SigmaTel and Xware Technology Introduce Development Kit for Hard Disk Drive MP3 Player Designs

Business Wire, July 14, 2004

AUSTIN, Texas -- SigmaTel Inc. (Nasdaq:SGTL), a leader in analog intensive, mixed-signal integrated circuits, and Xware Technology, a technology solutions provider focusing on research and development for high-end digital audio consumer products, today announced the availability of a software development kit (SDK) for hard disk drive MP3 players based on SigmaTel's STMP3500 product family.

As the leading supplier of MP3 audio controllers for the portable digital music player market, SigmaTel's current flash player development kit is already known for its extensive feature offerings and ease of use throughout the industry. Now, the SigmaTel D-Major(TM) solution is also available in a hard disk drive player development kit from Xware Technology and includes many of the same benefits of its flash player offerings.

"SigmaTel is continuing to penetrate the increasingly popular hard disk drive MP3 player market," says Danny Mulligan, vice president and general manager of the portable audio SoC group at SigmaTel. "By working with innovators like Xware Technology, we are able to leverage their expertise to enhance the battery life and form factor, and enable customers to get their products to market quicker at a lower cost."

"SigmaTel is well known for providing the lowest cost, most highly integrated solution in the MP3 player market, and Xware is proud to be aligned with promoting their solutions," says Marc Stimak, CEO of Xware Technology. "With this kit, Xware can help SigmaTel build on its expanding hard disk drive MP3 player offerings which will enable customers to bring even more exciting products to market."

For more information on SigmaTel Inc., please visit www.sigmatel.com.

For more information on Xware Technology, please visit www.xwaretech.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. We provide our customers complete, system-level solutions that include highly-integrated ICs, customizable firmware and software, software development tools, reference designs, and applications support. Our focus on providing system-level solutions enables our 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.

About Xware Technology:

Xware Technology is a technology developer and integrated solution provider focusing on providing custom SigmaTel-based reference designs for MP3 manufacturers and ODMs. A leader in MP3 system design, Xware offers such features as FM radio and voice record, multi-language support, OLED display support, advanced user-interface options, and proprietary low-cost XMRAM(TM) internal cache memory. All Xware reference designs are mass-storage enabled. Xware Technology has worked closely with SigmaTel for the last four years as a strategic development partner.

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 and April 20, 2004; and the form 10-K that was filed on February 17, 2004.

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