SigmaTel Powers New Rio Carbon Hard Drive MP3 Player

Business Wire, August 19, 2004

AUSTIN, Texas -- SigmaTel, Inc. (Nasdaq:SGTL), a leader in analog intensive, mixed-signal integrated circuits, announces that its D-Major(TM) MP3 audio controller was selected by Rio(R) to power its latest generation of MP3 players. The Rio Carbon, a 5GB(i) hard drive player, and three new flash-based players named Rio Forge.

The Rio Carbon offers 5GB of memory on a one-inch hard drive, up to 20 hours of battery life, a Hi-Speed USB connection and voice record capability. The player will store up to 80 hours or 1250 MP3 songs, or 160 hours or 2500 WMA songs (ii). The Rio Carbon will retail for $249 and be available in stores by the end of August. The three Rio Forge MP3 flash players, available in 128MB, 256MB and 512MB are built into a rugged design with up to 20 hours of battery life, Hi-Speed USB, FM tuner and stop watch. Each are upgradeable with SD(TM) or MMC(TM) memory cards and are capable of handling a 1GB memory card.

"By utilizing SigmaTel's MP3 controller expertise, Rio was able to deliver a mini-sized player with exceptional battery life and performance," said Hugh Cooney, president of Rio Audio. "We are able to provide a consistent user interface and feature set across the new Rio MP3 players due in part to their development platform and overall design philosophies."

"We congratulate Rio on yet another great line of products," said Ron Edgerton, SigmaTel's president and CEO. "Rio has always been a very important player in the MP3 player market. We are proud to be a part of their success."

For more information on SigmaTel solutions, please visit www.sigmatel.com. For more information on the Rio MP3 player offerings, please visit www.rioaudio.com.

About SigmaTel:

SigmaTel, Inc. a fabless semiconductor company headquartered in Austin,

Texas, designs, develops, and markets proprietary, analog intensive, mixed-signal ICs for a variety of products in the consumer electronics and computing markets, including portable compressed audio players, such as MP3 players, notebook and desktop PCs, DVD players, digital televisions, and set-top boxes. SigmaTel provides complete, system-level solutions that include highly-integrated ICs, customizable firmware and software, software development tools, reference designs, and applications support. The Company's focus is on providing system-level solutions that enable customers to rapidly introduce and offer electronic products that are small, light-weight, power-efficient, reliable, and cost-effective. SigmaTel is ISO 9001:2000 certified and is committed to providing customers with high performance, quality products along with superior customer service.

Cautionary Language:

This press release contains forward-looking statements based on current SigmaTel expectations. The words "expect," "will," "should," "would," "anticipate," "project," "outlook," "believe," "intend," and similar phrases as they relate to SigmaTel or future events are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of SigmaTel, but are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. A number of important factors could cause actual results to differ materially from those in the forward-looking statements, and there will be events in the future that SigmaTel is not able to accurately predict or control. For a discussion of factors that could impact SigmaTel's financial results and cause actual results to differ materially from those in the forward-looking statements, please refer to recent SigmaTel filings with the SEC, particularly the 424(b)(4) final prospectuses filed September 19, 2003 and February 19, 2004, the Form 10-Qs that were filed on October 29, 2003, April 20, 2004 and July 20, 2004 and the Form 10-K that was filed on February 17, 2004.

Other product and service names mentioned herein are the trademarks of their respective owners.

(i) 1GB = 1 billion bytes. Actual formatted capacity less.

(ii) At 128kbps MP3, 64 kbps WMA