Sigma Designs Expands Its Highly-Acclaimed ReelMagic Product Line with the
Introduction of a CD-ROM Upgrade Kit

Included in the Upgrade Kit are MPEG Versions of Four Best-Selling
Entertainment and Educational Titles from Activision and Aris

Fremont, Calif., October 13, 1993 -- Sigma Designs, Inc. (NASDAQ--SIGM), a
leading manufacturer of PC and Macintosh displays and multimedia products,
today announced the ReelMagic CD-ROM Upgrade Kit. ReelMagic, a product
that allows ordinary PC systems to playback full-screen, full-motion,
full-color video and CD-quality digital stereo sound, was announced last
month. Rounding out Sigma Designs' product line for this breakthrough
technology, the upgrade kit provides a complete package including a
double-speed, MPC Level 2 CD-ROM drive, a pair of deluxe speakers, an
array of premiere entertainment and educational tides, and the ReelMagic
controller. Expected to ship by mid-November, the upgrade kit carries a
list price of just $849 and allows the user to immediately realize the
full potential of theater-quality video and sound on the PC.

"We've just completed a multi-city road show where we've demonstrated
ReelMagic to customers, analysts and the press," said Frank Leonardi,
executive vice president of sales and marketing for Sigma Designs. "The
interest level was and continues to be phenomenal for this breakthrough
technology. Now, with a complete family of products, including the
stand-alone board and the CD-ROM upgrade kit, as well as the support of
major software developers, we are gearing up to ship. In the months ahead
we expect ReelMagic compatibility to be an integral part of the next
generation of games, education, training, information systems, multimedia,
and business applications."

Bundled Excitement

Specially designed MPEG tides from Activision and Aris Entertainment are
included on CD-ROM with the ReelMagic Upgrade Kit:

Activision's Return to Zork

Activision's Return to Zork, the latest game tide in the classic Zork
series of adventure games, is planned to ship with the ReelMagic Upgrade
Kit. An epic adventure underground, this next generation title is an
interactive triumph of danger, intrigue, and low cunning and provides
spectacular sound and video effects that go far beyond an ordinary
computer game.

Aris Entertainment's Video Cube. Worldview and MPC Wizard

Three of Aris Entertainment's best-selling titles, now
ReelMagic-compatible, are bundled with the Upgrade Kit. Video Cube, a
radically new CD-ROM game that pits users against the Video Cube as they
unscramble images to solve the puzzle, comes with the product. For
optimizing a Windows multimedia system, Aris' MPC Wizard is included. An
extraordinary software program, MPC Wizard corrects any incompatibilities
with an MPC computer while its Best of MediaClips contains a collection of
over 120 images and sounds. Finally, for educational and training
purposes, Aris' Worldview provides hundreds of images, sounds and motion
video for explorers of all ages.

The ReelMagic Standard

ReelMagic is the first low-cost, MPEG (Motion Pictures Experts Group)
playback controller for 386/25 SX or DX personal computers. Based on the
MPEG compression standard, ReelMagic is compatible with the next
generation of MPEG software tides, resulting in dramatically enhanced
full-motion video with orchestrated 16-bit sound. Twelve next-generation
tides are slated to be available by late October with many more by year
end. Additionally, the VideoCD standard, backed by a multiplatform
consortium which includes C-Cube, Philips, JVC, Goldstar, Commodore, and
Samsung, is supported by ReelMagic. This means feature films and TV shows
in the VideoCD format will play on ReelMagic equipped PCs. Major movie
studios have already committed to releasing blockbuster films in this
format for the 1993 holiday season.

The ReelMagic controller displays 32,768 colors at resolutions of up to
1024 x 768 at 30 frames per second (fps) -- the same playback speed used
with today's home TV, but with better image resolution. The board attaches
to the VGA feature connector found on almost all VGA and SuperVGA display
controllers, so it can display all 32,768 colors on even a basic 16-color
VGA card. ReelMagic also uses MPEG audio decompression to provide 16-bit
stereo, CD-quality sound simultaneously with video. All popular DOS games
and applications that are compatible with either the SoundBlaster or AdLib
standard will run on ReelMagic.

Pricing, Warranty and Availability

The ReelMagic ISA stand-alone controller bundled with Activision's Return
to Zork carries a suggested list price of $449. while the ReelMagic CD-ROM
Upgrade Kit has a list price of $849 including the ReelMagic controller,
an MPC Level 2 CD-ROM drive, a pair of deluxe speakers, four premiere
entertainment and educational tides, a demo CD-ROM, an installation disk,
Windows and DOS drivers, and documentation. An extended five-year warranty
comes standard with the controllers and the CD-ROM drive is covered under
a one-year manufacturer's warranty. The ReelMagic controller will begin
shipping at the end of October 1993 and the ReelMagic CD ROM Upgrade Kit
will ship in November 1993.

Sigma Designs, headquartered in Fremont, CA, is a leading manufacturer of
high-resolution color, grayscale and monochrome display systems, as well
as multimedia and video display controllers. Products are available for
both PC and Macintosh compatible computers and are designed for end-user
productivity and comfort. All Sigma products are sold worldwide through a
network of dealers and distributors. For sales and developer information,
call 800-845-8086 or 510-770-0100, or fax 510-770-2640.

Sigma Designs
47900 Bayside Parkway, Fremont, CA 94538

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