Sigma Designs Opens ReelMagic DOS Application Programming Interface (API)
Command Set Royalty-Free to PC Hardware Manufacturers

Multimedia Industry Leaders Endorse Sigma Designs' ReelMagic DOS API as the
Standard for MPEG Software Development

FREMONT, Calif., May 20, 1994--Sigma Designs, Inc. (NASDAQ:SIGM), a pioneer
in the development of affordable Moving Picture Experts Group (MPEG)
technology for the PC, announced today that it has opened the command set
of its ReelMagic DOS Application Programming Interface (API) to PC
hardware manufacturers. With broad backing from leaders in the multimedia
industry, Sigma Designs is licensing its ReelMagic DOS API royalty-free to
encourage ongoing MPEG software development, and to offer one proven DOS
API as the standard for interactive MPEG software development. IBM, C-Cube
Microsystems, S3, Trident Microsystems, Aris Entertainment, Activision,
The Software Toolworks, ReadySoft, Graphix Zone, Dynaware USA, Hyundai
Electronics, and over 130 other software developers are among the
companies supporting the ReelMagic DOS API as the MPEG development
standard.

The ReelMagic DOS API command set and development tools already have been
licensed on a royalty-free basis to over 130 software developers since May
1993. Now, in an effort to aggressively stimulate the MPEG market, Sigma
Designs is also offering its ReelMagic DOS API royalty-free to hardware
manufacturers and chip makers. To date, the ReelMagic DOS API is the only
standard command set for MPEG software development, providing a
comprehensive development environment. The API is based on the combined
efforts of engineers from Sigma Designs and numerous independent software
developers.

"Sigma Designs was one of the early adopters of MPEG technology,
identifying MPEG as the only viable means of full-motion digital video
delivery," said Julien Nguyen, chief technical officer of Sigma Designs.
"MPEG technology enables digital video to take a dramatic leap forward,
letting users see TV-quality video on their desktop. Therefore, Sigma
Designs believes that aggressive MPEG hardware and software development is
of paramount concern to the entire PC multimedia industry. We're very
excited to be part of this move to standardize one MPEG DOS API. In the
months ahead, we expect to see an explosion of MPEG software development
based on the best multimedia development platform."

ReelMagic, the first affordable MPEG playback controller for the PC, began
shipping in October 1993. Based on the emerging MPEG standard for video
and audio compression, ReelMagic decompresses MPEG content in real-time,
allowing up to 74 minutes of full-screen, full-motion, full-color video
and CD-quality audio to be played back from a single CD-ROM. A new
generation of interactive entertainment, education, training, and business
presentation software applications are available or in development for the
ReelMagic platform. Currently, there are over thirty new entertainment,
education, and reference titles available for ReelMagic. More than a dozen
entertainment titles are expected to ship within the next thirty days.

"I am very impressed with ReelMagic's interactive MPEG playback
capabilities," said Karl LaWall, IBM PC DOS brand manager. "Moreover, MPEG
is one of the most important elements in multimedia video creation. Sigma
Designs' ReelMagic DOS API is a powerful and logical choice for an
industry standard MPEG development platform."

"Sigma Designs has a proven MPEG playback product for the PC with
ReelMagic," said Dr. Alexandre Balkanski, executive vice president of
C-Cube Microsystems. "We're excited about Sigma's announcement to offer
their API royalty-free to hardware and software companies, and expect this
move to stimulate tremendously the creation of interactive MPEG titles for
the PC."

"Sigma Designs' robust ReelMagic API allowed us to incorporate astounding
features in the MPEG version of Return to Zork," said Robert Kotick,
chairman and chief executive officer of Activision. "We support the
ReelMagic API as the industry standard for MPEG development and plan to
release new titles based on it."

"Trident fully supports the ReelMagic API as the MPEG development
standard," said Pier Del Frate, director of multimedia marketing at
Trident. "MPEG represents the future of digital video and we believe it's
necessary for the industry's hardware and software companies to all
develop products based on a single API standard."

"S3 supports Sigma's effort to create one standard for MPEG development
based on the ReelMagic API," said Neal Margulis, director of business
development at S3 Inc. "We expect MPEG to become much more prevalent in
the industry over the next year and one development standard allows
applications greater cross-platform support."

"We fully support and appreciate this decision by Sigma Designs," said
David Foster, President of ReadySoft. "Proprietary systems have caused
problems in several other situations in this market. And we feel that
Sigma's move will be a big push for the MPEG industry, and avoid all the
problems we've seen in other multimedia markets. With two ReadySoft titles
already developed using the ReelMagic API, and more on the way, we hope
that other hardware manufacturers will be quick to adopt Sigma's API as
the industry standard."

"I think making the ReelMagic API available to both hardware and software
companies is great news for MPEG and a good move by Sigma," said Chris
Kitze, President of Aris Entertainment. "It should certainly help to
expand the market. It's what's been waiting to happen for the OM1 group
and it's a real boost."

"The ReelMagic API is particularly attractive for edutainment titles," said
Bob Goldberg, President of The Software Toolworks. "Titles like The
Software Toolworks World Atlas and 20th Century World Almanac will benefit
from its robust feature set."

"By opening up the ReelMagic API to PC hardware companies, Sigma Designs
has helped to increase dramatically the number of MPEG playback sites,"
said Chuck Cortright, president and co-founder of Graphix Zone. "MPEG is a
booming market. We're already developing an MPEG version of our
revolutionary Prince Interactive music CD-ROM and we're eager to develop
more titles in this area that take advantage of the range of compatible
hardware."

"We've already implemented Sigma's API on our Express Tool, which can
easily create user interfaces and video clip databases," said Toshi Ide,
President of Dynaware USA, Inc. "We've found Sigma's API is very powerful
for developers to take advantage of full-motion MPEG video. We're excited
about Sigma's decision because it will boost the next generation of
multimedia title development."

The ReelMagic DOS API is available now on a royalty-free basis to hardware
manufacturers and software developers. To obtain more information on the
ReelMagic DOS API, contact the Sigma Designs Software Developer Group at
(510) 770-0100 extension 2260.

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 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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