Activision's Top-Rated Return to Zork Now Available in the MPEG Format for
Sigma Designs' ReelMagic Playback Board

ReelMagic's MPEG Capabilities Set New Standards for CD-ROM Entertainment

FREMONT, Calif., June 15, 1994--Sigma Designs, Inc. (NASDAQ:SIGM), a
leading manufacturer of multimedia computer products, today announced that
its ReelMagic Moving Picture Experts Group (MPEG) multimedia playback
controller for the PC is shipping with an MPEG version of Activision's
best-selling CD-ROM title Return to Zork. Return to Zork is an interactive
adventure game which features visually spectacular graphics, one hour of
video and audio sequences from a cast of Hollywood actors and a multitude
of mind-bending puzzles. The new MPEG version of Return to Zork,
incorporating full-screen, full-motion video, transforms the game into an
interactive movie-like experience on the PC.

Activision's Return to Zork, the sixth and newest adventure in the Zork
series, has sold over 500,000 copies (OEM and retail) since its October
1993 release, and remains one of the highest selling adventure series of
all times. By taking advantage of ReelMagic's MPEG capabilities, this new
version of Return to Zork provides astounding full-motion video effects
that go far beyond any ordinary computer game, with realism never before
seen on a PC desktop.

"Return to Zork is the ultimate complement for our ReelMagic product," said
Thinh Tran, chairman and chief executive officer of Sigma Designs. "By
bundling Return to Zork with our ReelMagic products we are able to offer
users a real breakthrough in PC gaming--an affordably priced,
state-of-the-art interactive game package featuring live action
characters."

The new version of Return to Zork is now being bundled with Sigma's
ReelMagic controller (SRP $449) and ReelMagic CD-ROM Upgrade Kit (SRP
$799). Customers currently owning these ReelMagic products may receive the
MPEG version of Return to Zork free of charge by sending in their owner's
registration card.

"Return to Zork is one of the trailblazers in the emerging genre of
interactive entertainment incorporating Hollywood production values," said
Robert Kotick, chairman and chief executive officer of Activision. "Return
to Zork is an ideal title to be ported over to the ReelMagic platform.
ReelMagic brings a new level of realism to CD-ROM games and Activision has
therefore committed to developing more titles based on this platform."

ReelMagic is the first, affordable MPEG multimedia playback controller for
the PC, allowing a 386SX/25 or higher computer system to deliver
full-screen, full-motion, full-color video combined with CD-quality stereo
sound from a standard CD-ROM drive. Based on the widely accepted MPEG
standard for video and audio compression, ReelMagic allows compressed MPEG
software content to be decompressed in real-time and played back at 30
frames per second (fps), the same playback speed that is used with today's
home TV.

Activision is a publicly held developer and publisher of interactive
entertainment software for IBM compatible, Macintosh and other computers,
as well as Nintendo, Sega and 3DO game systems. With offices in New York,
Paris, London, Tokyo and Sydney, the company is headquartered at 11601
Wilshire Blvd., 10th Floor, Los Angeles, Calif. 90025. For information
call (310) 473-9200 or fax (310) 479-4005.

Sigma Designs, headquartered in Fremont, Calif., is a leading manufacturer
of technologically advanced multimedia products, including affordable MPEG
video and audio decompression hardware. All Sigma products are sold
worldwide through a network of dealers, distributors and original
equipment manufacturers. For sales information, call (800) 845-8086, (510)
770-0100, or fax (510) 770-2641.

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