SigmaTel Selected to Drive the Entempo Rubato 20GB Hard Drive Audio Jukebox

Business Wire, Feb 16, 2005

AUSTIN, Texas -- SigmaTel Inc. (NASDAQ:SGTL), the market leader for portable audio System-on-Chip solutions for the MP3 player market, announces it was chosen by Entempo LLC to drive the new Rubato 20GB audio jukebox. Featuring ShoX(TM) technology, the Rubato uses the STMP3550 series solution from SigmaTel and supports MP3 and WMA digital audio formats along with Microsoft's new Windows Media Digital Rights Management (WM-DRM). The 20GB Rubato drive can hold on average over 5,000 songs as well as other data files and also supports voice recording, FM tuner functions and USB 2.0.

Although SigmaTel has many 1.0" hard-drive MP3 player designs on the market today, this 1.8" hard-drive Entempo design positions the company for the higher-end, higher-capacity market. As a 1.8" design, it is the first such SigmaTel solution to incorporate such a broad feature set. The Rubato currently contains a 20GB hard drive and will support capacities of 40GB and 60GB in the future. As the market for legitimate downloads expands, rights managed-based devices will allow users full access to their music libraries. The patented ShoX(TM) Audio Drive Protection System from Entempo is a unique shock-resistant feature which will afford the hard drive more protection than regular hard-drive MP3 players. In addition to these features, the Rubato also is packaged with a pre-installed version of MusicMagic(TM) software from Predixis, an application which allows for easy navigation of large music collections. The MusicMagic(TM) Mix feature creates instant playlists onboard the Rubato device.

"SigmaTel solutions afford us easy integration of advanced features and high-speed USB in a small form factor," said Randolph Kemps, Entempo's vice president of sales and marketing. "The Rubato is a product that brings the advantages of SigmaTel's technology directly to the jukebox segment of the MP3 player market."

"As the driver behind this great product, SigmaTel continues to expand its lead in the digital audio player segment," said Ron Edgerton, president and CEO of SigmaTel. "The Rubato shows how our solutions can reach into all extremes of this expanding market."

The Rubato from Entempo LLC will be available at major retailers and Internet resellers beginning February 21, 2005. The suggested retail price is $239.

For additional information on SigmaTel, please visit http://www.sigmatel.com.

For additional information on Entempo LLC, please visit http://www.entempo.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 presentation contains forward-looking statements based on current SigmaTel expectations. In particular, slides relating to SigmaTel's expectations regarding market sizes and anticipated growth, projected product roadmaps for audio codecs and USB peripherals, potential future product directions, potential future product applications employing SigmaTel products, and other slides addressing future events contain 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 these and other 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, July 20, 2004 and October 19, 2004, the Form 10-K that was filed on February 17, 2004, and the Form 10-K that SigmaTel filed February 8, 2005 covering the annual period ended December 31, 2004.

SigmaTel is a registered trademark of SigmaTel. 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.