Technology A/S was founded in 1994 and has established itself as one of the leading manufacturers of DVD products and DVB-receivers throughout the world. KiSS Technology headquarters is in Hoersholm, Denmark. KiSS Technology A/S has four principal activities: DVD solutions, Plasma and TFT Displays, DVB solutions, and distribution of multimedia products. Please visit the company's web site at www.kiss-technology.com/.

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