SigmaTel Powers New Personal Video Recorders from GeCube; Full Featured PVRs Aimed Initially at Asia-Pacific Market

Business Wire, July 10, 2006

AUSTIN, Texas -- SigmaTel, Inc. (NASDAQ:SGTL), a leader in mixed-signal solutions, today announced that its PR818S system-on-chip (SoC) device is powering the new GeCube GC-PVR100 personal video recorder (PVR) device from Taiwan-based Info-Tek Corporation. These value-oriented PVRs will be marketed first in Taiwan and China, with expansion into European-branded products expected.

According to a May, 2006 report issued by market research firm In-Stat of Scottsdale, Arizona, PVR products have gone from niche to mainstream in just seven short years since their original introduction. In-Stat reported that 2005 worldwide shipments for PVRs reached 19 million, a 60 percent increase over the 11.9 million units shipped in 2004. The high-tech market research firm projects that worldwide unit shipment totals will reach 42 million by 2010. Worldwide PVR product revenues reached $6.6 billion in 2005, up from $4.5 billion in 2004, with North America and Japan accounting for 82 percent of all worldwide PVR product unit shipments.

"We believe that GeCube's PVR100, utilizing SigmaTel's proven MPEG-4 video technology, is perfectly positioned to achieve high PVR market penetration initially in Asia with its differentiated analog recording capabilities and attractive price point," said Mr. Larry Yeo, general manager of Info-Tek Corporation. "Additionally, users can view photos from memory cards and connect it via USB to personal computers to provide additional storage and video capabilities."

Hugh Cooney, the business general manager of SigmaTel's West Coast Imaging Center, said, "Our PVR solution offers high levels of integration and support and provides significant features at low bill-of-materials (BOM) costs. This gives companies like GeCube an excellent opportunity to exploit the rapidly expanding PVR market in Asia and beyond."

SigmaTel's PR818S delivers low power consumption with exceptional video quality for consumer portable products such as personal video recorders and digital camcorders. Its single chip design offers hard-wired MPEG-4 ASP/SP, MPEG-2 and JPEG CODECs and is capable of compressing and decompressing video streams up to NTSC and PAL video size resolutions at full frame rates of 30 and 25 frames-per-second respectively. ADPCM audio and full transcoding capabilities to and from MPEG-4 and MPEG-2 are also supported. In addition, the integrated ARM922T(TM) core eliminates the need for a system host processor and provides system flexibility via firmware.

Info-Tek Corp., established in 1990, has been primarily devoted to contract manufacturing services for motherboards and interface cards. Over the years it has grown its business to establish four main production centers both in Taiwan and China. The Multimedia Business Unit of Info-Tek is completely dedicated to the development, marketing and sales of GECUBE brand name products, and has its own, independent R&D team. It also has a complete marketing and sales network and can provide total multimedia solutions.

For more information on SigmaTel, please visit www.sigmatel.com. More information on GeCube is available at www.gecube.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 24, 2006, and the form 10-Q filed on May 10, 2006.