SigmaTel to Showcase STMP3600 Technology Leadership at CES 2006; SigmaTel to Demonstrate Reference Designs and New Products Developed Using the STMP3600.

AUSTIN, Texas -- SigmaTel, Inc. (NASDAQ:SGTL), a leader in mixed-signal multimedia semiconductors, today announced that it will be showcasing new portable multimedia player designs and technology leadership with its fourth generation of System on Chip (SoC) solution, the STMP3600, at CES 2006 in Las Vegas, January 5-8, 2006. The SigmaTel STMP3600 provides customers the ability to design and develop digital multimedia players with longer battery life, smaller form factors, and a higher level of processing power, all at a lower overall system cost. Demonstrations of the STMP3600 are available on an invitation only basis that can be arranged via a customer sales contact and will be shown in the SigmaTel meeting space at the Las Vegas Convention Center.

"The STMP3600 delivers the highest level of performance with the greatest degree of integration on the market and has experienced acceptance from some of the largest MP3 manufacturers in the industry. We are seeing significant design wins based on the STMP3600 today which will result in portable media player products with the longest battery life, smallest form factors, and advanced features, being introduced to the market in the first half of 2006," said Michael Wodopian, senior vice president, Portable System on Chip Group at SigmaTel. "The widespread industry acceptance of the STMP3600 underscores SigmaTel's continued technology innovation and market leadership."

SigmaTel's STMP3600 product demonstrations at CES will include:

--MPEG4 and H.264 video playback at 30 frames per second (fps)

--MP3 player with DRM10 protected content playback from a Secure Digital (SD) expansion card from Perception Digital

--STMP3600 flash-based players from AMAX 

--STMP3600 flash-based and hard drive-based MP3 players from LiteOn

--STMP3600 with capability to support XM Connect-and-Play(TM)

--STMP3600 running WinCE

--STMP3600 running Linux Kernel 2.6.13.3

--STMP3600 software development kit (SDK) 4.2 with Microsoft(R) PlaysForSure 1.2 support

--STMP3600 and STFM1000 FM Tuner EVK's

The high-performance ARM core of the STMP3600 provides the ability to support multiple video decoders including MPEG4 and H.264 and future support of WMV and VC1 video codecs at varying resolutions and bit rates. With a 200 MHz operating frequency, the STMP3600 can deliver robust video playback performance in software without the need for expensive hardware assist logic. In addition, the STMP3600 has integrated USB2.0 host and device, USB on-the-go, VFIR, and a Digital Radio Interface supporting SigmaTel's STFM1000 FM tuner solution.

High capacity flash-based players based on the STMP3600 can be enabled with as little as 2MB of external SDRAM, compared to comparable systems requiring 16-32MB. Compared to current high capacity flash-based players on the market, the SigmaTel STMP3600 provides more than 70 hours of battery life on a single AA battery and incredibly small form factor design capabilities through the integration of battery recharge, power management, audio codec, and flash controller on a single chip solution. With support for all major audio codecs including MP3, Windows Media Audio, AAC, and OGG Vorbis, the STMP3600 offers industry-leading audio quality (based on tests using Rhode and Schwarz Audio Analyzer technology). The STMP3600 also supports Microsoft PlaysForSure version 1.2 based upon Microsoft Digital Rights Management (DRM) 10. Additionally, SigmaTel's STMP3600 supports the widest range of NAND Flash solutions on the market, including MLC Flash.

To ensure widespread adoption and an easy transition to the STMP3600, SigmaTel has recently provided STMP3600 SDK training to more than 40 device manufacturers worldwide.

For more information on SigmaTel, please visit www.sigmatel.com.

About SigmaTel:

SigmaTel, Inc. a fabless semiconductor company headquartered in Austin, Texas, designs, develops, and markets proprietary, analog intensive, mixed-signal ICs for a variety of digital multimedia products in the consumer electronics and computing markets, including portable compressed audio players, such as MP3 players, notebook and desktop PCs, digital video cameras, multi-function peripheral products, digital televisions, and set-top boxes. SigmaTel provides complete, system-level solutions that include highly-integrated ICs, customizable firmware and software, software development tools, reference designs, and applications support. The Company's focus is on providing system-level solutions that enable customers to rapidly introduce and offer electronic products that are small, light-weight, power-efficient, reliable, and cost-effective. SigmaTel is ISO 9001:2000 certified and is committed to providing customers with high performance, quality products along with superior customer service.

Cautionary Language:

This press release contains forward-looking statements based on current SigmaTel expectations. The words "expect," "will," "should," "would," "anticipate," "project," "outlook," "believe," "intend," and similar phrases as they relate to SigmaTel or future events are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of SigmaTel, but are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. A number of important factors could cause actual results to differ materially from those in the forward-looking statements, and there will be events in the future that SigmaTel is not able to accurately predict or control. For a discussion of factors that could impact SigmaTel's financial results and cause actual results to differ materially from those in the forward-looking statements, please refer to recent SigmaTel filings with the SEC, particularly the Form 10-K that was filed on February 8, 2005 and the Form 10-Q that was filed on November 10, 2005.

SigmaTel is a registered trademark of SigmaTel, Inc. All other products and brand names as they appear in this release are trademarks or registered trademarks of their respective holders. All specifications may be changed without notice.