Sigma Designs MPEG-2 Silicon Selected by CiaoLab; New HomeStation Product Offers Entertainment, Communication and Security Monitoring Functions in All-In-One Internet Device

Business Wire, June 12, 2001

Business Editors/High-Tech Writers

MILPITAS, Calif.--(BUSINESS WIRE)--June 12, 2001

Sigma Designs (Nasdaq:SIGM), a leader in MPEG decoding silicon solutions, announced today that its EM8400 MPEG-2 decoder solution has been incorporated into CiaoLab Technologies' HomeStation set-top appliance. CiaoLab, a major Italian firm leading the commercialization of IP connectivity solutions, intends to market Homestation on a worldwide basis starting in the second half of the year.

HomeStation is an easy-to-use and affordable residential gateway and home entertainment device that uses the television as the primary screen. As an entertainment center, the Homestation supports video-on-demand, MP3 jukebox, Pay TV, and internet radio. With appropriate plug-ins and software, the Homestation also provides e-mail, video mail, picture e-mail, voice e-mail, video telephony, web-surfing, and security monitoring.

"CiaoLab has chosen Sigma's MPEG decoder because it offers the best combination of video quality and software support available for video-on-demand," said Terry Hannington, marketing director of CiaoLab. "For the CiaoLab HomeStation, a high function, high powered residential gateway, these qualities are essential."

"CiaoLab's HomeStation offers an attractive combination of features for addressing both home entertainment and residential gateway applications," said Ken Lowe, vice president of business development for Sigma Designs. "Our EM8400 is an excellent choice for the HomeStation, complementing their focus on broadband connectivity with video-on-demand."

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(TM) 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.

About CiaoLab

CiaoLab Technologies based in Italy, designs and builds second-generation Internet connectivity solutions for the customers of broadband, ISP and utility companies. CiaoLab's Internet connectivity solutions combine high power, low cost processors from Hitachi and National Semiconductor with embedded operating systems such as Microsoft CE, Windriver and Linux to produce compact and powerful solutions for InCar, InHome and indeed InAnything applications.

Safe Harbor Statement

This release contains forward-looking statements about the geographic scope and timing of the marketing of the CiaoLab Technologies Homestation set-top appliance discussed in this release. These statements are subject to many risks and uncertainties, including the potential for the marketing of this set-top appliance to be delayed or different in geographic scope from the statements made. Further risks are detailed from time to time in Sigma Designs' SEC reports, including its Form 10-K Report for 2001 and subsequent Form 10-Q filings.

Note to Editors: Sigma Designs, REALmagic and the REALmagic logo are either registered trademarks or trademarks of Sigma Designs, Inc. in the United States and/or other countries. All other trademarks or registered trademarks are the property of their respective owners