SigmaTel D-Major Audio Decoders to Drive Next Generation Digital Audio MP3 Flash Players From Creative Labs Inc

Business Wire, Jan 6, 2004

Business Editors/High-Tech Writers

2004 International CES

AUSTIN, Texas--(BUSINESS WIRE)--Jan. 6, 2004

SigmaTel Inc. (Nasdaq:SGTL) today announces that the latest D-Major(tm) audio decoder products, the STMP35xx family, has been selected by Creative Labs Inc. to drive their next generation MP3 players. Creative Labs, maker of the revolutionary Nomad MuVo MP3 flash player, first introduced in July of 2002, will standardize on D-Major technology for their future Hi-Speed USB 2.0 flash player designs, with players to ship in the first quarter of 2004.

"Creative continues to be a leader in the MP3 player market," says Ron Edgerton, president and CEO at SigmaTel(R). "We are delighted that Creative has standardized their new designs around SigmaTel's next generation of MP3 products. This strategy demonstrates their commitment to excellence as well as their vision for continuous product enhancements. We will continue to work closely with Creative on current and future innovations and are excited to be a part of their endeavors."

"The relationship between Creative and SigmaTel, from audio codecs in PC sound cards to controllers for MP3 players, is one that remains strong and successful," says Craig McHugh, president of Creative Labs Inc. "For us to standardize on SigmaTel technology going forward was an easy decision to make."

For information on Creative Labs Inc., please visit www.creativelabs.com.

For information on the D-Major audio decoder product line, visit www.sigmatel.com.

About Creative Labs:

Creative (Nasdaq:CREAF) is a worldwide leader in digital entertainment products for PC users. Famous for its Sound Blaster(R) sound cards and for launching the multimedia revolution, Creative is now driving digital entertainment on the PC platform with products like its highly acclaimed NOMAD(R) Jukebox. Creative's innovative hardware, proprietary technology, applications and services leverage the Internet, enabling consumers to experience high-quality digital entertainment -- anytime, anywhere.

About D-Major:

D-Major(tm) audio decoder solutions from SigmaTel provide high-quality audio playback for portable digital audio devices such as MP3-style players. As a battery-optimized System-on-Chip design, D-Major products offer a high level of integration and quality at a lower system cost, making portable audio devices more attractive to a larger audience.

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 prospectus filed Sept. 19, 2003, and the Form 10Q that was filed on Oct. 29, 2003.

D-Major, C-Major, GoChip and Universal Jacks are trademarks and SigmaTel is a registered trademark of SigmaTel Inc. All other products and brand names as they appear in this release are trademarks or registered trademarks of their respective holders. All specifications may be changed without notice.