Sigma Designs Introduces Low-Cost, MPEG Real-Time Compression
Solution for ReelMagic Software Developers

Broadens Developer Support Program for ReelMagic-Compatible Titles

FREMONT, Calif, January 5, 1994 -- Sigma Designs, Inc. (NASDAQ--SIGM), a
leading manufacturer of multimedia products, today announced a real-time
compression solution for software vendors developing content for its
ReelMagic platform. The first real-time MPEG compression product for
PC-compatible computers, the new system provides ReelMagic software
developers with a fast, easy and confidential method of compressing MPEG
video in real-time. The new real-time compression system also demonstrates
Sigma Designs commitment to fully supporting ReelMagic developers, thereby
ensuring an extensive array of titles will be available for its ReelMagic
platform.

The new real-time compression system provides a complete solution for
encoding software content in the MPEG format. The package includes a
real-time encoding compression board, Compaq ProSignia 486-66
high-performance computer system, two gigabyte SCSI hard drive, Betacam
VCR controller, double-speed CD-ROM drive, and the ReelMagic MPEG playback
card -- all the major components necessary for real-time encoding. The
system is entirely pre-configured by Sigma Designs in order to guarantee
full system compatibility.

"Most leading software companies are developing titles for our ReelMagic
platform," said Thinh Tran, chairman and chief executive officer of Sigma
Designs. "Currently, developers are sending material to outside service
bureaus to encode it in the MPEG format. Although there are many
high-quality services available for MPEG encoding, developers prefer the
convenience and speed of doing all the development work in-house. Our new
real-time compression system is the first product to offer low-cost MPEG
encoding on the PC. Now ReelMagic developers will be able to compress MPEG
software content in real-time, saving considerable time and scheduling
problems."

The real-time MPEG compression board installed in Sigma Designs' new system
is designed to encode content for the new generation of interactive
software titles which feature live action video and full audio. The
encoder board converts video source material to a manageable compressed
digital format which can be easily stored or communicated. The board
accepts Y/C component video and stereo audio inputs and produces
high-quality MPEG output in real-time. Additionally, the board supports
full SIF resolution video (352h x 240v x 30fps), 16-bit audio compression
and real-time MPEG system layer multiplexing.

Sigma Designs' ReelMagic is the first MPEG playback controller for the PC.
ReelMagic plays back full-screen, full-motion, full-color video and
CD-quality stereo sound from a single-speed CD-ROM drive. ReelMagic is
based on the widely accepted MPEG (Motion Picture Experts Group) standard
for video and audio compression, allowing software content to be
compressed by up to 200 to 1, and then decompressed in real-time. The
result is smooth, full-motion video playback at 30 fps (frames per
second), the same playback speed that is typical of today's home
television.

Many software developers have embraced the ReelMagic standard because it
allows them to create state-of-the-art interactive software. Due to the
immense interest in developing for the ReelMagic standard, Sigma Designs
has created a comprehensive developers program including a high-level API
(Applications Programming Interface), set of development tools, intensive
technical support program, training, and the new real-time compression
system.

Sigma Designs expects the new real-time compression solution for ReelMagic
to be available in the February/March 1994 time frame, only to authorized
Sigma ReelMagic developers, for $30,000. To learn more about Sigma
Designs' ReelMagic Software Developers Program contact a representative at
510-7702661.

Sigma Designs will be unveiling its real-time compression solution for
ReelMagic at the ReelMagic Software Developers Conference on January 5,
1994 at the MGM Hotel in Las Vegas. The new real-time compression package
will also be demonstrated to software developers at Sigma Designs' booth #
10855 at the Computer Electronics Show (CES) in Las Vegas from January 6 -
9, 1994.

Sigma Designs, headquartered in Fremont, CA, is a leading manufacturer of
technologically advanced multimedia products, as well as document image
processing display solutions. 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 Inc
47900 Bayside Parkway
Fremont, CA 94538
510-770-0100,  fax 510-770-2640

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