Sigma Makes Standard MPEG-4 Video CODEC Available

Business Wire, June 26, 2002

Business Editors/High-Tech Writers

WORKSHOP AND EXHIBITION ON MPEG-4 (WEMP) SHOW

Video CODEC Technology Will Enable Users to

Create Personal Video Libraries Fully Compatible

With Next Generation Set-Top Appliances

Sigma Designs, Inc. (Nasdaq:SIGM), a leader in IP video streaming solutions, demonstrated today for the first time an MPEG-4 video CODEC that works as a plug-in under Windows(R) to encode digitized video content into fully compatible ISO MPEG-4 video files. The new CODEC is available now for download, free of charge, through Sigma's website (www.sigmadesigns.com) to support users wishing to build ISO MPEG-4 compatible content.

The emergence of a trend toward `MPEG-4 Ready' devices is generating increasing demand for fast and easy methods of encoding and producing MPEG-4 compatible files. In support of this trend, Sigma has developed its CODEC to ensure that users can develop content libraries in a manner fully compatible with the MPEG-4 video specifications and Sigma's silicon implementations. Using Sigma's new MPEG-4 CODEC, users will have the assurance of plug-n-play operation, much like the DVD standard has accomplished. In a similar manner, Apple is providing MPEG-4 encoding support in its recent release of QuickTime 6.0.

Tech-savvy consumers are increasingly utilizing more digital media content such as Internet downloads, digital cameras, camcorders and other forms of video entertainment. Encoding this content using MPEG-4 compression allows users to store more than two hours of high-quality video on a single CD. Likewise, due to the added compression efficiency, the DVD Forum may adopt MPEG-4 as the basis of its new red-laser high-definition DVD-Video (HD DVD-Video) -- taking advantage of the increased compression rate to offer higher quality content.

"We see widespread use of MPEG-4 creating a wave of efficient and interactive media that is supported in nearly all digital video appliances," stated Ken Lowe, Sigma Designs' vice president of Business Development. "We are continuing to develop a wide range of MPEG-4 products that offer high performance features and our goal is to ensure that users can enjoy a lifetime of compatibility by encoding their content only once."

MPEG-4 technology is quickly making its way into next generation, set-top appliances such as DVD players, broadband set-top boxes, cable boxes and Internet appliances. The majority of these new consumer appliances are based on the new line of MPEG-4 chipsets and solutions offered by Sigma Designs -- the leader in MPEG-4 decoder chips.

Companies such as e-BOX (the seven-member joint venture led by Pioneer and Sharp), NEC, Kreatel and Allwell are all launching next generation digital video solutions based on Sigma's EM8470 MPEG-4 decoder chip for set-top, DVD and streaming applications, in addition to products based on the recently announced EM8500 single-chip DVD player solution.

"MPEG-4 technology is emerging within the consumer marketplace, and Sigma Designs is ready with the technology necessary to meet this demand," stated Dr. Masao Sugimoto, executive corporate engineering advisor of Pioneer Corporation and president of e-BOX Corporation. "The increased availability of MPEG-4 through products that consumers can purchase and incorporate into their daily lives ensures the growth, development and long-term viability of this technology."

Sigma's new MPEG-4 software encoder/decoder is delivered as a Video-for-Windows CODEC, adding a fully compatible ISO MPEG-4 option to the Windows authoring environment. The new MPEG-4 CODEC features:

-- Full compatibility with ISO MPEG-4, advance simple profile, level 5, which ensures that encoded MPEG-4 content will offer the widest interoperability as well as plug-n-play simplicity with set-top appliances based on Sigma silicon.

-- Compatibility with Windows PC, 1.2 GHz Pentium 3 or Athlon CPU, allowing most later model computers to function as an authoring system for encoding MPEG-4 content.

-- Superior speed with single-pass encoding, where high quality encoding takes place at a rate that exceeds other encoders available on the market today.

"All products that support open-standards based MPEG-4, such as Sigma's new CODEC, are a benefit to our industry," said Julien, president and CTO of Envivio. "We have worked in partnership for well over a year with Sigma and are pleased to have a full range of interoperable products, which will include this new CODEC."

"We continue to work with Sigma Designs to speed the adoption of MPEG-4 standards-based technologies," said Marty Levine, vice president of Business Development at iVAST. "Interoperability between our complementary products will help drive the success of the MPEG-4 industry."

Sigma's new CODEC is available free of charge at its website (www.sigmadesigns.com) to enable users to encode and store their entire library of content in a ready-to-play format on CD or DVD media.

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, Calif., 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/.