Sigma Designs Ships DVD/MPEG-2 Evaluation Boards To Key OEM Customers, Extends Multimedia 'Roadmap' Into Hottest New Digital Video Market

Analyst Projections Indicate DVD and MPEG-2 Next Major Multimedia Applications

FREMONT, Calif., April 8, 1997 -- As the DVD market heats up, Sigma Designs, Inc., (Nasdaq:SIGM), acknowledged MPEG digital video leader with its REALmagic' product line is shipping evaluation samples of a next-generation combination DVD/MPEG-2 board to major computer OEMs worldwide. It will be demonstrated at WinHEC 97, April 8-10, at the Moscone Center, San Francisco, Calif.

"Sigma is entering the DVD playback market with a solution offering quality and features comparable with DVD players which build upon our experience in the MPEG market," said Prem Talreja, Sigma Designs' vice president of marketing. "Consumers can buy personal computers including this technology in the second quarter of 1997."

In-Stat, a major industry analyst group based in Scottsdale, Az., has published projections of MPEG-based chips increasing 10 fold in three years, from 1996 to 1999.

Sigma Designs, Inc. (Nasdaq:SIGM) is an acknowledged leader in the fast-growing multimedia chipset market. Sigma entered multimedia in 1993 with products basedon the MPEG (Moving Picture Experts Group) standard for compressing and decompressing digital audio and video. Sigma is an acknowledged leader in the MPEG technology used in most multimedia PCs today.

Sigma Designs' products now include high-performance MPEG decoding hardware and low-cost graphics chips. Sigma sells to system integrators, PC OEMs, and card manufacturers worldwide through a direct sales force and a network of manufacturers' representatives. Sigma's products are marketed under the REALmagic trade name.

Editors and Analysts: For further information, photographs and interviews, contact S&S Public Relations.

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To contact Sigma Designs for additional information, call 800/845-8086, 510/770-0100, fax 510/770-2691, or web site: http://www.sigmadesigns.com .

Except for the historical information contained here in, 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 DVD/MPEG-2 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 Form10-K for the year ended January 31, 1996 and on Form 10-Q for the quarter ended October 31, 1996.