Sigma Designs ReelMagic CD-ROM Upgrade Kit Now Plays All Philips CD-i
DigitalVideo Titles

FREMONT, Calif., January 4, 1994 -- Sigma Designs, Inc. (NASDAQ--SIGM), a
leading manufacturer of multimedia products, today announced that its
ReelMagic CD-ROM Upgrade Kit will now play all Philips CD-i DigitalVideo
titles, adding to the growing list of software content available for the
ReelMagic platform. Feature movies and music videos in the CD-i
DigitalVideo format available for Philips home entertainment CD-ROM player
include such mega-hits as The Firm, Top Gun, Patriot Cames, The Hunt for
Red October, Star Trek VI, and Eric Clapton: The Cream of Clapton. The
ReelMagic CD-ROM Upgrade Kit is the only solution for the PC-compatible
computers which plays back full-screen, full-motion, full-color video and
CD-quality stereo sound from a standard CD-ROM, thus allowing feature
films to be watched on a computer screen.

ReelMagic technology, based on the widely accepted MPEG (Motion Picture
Experts Group) standard for video and audio compression, decompresses
software content in real-time and plays back 30 frames per second live
action video and stereo sound with astounding realism. Compatible with a
new generation of interactive software titles, ReelMagic and the MPEG
standard are supported by many leading entertainment, educational,
multimedia, and business presentation software developers.

"Sigma Designs is committed to delivering a plethora of software titles
that will play with our ground-breaking ReelMagic board," said Thinh Tran,
chairman and chief executive officer of Sigma Designs. "We have been
working very closely with all major software developers to ensure
availability of a wide variety of high-quality titles. Now, with our new
ReelMagic CD-ROM Upgrade Kit's ability to play Philips CD-i DigitalVideo
titles, a whole new area of software content will play on the ReelMagic
platform. Philips has done an exemplary job providing top-notch titles in
the CD-i DigitalVideo format. We are very excited that the ReelMagic
CD-ROM Upgrade Kit can benefit from their extensive development efforts,
allowing users for the first time to actually watch full-motion feature
films and music videos on their personal computers."

Philips CD-i DigitalVideo titles that will play on the ReelMagic CD-ROM
Upgrade Kit are available now for sale or rental at retail stores such as
Blockbuster Video and Circuit City, or by calling Philips' CD-i EXPRESS
ordering service at 1-800-824-2567.

The ReelMagic CD-ROM Upgrade Kit provides a complete multimedia package
based on the ReelMagic technology. The kit is comprised of the ReelMagic
board, a double-speed, MPC Level 2 CDROM drive, a pair of deluxe speakers,
and five premiere entertainment and educational titles valued at nearly
$6.00. The bundled MPEG titles, specially designed to work with ReelMagic,
include Compton's Interactive Encyclopedia MPEG Version 2.01 with over 25
MPEG video sequences from Compton's New Media; Return to Zork, the
spectacular new game with live action characters from Activision; and MPEG
versions of three best-selling titles from Aris Entertainment, Video Cube:
Space, World View and MPC Wizard. Expected to be available this month in
retail stores, the ReelMagic CD-ROM Upgrade Kit carries a suggested list
price of $849.

The new ReelMagic CD-ROM Upgrade Kit will be demonstrated playing Philips
CD-i DigitalVideo titles at the Computer Electronics Show (CES) in Las
Vegas from January 6 - 9 in Sigma Designs booth # 10855.

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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Philips CD-i Digital Video Titles
(Advertised in Philips CD-i EXPRESS Catalog)

Andrew Lloyd Webber: The Premiere Collection Encore
Apocalypse Now
Billy Ray Cyrus: Live
Black Rain
Bon Jovi: Keep the Faith
Bryan Adams: Walling up the Neighbours
Caesars World of Boxing
Eric Clapton: The Cream of Clapton
Fatal Attraction: Director's Cut
Hanna-Barbera's Cartoon Carnival
Patriot Games
Posse
Shari Lewis: Lamb Chop's Play Along: Action Songs
Sliver
Star Trek VI: The Undiscovered Country
Sting: Ten Summoner's Tales
The Best of Baby Songs
The Firm
The Hunt for Red October
The Naked Gun 2 1/2: The Smell of Fear
Top Gun
White Christmas

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