Sigma Designs Enters 1994 Adding New MPEG Titles to its Family of
ReelMagic-Compatible Software

Announces Availability of ReelMagic Software Catalog

FREMONT, Calif., January 12, 1994 -- Sigma Designs, Inc. (NASDAQ--SIGM), a
leading manufacturer of multimedia products, today announced the addition
of five new software titles for its ReelMagic MPEG multimedia controller,
expanding the existing force supporting this development standard. Enticed
by ReelMagic's full-motion, full-screen, full-color capabilities,
ReadySoft, Software Toolworks, Tsunami Media, Interplay Productions, and
Sierra On-Line, leaders in the PC entertainment industry, plan to release
several interactive CD-ROM titles based on the ReelMagic technology. The
first of these titles are expected to be available in the February / March
time frame.

"Sigma recognizes that an exceptional hardware product such as ReelMagic
can only be successful if there is substantial software content," said
Thinh Tran, chairman and chief executive officer of Sigma Designs. "We are
working hand-in-hand with the industry leaders in PC entertainment and
educational software to ensure that the end-user has a wide variety of the
latest, greatest and most technologically advanced titles for ReelMagic."

ReelMagic is an innovative new MPEG multimedia playback controller which
allows ordinary PC systems to deliver full-screen, full-motion, full-color
video combined with CD-quality stereo sound -- all from a standard CD-ROM
drive. Based on the widely accepted MPEG (Motion Picture Experts Group)
standard for video and audio compression and decompression, ReelMagic
allows compressed MPEG software content to be decompressed in real-time
and played back at 30 fps (frames per second), the same playback speed
that is used with today's home TV.

The following titles are the latest additions to a long line of exciting,
interactive, multimedia software developed for ReelMagic. 

20th Century Video Almanac from Software Toolworks

With ReelMagic this almanac allows you to experience the 20th Century in
full-color video from the 1916 World Series to Woodstock. It includes over
100 historic video clips with synchronized sound, hundreds of pages of
photos and descriptions, and a dynamic timeline of video history.

Police Quest 4: Open Season from Sierra On-Line

The first ReelMagic-compatible title from Sierra On-Line throws you in the
middle of an unsolved serial murder case that you must solve. Police Quest
4: Open Season includes ultra-realistic photography of Los Angeles and
Southern California, as well as state-of-the-art sound effects and rock,
rap and hip hop music.

Man Enough from Tsunami Media

Man Enough is the ultimate social interactive game for the '90s male. This
game challenges users to utilize all their social finesse and expertise to
help win a date with selected members of the opposite sex. This social
adventure will take successful suitors to all ends of the earth to try and
impress the women of Man Enough dating service.

Lord of the Rings Enhanced CDROM from Interplay Productions. Inc.

The original Ralph Bakshi animated movie classic brings the sights, sounds
and senses of middle earth to life in J.R.R. Tolkien's The Lord of the
Rings Enhanced CD-ROM. Once you set foot into middle earth, there's no
turning back, you'll be immersed in the ultimate fantasy adventure.

Space Ace from ReadySoft

Space Ace is the second ReelMagic title from ReadySoft. The ReelMagic
version of Space Ace is remarkably close to the original laser disc arcade
version. A spectacular sci-fi adventure game, Space Ace uses breath-taking
full-screen animation and sound as you guide Ace, Earth's greatest hero,
through treacherous battles to destroy the Infanto Ray, save Earth, and
rescue the beautiful Kimberly.

Sigma Designs is committed to supporting the software development community
and delivering state-of-the-art products for the PC entertainment and
multimedia markets. Many software companies have embraced the ReelMagic
standard for entertainment and multimedia development. In addition to the
developers listed above, the following companies expect to release
ReelMagic-compatible titles this month: Activision, Compton's New Media,
Aris Entertainment, Access Softek, and EE Multimedia Productions.

ReelMagic 800 Number Catalog Ordering

In order for end-users to have easy access to the wealth of brand new
ReelMagic-compatible software, Sigma Designs has created a one-stop
shopping, 800 number catalog. The catalog is an initial means for
end-users to purchase newly released software, however by mid-year Sigma
Designs expects ReelMagic tides to be readily available in the retail
channel.

The catalog will be shipped with every ReelMagic box beginning this month.
Users can call 800-494-8848, 24-hours, 7 days a week and order an array of
titles from such leading software companies as Compton's New Media,
ReadySoft, Activision, Aris Entertainment, Software Toolworks, Interplay
Productions, EE Multimedia, and many others. With ReelMagic and the
addition of these software titles, users can transform their personal
computers into true, full-motion, interactive entertainment centers.

ReelMagic is available now from Sigma Designs for a suggested retail price
of $449. It comes bundled with a popular adventure game and a five-year
warranty on parts and labor.

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, 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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