SigmaTel Portable Digital Audio Technology Drives Memorex Hard-Disk Drive MP3 Player

Business Wire, Jan 4, 2005

AUSTIN, Texas -- SigmaTel, Inc. (NASDAQ:SGTL), the market leader for MP3 audio controller chips within portable MP3 players, announces that its MP3 audio system-on-chip technology powers the Memorex MHD8015 1.5GB hard-disk drive MP3 player as well as multiple flash-based Memorex devices.

The MHD8015 is a 1.5GB, 1-inch hard-drive player that will hold up to 750 songs. Memorex, known for their high quality data storage media products, has enabled the MHD8015 as a USB mass storage device. Because of this, it can also double as a portable storage drive for other files, such as word processing documents and photos.

"Our mission is simple -- provide customers with the most innovative products," says Sean Smith, director of marketing at Memcorp, Inc. "Because of their extreme integration and innovation, SigmaTel portable digital audio solutions have helped us fulfill this mission to our customers."

Memorex MP3 players, including the MHD8015 and multiple flash-based designs, also driven by SigmaTel MP3 technology, are currently available at many major retail chains.

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

For additional information on Memorex, please http://www.memorexelectronics.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, July 20, 2004, and October 19, 2004, and the Form 10-K that was filed on February 17, 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.