Sigma Designs Announces New Subsidiary Company Focused on the Document
Imaging Market

Sigma Designs Imaging Systems (SDIS) combines resources of DocuPoint and
Sigma Designs' Existing Display Imaging Business

FREMONT, Calif., February 8, 1994 -- Sigma Designs, Inc. (NASDAQ:SIGM), a
leading manufacturer of multimedia computer products, today announced that
it has formed a new subsidiary company, Sigma Designs Imaging Systems,
Inc. (SDIS), dedicated to offering a range of high-performance products
for the document management and imaging markets. Sigma Designs will
combine the resources of its subsidiary company, DocuPoint, with its
existing line of imaging display products into a single subsidiary
company, known as SDIS. Utilizing the imaging technology base that Sigma
has developed over the last decade and integrating second-generation
document imaging technology designed by DocuPoint, SDIS will focus on
providing complete solutions for the fast-growing document management and
imaging market.

In addition, Bryan J. Foertsch, formerly Vice President of Marketing and
Sales of DocuPoint, has been named President and CEO of Sigma Designs
Imaging Systems. Foertsch, 46, will report directly to Sigma Designs'
Chairman and CEO, Thinh Tran, and will be responsible for managing all
company activities related to the broadened imaging product line.
Previously, Foertsch served as Director of Sales and Channel Development
at Octel Communications Corporation, Vice President of Ashton Tate's U.S.
SQL System Products Division, Vice President of North American Sales for
GE Calma, and Vice President of Sales and Marketing for Centennial
Computer Corporation. Foertsch also held senior sales positions at Digital
Equipment Corporation and Singer Business Machines.

"Concentrating Sigma's imaging business into one subsidiary company has
far-reaching strategic significance," said Thinh Tran, chairman and chief
executive officer of Sigma Designs. "SDIS will now focus entirely on the
imaging business, continuing to pioneer new advances in this marketplace.
Changing the name of the company better reflects SDIS' dedication to
offering complete imaging solutions for client/server and information
systems environments. At the same time, Sigma Designs can now clearly
focus its development and marketing efforts on providing state-of-the-art
multimedia products."

"I'm delighted to announce Bryan's promotion to President and CEO of SDIS,"
continued Tran. "Bryan has done an exemplary job managing DocuPoint's
sales and marketing functions, and I have complete confidence that he will
continue to excel in his new role at SDIS."

Sigma Designs Imaging Systems' product line will now include Sigma Designs'
high-resolution monitors -- the ergonomically-acclaimed ErgoView line of
ultra-high refresh color monitors and the flagship line of MultiMode
multiple resolution monochrome and grayscale monitors -- for both
PC-compatible and Macintosh computers. In addition, DocuPoint's complete
line of scalable, high-performance document imaging and optical storage
systems for workgroup, departmental, and enterprise-wide applications and
image-enabling software will now be sold under the SDIS label to a network
of value-added resellers, system integrators and national distributors.

"Sigma's line of high-resolution, large-screen display systems are
excellent complements to the existing line of DocuPoint client/server
imaging enabling software and image storage solutions," said Bryan
Foertsch, president and chief executive officer of Sigma Designs Imaging
Systems. "I'm very excited to be given the opportunity to merge these two
business into one new company, highly focused on the imaging market, where
we will continue to design, market and service our combined customer base
with the most technologically innovative imaging solutions."

Sigma Designs will now focus entirely on the burgeoning multimedia personal
computer market. Last Fall, the Company introduced a breakthrough
multimedia product called ReelMagic. ReelMagic is the first
consumer-priced MPEG (Motion Picture Experts Group) playback controller
for the PC, delivering full-screen, full-motion, full-color video and
CD-quality stereo sound from a single-speed CD-ROM. The ReelMagic board
(SRP $449) and the ReelMagic CD-ROM Upgrade Kit (SRP $799) are now
shipping. An array of new generation MPEG software titles are available
for ReelMagic with full-screen, live action video providing astounding
realism to games, business presentation, training, and multimedia
applications.

Sigma Designs Imaging Systems is headquartered at 2701 Bayview Drive,
Fremont, California, 94538; Tel: (800) 437-4624 or (510) 770-1189; Fax:
(510) 770-2993.

Sigma Designs, headquartered at 47900 Bayside Parkway, Fremont, California
94538, can be reached at (800) 845-8086, (510) 770-0100 or Fax (510)
770-2640.

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