Sigma Media Processors Power Montego Portable Media Player from 2001 Tech; Montego PMP Offers Full DVD Resolution Video Playback.

MILPITAS, Calif. -- Sigma Designs (Nasdaq:SIGM), a leader in digital media processing for consumer appliances, today announced that 2001 Technology Inc. has launched a full-featured portable media player called Montego, which is based on Sigma's EM8561 media processor. The new Montego portable media player upscales the current genre of portable music players by adding full DVD resolution video playback to enable consumers to enjoy movies and photos anywhere.

Portable media players with full video playback as well as music, are now entering the market with the broadest range of entertainment options for consumers on the go. These new devices are expanding on the market demand started with portable music players by appealing to consumers who want to take movies and photos on the road with them, along with their music collection. Sporting a sharp color LCD display, users can play movies, videos, or photos in various formats, including MPEG-2, MPEG-4, JPEG, and soon WMV9. Furthermore, using standard video/audio outputs, users can enjoy their movies, share their photos, or amplify their music on any available television or stereo. Sigma media processors support this entire range of features and more, decoding nearly all the major digital media formats and providing the power for full control of a portable device.

Currently, the most popular portable music players can hold up to 10,000 songs, and newer models with photo viewing hold up to 25,000 photos, both far exceeding the average person's portfolio. Using similar storage capacity, consumers can now hold up to 20 full-length movies for instant entertainment. With storage capacity expanding from the early models with 4GB to the latest models with 80GB and more, an individual's complete media library along with selected videos can be taken everywhere. For instance, imagine having 1,000 selected songs, 2,000 significant photos, and a dozen new movies you're waiting to see always at your fingertips. Offered in a similar size and price range to the latest portable music players with photo capability, portable media players are expected to gain enormous demand in 2005.

"Portable media players are destined to displace their music-only predecessors," said Ken Lowe, vice president of strategic marketing, Sigma Designs. "Sigma has designed the most flexible media processors available, with support for all the formats, security, and processing power needed for a world-class media player."

The Montego Portable Media Player

The Montego Portable Multimedia Player, model MP-0120, is a powerful media playback device in a portable form factor that enables users to conveniently store and access a myriad of digital media content either from the internet, PC, or other sources. Boasting a 3.5 inch digital TFT-LCD screen, a 20GB hard disk drive and a rechargeable lithium ion battery pack that gives users uninterrupted 3.5 hours of continuous playback time, the Montego is one of the most powerful portable media players to enter the market. Cutting edge features that set the MP-0120 apart from similar products include:

--Full D1 resolution for DVD picture quality and no file recompression.

--Media-on-demand capability for audio/video streaming from your PC.

--Wide format support including MPEG-1/2/4, XviD, MP3, WMA, AC3, and JPEG

--Content management software for organizing your PC media collection

--Full TV output signals with composite, component, s-video, and stereo audio.

The Montego and its features can be viewed at: http://www.givitomi.com/Montego/index.html.

"We have designed a full featured portable media player that provides ultimate convenience for entertainment enthusiasts," said Ben Liang, president of 2001 Technology. Sigma's media processor complements this with the processing power, video quality, and format support needed."

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 2001 Technology Inc.

In 1989, 2001 Technology Inc. (www.2001tech.com) started its business with the manufacturing and export of accessories and peripherals for mobile phones and wireless communication products. Today, its business domain has expanded to include portable multimedia players, wireless SIP-based VoIP telephone and other digital consumer electronics products. At the turn of the century, the company saw the advancing trend of PC-based digital consumer electronics products. In the years that followed 2001 technology Inc. began to roll out a whole new range of consumer electronics products. Among them the NetVoice SIP-based wireless VoIP telephone with wireless gateway and the Montego portable multimedia player hold the key to fulfilling the company's credo of "Touching Today's World With Tomorrow's Technology."

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/.

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.