Sigma Designs and CinemaNow Enable Movie Streaming to Connected DVD Players.

Business Editors/High-Tech Writers

CeBIT 2004

HANNOVER, Germany--(BUSINESS WIRE)--March 18, 2004

KiSS Technology To Demonstrate The First Connected Players

Using Windows Media Video 

Sigma Designs(R), Inc. (Nasdaq:SIGM), a leader in digital media processors for consumer appliances and CinemaNow, a leader in IP-based video-on-demand distribution and technology, announced that they are working together with KiSS Technology to create the first connected DVD player capable of streaming or downloading Windows Media Video (WMV) content directly from the CinemaNow Internet video-on-demand service. KiSS Technology will be featuring a technology demonstration of its WMV9-enabled DVD player at the CeBIT show starting today, in hall 20, stand C27.

Heralded as a revolution in home video, Internet-based services such as CinemaNow combine the convenience of in-home movie viewing with the breadth of a vast library of popular, niche and classic content. These services allow customers to download and view movies in near-DVD quality within seconds, or in some cases view them immediately by using video streaming. Aside from all these benefits, there has been one primary drawback - access to these movies has been mainly limited to the PC. Most analysts agree that getting video content off the PC and onto the TV is critical to the mainstream growth of these services.

The introduction of this type of connected DVD player is an important step in increasing mainstream consumer adoption of Internet video-on-demand services and represents a significant milestone for CinemaNow. With the Internet distribution rights to the most extensive and comprehensive collection of film and television content available online, the CinemaNow library contains more than 4,200 feature-length films, shorts, music concerts and television programs from more than 150 licensors including 20th Century Fox, Disney, MGM, Miramax, Warner Bros., Lions Gate Entertainment, Lot 47 Films, Vanguard Cinema and Visionbox Media. CinemaNow content is made available in Microsoft's Windows Media Video 9 Series format and is protected by Microsoft's Windows Media Digital Rights Management (DRM) software in conjunction with CinemaNow's PatchBay(TM) technology. Films are distributed via the company's Web site, www.cinemanow.com, which is currently being accessed by more than 1 million unique users per month. Films are available on a pay-per-view, download-to-own and subscription basis, making CinemaNow the most complete and flexible service for accessing movies online.

"Allowing consumers to download and watch Internet-delivered content on their televisions is the next great frontier in digital distribution," said Bruce Eisen, executive vice president of CinemaNow. "We want to make it as easy as possible for consumers to view CinemaNow-delivered movies in their living rooms, and these new connected DVD players should provide the critical link necessary."

Using silicon from Sigma Designs, television-based access is now possible. This new class of connected DVD players with WMV9, now being demonstrated by KiSS Technology, will offer the entertainment enthusiast three new options for accessing digital entertainment. Attached to the television and using a built-in network connection, these new players will enable users to sign onto the CinemaNow service and directly access streaming video content. Alternatively, users could stream video content via a wireless network from a PC or media center located elsewhere in the home, or could playback content stored on DVD or CD media in WMV 9 format.

"CinemaNow offers a great service with a growing list of content, attractive terms, and easy-to-navigate menus. Bringing this service from the PC-based access that exists today to the television, vis-a-vis connected DVD players, is a major step that should increase the potential viewers by an order of magnitude," said Ken Lowe, vice president of strategic marketing for Sigma Designs.

"Placing control and convenience into the palms of consumers is key to succeeding in the constantly changing world of consumer entertainment. Working with Sigma Designs and CinemaNow in developing our new connected DVD player to provide consumers with true on-demand capabilities, as well as creating a seamless connected home entertainment unit, accomplishes KiSS' goal of delivering value to consumers in a tangible setting. We are only seeing the tip of the iceberg, with even more exciting changes and new products to deliver. We expect a positive reaction to and increased adoption of CinemaNow's services with our products, not only in the US, but also in Europe and the Far East," said Peter Wilmar Christensen, CEO, KiSS Technology.

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.

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/.

About CinemaNow, Inc.

CinemaNow, Inc. (www.cinemanow.com) is the global leader in Internet-based video-on-demand (VOD) and subscription video-on-demand (SVOD) distribution and technology. Through its growing list of content partners including 20th Century Fox, Disney, Lions Gate, MGM, Miramax and Warner Bros., the CinemaNow Web site has become the premier destination for the authorized downloading and streaming of feature films on the Internet. CinemaNow has also developed PatchBay(TM), a proprietary content-on-demand distribution and management system that runs the CinemaNow Web site, and is available as a licensable technology solution. CinemaNow is majority owned by Lions Gate Entertainment (AMEX: LGF).

About KiSS Technology

KiSS Technology A/S was founded in 1994, and has established itself as one of the world's leading producers of DVD products with support for MPEG4 based formats and other PC like capabilities. KiSS Technology is based in Denmark (Greater Copenhagen) and has tree areas of business: DVD solutions, DVB solutions, plasma and TFT displays. You can read more about KiSS Technology at: www.kiss-technology.com

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.