Sigma Designs' REALmagic NetStream 2 MPEG-2 Decoder Specified for Distance Learning Throughout State of New York; Innovative Video Solutions Meet Today's Changing Needs

Business Wire, August 18, 1999

MILPITAS, Calif.--(BUSINESS WIRE)--Aug. 18, 1999--

Sigma Designs(R), Inc. (Nasdaq: SIGM), a recognized leader in digital video solutions for education applications, announced today that its award-winning REALmagic(R) NetStream(TM) 2 MPEG-2 decoder is specified in distance learning projects approved by the New York State Education Department.

NetStream 2 has been qualified for projects throughout the state's twelve education districts, including Manhattan, Long Island, Nassau County, and Albany.

One of the most accelerated deployments is occurring in the Schenectady City Schools. Spearheading the project are Sal Deangelo, Director of MIS for the Schenectady district, and Brian Hogan of New England Systems & Software (NESS), a leading provider of information technology planning that recommends educational solutions for the State of New York.

The distance learning project in Schenectady is based on IBM(R) (NYSE:IBM) PCs equipped with the REALmagic NetStream 2 card for decoding video in the classroom. The distance learning project supports one-way broadcasting as well as bringing real-time interactive and video on demand learning to the district's 9,500 students and teachers.

Frost & Sullivan estimates that the distance learning market can reach $5.2 billion by 2004.

"Our mission is to raise the knowledge, skills, and opportunity of all students in our district," said Deangelo. "Today's student population is growing up around television and computer games. Multimedia (the combination of action, sounds, and pictures) is the optimal way to maintain their interest and full concentration. Students who don't pay attention don't learn. Now that fast PCs and high bandwidth networks are ubiquitous, the multimedia aspect of distance learning has really come of age. We give our educators high-quality multicasting of live video streams as well as video on demand playback. A primary advantage of distance learning is that it enables all students to have access to the best lectures and teachers. This is especially valuable to small schools in more rural areas, where lack of teachers makes it virtually impossible to offer specialized courses to students."

"The pilot phase of our project took a long time," Deangelo continued. "We experimented with various decoding options. But the bottom line is that our students and teachers want TV-quality video. That's why we standardized on REALmagic NetStream 2 -- we found that soft MPEG didn't do the job for us."

"Federal subsidies are supporting an explosion of demand for wiring schools deploying distance learning networks throughout our state," stated Hogan. "The instructional effectiveness of this new technology is reflected in high levels of student motivation. Our goal is to provide structured activities that utilize technology well, encouraging students to take responsibility for their own learning. The benefits are:

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--   Reduced learning time -- Because video makes such an impact,
     instruction requires significantly less time than that required
     for traditional classroom methods
--   Enhanced motivation -- Technology-based instruction is more
     interesting and enjoyable than classroom lectures
--   Increased achievement -- Technology-based interactive learning
     with corrective feedback produces better test results and
     knowledge retention"

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"Distance learning improves the quality of education and reduces costs -- that's why federal and state governments are willing to fund the technology," stated William K. Wong, Sigma's vice president of marketing. "High-quality video results in maximum productivity and creativity. School districts are leading the way in building broadband networks. NetStream 2, with its hardware MPEG decoding, exploits the full potential of distance learning," Wong concluded.

About Sigma Designs

Sigma Designs is an acknowledged leader in the fast-growing digital video market. The company focuses on meeting the growing demand for Internet-based digital video delivery and hardware video encoding/playback solutions for business, home, and education markets. Sigma specializes in digital video decoding for the PC DVD market, for video streaming over corporate/organizational Intranets and extranets, and for the emerging set-top box/information appliance market.

Sigma is a driving force in advancement of the digital video technology used in high-speed, high-bandwidth transmission. Sigma Designs' products, marketed under the REALmagic trade name, are sold worldwide through a direct sales force, distributors, and original equipment manufacturers (OEMs). For more information, visit the company's web site at http://www.sigmadesigns.com.

Editors and Analysts: For additional information, photographs, and interviews, please contact Andy Marken, marken@cerf.net at 408/986-0100.

Note to Editors: NetStream 2 is a trademark, and Sigma Designs and REALmagic are registered trademarks of Sigma Designs. Other products and companies referred to herein are trademarks or registered trademarks of their respective companies.