Sigma Designs Supplies REALmagic Hollywood Card for Sony DVD Upgrade Kit

Sony Bundles DVD/MPEG-2 Playback Card With First DVD-ROM Drive for Entry Into Explosive DVD Market

FREMONT, Calif., (September 12, 1997) -- Sigma Designs Inc. (Nasdaq:SIGM) today announced that Sony Electronics has selected the award-winning REALmagic Hollywood DVD MPEG-2 playback card for inclusion in its first DVD-ROM drive package.

Scheduled to ship this month, Sonys DDU100E series combines the Sigma playback card with driver software, audio cable, and three multimedia titles.

The selection by Sony Electronics is the latest in a series of design wins for the card. Currently shipping in high volume, the card brings users state-of-the-art DVD digital video and digital surround-sound on the computer with simultaneous output to TV.

Available through Sigma's OEM customers, the REALmagic Hollywood DVD playback card turns a PC into a full-featured DVD player that fully exploits all of the spectacular digital video and digital surround sound capabilities of the DVD format and upcoming MPEG-2 interactive titles. The REALmagic Hollywood DVD/MPEG-2 playback card displays flicker-free video at full-screen resolution, making video watching on a PC truly a new and rich experience.

``Sony has been a significant contributor to the evolution and extraordinary success of the DVD standard,'' stated Dirk Peters, marketing manager of Sony Electronics Computer Components and Peripherals Group. ``We expect that our new DVD-ROM upgrade kit will continue in that tradition. We selected the Sigma REALmagic Hollywood card because it offered superior performance and quality.''

``We are delighted that a supplier with the reputation for innovation, quality, and performance of Sony has selected the REALmagic Hollywood card,'' added Prem Talreja, Sigma Designs' vice president of marketing.

The editors of The Computer Paper recently awarded the Sigma PCI-bus REALmagic Hollywood DVD MPEG-2 playback card the Editors' Choice Award as the best digital video player at COMDEX Canada '97. The editors described the card as ``truly superior,'' and ``coming through (literally) with flying colors.''

The REALmagic DVD card includes device drivers and Sigma Designs' DVD Station, an easy to use program for DVD navigation and control. With DVD Station, PC users can take full advantage of every interactive DVD feature, using simple VCR-like controls to choose soundtrack and subtitle language, select viewing aspect ratios, and change viewing angles. The user interface is intuitive and easy to navigate. Consumers can also interact with DVD Station menus to exercise parental control and execute search commands.

About Sony Electronics

Based in San Jose, Calif., the Value Added Products Division of Sony Electronics' Computer Components and Peripherals Group markets storage solutions through industrial distribution and reseller channels. For additional information about Sony computer storage products, call 800/352-7669 or visit Sonys World Wide Web site at http://www.sony.com/storagebysony.

Sony co-developed many components of the DVD and DVD-ROM drive technologies, including the modulation system. Sony is also the co-founder of compact disc technology, which has led to the development of CD-ROM, CD-Recordable and CD-Rewritable drives.

About Sigma Designs

Sigma Designs entered the multimedia market in 1993 with products based on the MPEG (Moving Picture Experts Group) standard for compressing and decompressing digital audio and video signals. Since then, Sigma has been a driving force behind the advancement of the MPEG technology used in most of the multimedia products on the market today. Sigma Designs' products include affordable MPEG video and audio encoding and decoding hardware. All Sigma Designs' products are sold worldwide through a direct sales force, network of distributors, and original equipment manufacturers (OEMs).

For additional information, call 800/845-8086 or 510/770-0100, fax: 510/770-2640.

Note to Editors: Except for the historical information contained herein, the matters discussed in this release are forward-looking statements that are subject to risks and uncertainties, including the timely introduction and market acceptance of Sigma's video- conferencing and other related products, the impacts of competitive products and pricing, and other risk factors detailed from time to time in the company's SEC reports, including the report on Form 10-K for the year ended Jan. 31, 1997 and on Form 10-Q for the quarter ended April 30, 1997.