Sigma Enters Wireless Chipset Market Focused on Ultra-Wideband (UWB) Solutions.

New Wireless Products Division to Deliver a Cable-Free Total Solution for High Definition Audio/Video Streaming Between Consumer Products

MILPITAS, Calif. -- Sigma Designs (Nasdaq:SIGM), a leader in digital media processing for consumer electronics, today announced the formation of its Wireless Products Division with an initial focus on Ultra Wideband (UWB) technology and products targeted for high definition audio/video streaming between consumer products. This new technology will enable Sigma to strengthen its value-added offerings as consumer products trend toward ubiquitous connectivity while moving up to high definition.

Demand for wireless communication solutions continues to escalate each year, encompassing an increasing portion of the consumer electronics environment. While WiFi (802.11) solutions have largely satisfied the need for medium bandwidth data communications, the latest challenge is to address the needs of in-home audio/video entertainment connectivity with enough bandwidth to handle high-definition video streams while remaining affordable. Ultra-Wideband (UWB) technology offers an ideal solution, supporting a maximum data rate of 480 Mbps with high QoS, low power consumption and competitive pricing. Further, the WiMedia standard UWB MAC and PHY have been selected as the basis for upcoming wireless USB solutions with unlimited applications across both consumer and computer markets.

"Sigma Designs is the market and technology leader in media processors for IPTV, digital media adapters, and high definition DVD players," said Thinh Tran, chairman and CEO at Sigma Designs. "Our combined strengths in high definition video processing and groundbreaking extended range UWB technology enable us to make a compelling offer to leading edge consumer equipment makers that are developing cable-free solutions."

Sigma's new Wireless Products Division was largely formed around acquired elements of Blue7 Communications, a start-up company focused on the development of UWB semiconductor products for the consumer electronics market. The new Wireless Products Division is headed by Hung Nguyen, Vice President & General Manager, also the founder of Blue7 Communications. Nguyen is a seasoned executive and technologist with over 21 years of experience in wireless and mixed signal technologies and over 22 related patents in the areas of data communications and signal processing.

The Wireless Products Division is located at Sigma's headquarters in Milpitas and includes over 30 engineers dedicated to the development of all-CMOS baseband and RF components designed around the UWB standard. The company's all-CMOS product strategy, while more technically challenging, yields the lowest power and lowest cost solution possible while using a standard fabrication process. The company is currently providing engineering samples and intends to enter production at the end of this fiscal year.

Sigma's Wireless Products Division launch will coincide with the public showcasing of their first products at the CEATEC show starting tomorrow in Japan. Sigma's presence at the show will feature an industry first wireless A/V streaming total solution with the demonstration of an all-CMOS UWB chipset in conjunction with Sigma's popular EM8622L media processor chip, establishing a reference design platform. High definition video will be streamed over-the-air to a HDTV across the room, demonstrating its ability to maintain full quality of service while transmitting through an array of objects and people in the conference room without interruptions or artifacts on the displays.

"We are very excited to launch our new division and showcase our new high definition UWB streaming solutions publicly at the prestigious CEATEC show," said Hung Nguyen, Vice President and General Manager of the Wireless Products Division at Sigma Designs. "We believe that our solution, aimed at replacing HDMI and other A/V cabling, offers consumers the flexibility to place their consumer electronics equipment more freely without compromising streaming quality. As the industry's first demonstration of an all-CMOS UWB chipset with range extension technology, Sigma's Wireless Products Division has achieved a major milestone."

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 rollout, 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 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.

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.