SigmaTel Powers Ultra Miniature MP3 Player With Color Display; Klegg Mini is a Digital Media Hub That Fits on a Key Chain

Business Wire, Dec 7, 2005

AUSTIN, Texas -- SigmaTel Inc. (NASDAQ:SGTL), a leader in mixed-signal multimedia semiconductors, today announced that its portable audio System-on-Chip (SoC) solution powers Klegg Electronics' (Pink Sheets:KLGE) (www.kleggusa.com) new Klegg Mini MP3 player, an ultra miniature MP3 player with a color display. Despite its miniature size, the Klegg Mini is packed with features and provides users the capacity to hold over 250 songs, 10,000 photos or hours of voice recordings. The Mini Color Display MP3 player is powered by the SigmaTel STMP3550 and comes in three models and a variety of colors that offer 128 MB, 256 MB or 512 MB of flash memory. Klegg Electronics is a leading manufacturer and distributor of high-quality consumer electronics with a focus on designing a variety of products that work seamlessly together within the home.

"SigmaTel is committed to delivering technology solutions to its customers that provide them the design flexibility and necessary functionality to develop new devices that push the form factor design envelope without sacrificing functionality and audio quality," said Michael Wodopian, senior vice president, Portable System on Chip Group at SigmaTel. "The Klegg Mini Color Display MP3 player underscores how SigmaTel's highly integrated solutions can be used to develop new and exciting form factor MP3 players."

The Klegg Mini-128/256/512 Color Display MP3 players provide users the ability to listen to their favorite music, view their favorite photo collection and share the memories with loved ones. The Mini comes standard with a one-inch color LCD that offers 128x128 resolution and 4096 colors with full photo display capability. Measuring 1.8 inches in length, 1.6 inches in width and 1/2 inch thick, the Klegg Mini offers voice recording, audio playback in WMA and MP3 formats, slide show playback and supports USB 2.0. A USB rechargeable Li-ion battery offers users up to 26 hours of audio playback.

"SigmaTel is the proven leader in providing the industry with highly integrated audio solutions that allow companies like Klegg to push the edge of consumer electronics innovation and design," said Dennis Gentles, President of Klegg Electronics. "The SigmaTel solution was the clear choice for Klegg when designing and developing the Mini Color Display MP3 player, and SigmaTel is now Klegg's preferred supplier of audio SoC solutions."

SigmaTel's portable audio SoC solutions provide high-quality audio playback for portable devices such as MP3 players, language learners, and jukeboxes. Through patented semiconductor and software solutions, SigmaTel's product integration and support allows customers to develop multimedia devices with the longest battery life, smallest form factors and lowest system design costs in the market. The company's solutions offer market-leading benefits, including as much as a 30% lower bill of material costs, Hi-Speed USB 2.0, 50 hours of battery life on a single AA battery and incredibly small form factor designs as small as 14.5 square cm. With flexible software support and upgrade options, the SigmaTel SoC solution offers support for MP3 and WMA audio format algorithms as well as security in WMA DRM.

The Klegg Mini Color Display MP3 players can be purchased online directly from Klegg Electronics at http://www.kleggusa.com.

For more information on SigmaTel products visit, www.sigmatel.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 digital multimedia products in the consumer electronics and computing markets, including portable compressed audio players, such as MP3 players, notebook and desktop PCs, digital video cameras, multi-function peripheral products, 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 Form 10-K that was filed on February 8, 2005 and the Form 10-Q that was filed on November 10, 2005.