Stream Machine and Sigma Designs Bring Personal Video Recorder Functionality to Advanced Set-Top Boxes.

Business Editors/High Tech Writers

MILPITAS, Calif.--(BUSINESS WIRE)--Sept. 19, 2001

Stream Machine and Sigma Designs (Nasdaq:SIGM) today announced a complete Personal Video Recorder (PVR) reference design named Harmony, which uses the SM2288 Audio/Video Codec chip from Stream Machine and the EM8475 DVD/MPEG4 Decoder chip from Sigma Designs. This new reference design is designed to enable manufacturers to inexpensively add PVR functionality to their advanced Set-Top Box products to address the rapidly-growing convergence marketplace.

Consumers Want Control & Convenience, Service Providers Want Revenue

Harmony enables the rapid development of cost-effective consumer products for the advanced Set-Top Box market that include high-quality digital video recording and time-shifting functions. These advanced convergence devices offer consumers full control over their viewing experience by providing pause, instant record and other time-shifting features during live broadcasts, as well as offering the ability to record one or more programs at specified times in the future.

The demand for consumer convenience and control over their entertainment experience is a major reason why time-shifting PVR functionality is projected to grow very rapidly in the next few years. According to Mike Paxton, senior analyst with Cahner's In-Stat Group, "The overall market for personal video recorders (PVRs) will exceed 10,000,000 units per year by 2004, with most of the time-shifting PVR functionality destined to be delivered inside an advanced set-top box."

In order for the market to grow as projected, PVR functionality has to be delivered cost-effectively for both consumers and service providers. The Harmony reference design achieves this goal by providing a high-quality viewing experience on low cost x86 platforms running LINUX. It is able to do this by leveraging the power of Stream Machine's SM2288 MPEG audio/video codec and the flexibility of Sigma Designs' EM8475 DVD/MPEG-4 decoder.

"Stream Machine and Sigma Designs are well-suited to pursue the advanced Set-Top Box market together," said Brian Heuckroth, VP of Marketing at Stream Machine. "We are convinced that there is world-wide demand for this technology, and our combination of chips offers the most cost-effective solution with the highest-quality video available."

"Sigma Designs has been in the interactive Set-Top Box market for some time, and we believe that the time has come for a robust PVR solution," said Ken Lowe, VP of Business Development for Sigma Designs. "Adding PVR functionality to the set-top box offers service providers the opportunity to roll out potential revenue-generating services such as personal video recording and video on demand, and our solution with Stream Machine is timed perfectly for the needs of this market."

Rapid Product Development Needs Comprehensive Software Support

Another requirement for PVR functionality to become widespread is reliable and customizable software. Dedicated support and integration for the Harmony reference design will be provided by Metro Link within their Metro-Media PVR architecture, which provides an easily customizable look, feel and user interface integrated with a full media infrastructure layer. Metro Link will be working with both Stream Machine and Sigma Designs to support mutual customers developing set-top boxes and PVR devices using the Harmony reference design.

Stream Machine's SM 2288 Audio/Video Codec

The SM2288 codec goes beyond the capabilities of earlier chips by offering both audio and video real-time encoding and decoding in a single, highly integrated device. It supports the MPEG-1 and MPEG-2 digital-video standards as well as Dolby(R) Digital and MPEG digital-audio standards. The SM2288 enables high-quality video recording in real time over a wide range of bit rates for different consumer applications. For example, it can compress a video stream for high-quality DVD recording at bit rates up to 15 Mbps, or conserve storage and bandwidth at bit rates down to 2 Mbps for personal video recorders and video streaming over home networks.

Sigma Designs' EM8475 DVD/MPEG-4 decoder

The EM8475 decoder is part of the EM8470 series, which are based on the company's award-winning REALmagic(R) Video Streaming Technology and provide highly integrated solutions for high-quality decoding of MPEG-1, MPEG-2 and MPEG-4. Positioned as a cost-effective solution for streaming video clients, advanced digital set-top boxes and next-generation interactive DVD players, the EM8470 series enable manufacturers to easily incorporate streaming video, DVD playback, and video-on-demand into their products.

Pricing and Availability

The Harmony Reference Design will be sold and supported by both Stream Machine and Sigma Designs. Price for the Harmony Reference Design is $5,000, and includes a board, software SDK, schematics, Gerber files, and a bill of materials. Availability is October 2001. Availability for the Metro Link PVR Toolkit will be announced shortly.

About Stream Machine

Stream Machine is at the heart of digital home entertainment, providing cost-effective semiconductor solutions that enable industry-leading video and audio compression. Stream Machine's proprietary compression technology offers the highest quality video at the lowest possible bit-rates and is compatible with all the important consumer standards, including MPEG-2, MP3, and Dolby Digital. Stream Machine's high level of integration provides the low system cost necessary to bring top-quality digital video and audio entertainment to consumers at a price they can't resist. Cirrus Logic recently announced a definitive agreement to purchase Stream Machine which is expected to be completed in the fourth quarter. For more information, please visit http://www.streammachine.com. Phone [phone] (USA) or 86-10-8453-4071/4075 (Beijing, China).

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, California, 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. Phone [phone].

About Metro Link

Metro Link, Inc. provides graphics for embedded Linux and real-time operating systems; and enables UPnP connectivity for set-top boxes, Internet appliances and consumer electronics. Metro Link's middleware products include a full suite of X Window System software used by business-critical and mission-critical clients. X.Org, the worldwide X Window System consortium, has contracted with Metro Link to maintain and enhance the X Window System source code. MetroEnableWorks is a trademark of Metro Link, Inc. Java is a trademark of Sun Microsystems, Inc. Contact: Robert Zinn, Vice President Marketing; Phone: [phone]; Fax: [phone]; Email: [e-mail] or visit www.MetroLink.com.