EDS Specifies Sigma Designs NetStream 2 MPEG-2 Decoder for World's   Largest  
 Distance Learning Program; National Guard Educational Network   Enters Phase 2 
                       (Business Wire; 05/12/99)                       

MILPITAS, CALIF. (May 12) BUSINESS WIRE -May 12, 1999--Sigma Designs(R), Inc. 
(Nasdaq:SIGM) announced today that EDS (NYSE:EDS) has equipped all of the PCs 
in 70 classrooms with Sigma's NetStream(TM) 2 MPEG-2 decoders as part of the 
first phase of the development of the Army National Guard (ANG) educational 
network -- the world's largest distance learning program.

When completed next year, the network will connect more than 50,000 personal 
computers in nearly 1,000 classrooms throughout the United States, the Virgin 
Islands, Puerto Rico, and Guam.

The Army National Guard distance learning network was developed to provide 
training on the latest procedures while minimizing the time and expense 
required to assemble the more than 387,000 citizen soldiers for traditional 
classroom training.

"With strategically located video-enabled training facilities, no one will have 
to drive more than an hour for true, interactive training," explained Gary 
Yenser, EDS vice president of distance learning and collaborative technology. 
"The quality of training is also improved because every student has access to 
the best instructors, and commanders will have the assurance that all personnel 
have received the same level of instruction."

The individual classrooms support asynchronous transfer mode (ATM) networks to 
the desktop for high-speed delivery of audio/video feeds. Using video 
networking equipment from FVC.COM (Nasdaq: FVCX) and video conferencing 
software from Zydacron, the video feeds are delivered to each NetStream 2-
enabled PC.

Sigma's NetStream 2 provides the vital link for delivering high-quality 
streaming video and audio across the wide-area network to user PCs. To ensure 
that even live video is delivered with absolutely no skipping or jerkiness, 
NetStream 2 uses a precision variable clock (VCXO) to lock the NetStream 
decoder to the frame rate of the broadcast encoder.

With audio and video handled as a hardware function, NetStream 2 keeps the CPU 
free to perform other tasks, such as using a spreadsheet or word processor 
while video is playing in a window. Keeping the CPU freed up is critical for a 
wide variety of networked video applications because these applications 
frequently need to use the Pentium CPU for tasks such as network data transfer, 
desktop productivity software, interactive applications, and MPEG encoders, all 
technology elements used in distance learning.

To maximize the Army National Guard's return on investment, the nationwide 
educational network is being made available to meet the streaming video needs 
of state and local government as well as educational institutions and 
businesses.

"Even though we've only completed Phase 1 so far, colleges, universities and 
government agencies are already making heavy use of the broadband ATM network 
during non-Guard training times," said Yenser. "It's a cost-effective solution 
because they can lease the network and facilities for videoconferencing and 
training projects, or they can lease the network itself on an hourly basis. 
With the high-speed, wide-area ATM network and NetStream 2 at the desktops, end 
users can access video and data without compromising video quality or degrading 
the performance of the data network."

The fully meshed T3 backbone provides 45MB transmissions across switched 
virtual circuits (SVCs) to seven regional hubs. The regional hubs service the 
state and local hubs across multiple T1 lines. As usage of the National Guard's 
network increases, EDS will upgrade and scale the network accordingly. The 
network's connection migration path will go from T1 to T3, OC3 and, ultimately, 
OC12. The leased access program is expected to fund all of the network 
upgrades.

A plug-and-play solution, NetStream 2 supports Microsoft's DirectShow 2.0 API 
with DirectShow-compatible MPEG-2 drivers and features a PCI architecture for 
easy integration in Windows(R) 95/98 and Windows NT 4.0 environments. Available 
for immediate delivery, NetStream 2 has an MSRP of $395.  Company Profiles

EDS has been a leader in the global information services industry for more than 
35 years. The company delivers systems and technology expertise, management 
consulting, business process management and electronic business leadership. 
EDS, which reported revenues of $16.9 billion in 1998, offers solutions to 
improve the performance of more than 9,000 business and government clients in 
about 50 countries. The company's stock is traded on the New York Stock 
Exchange (NYSE:EDS) and the London Stock Exchange. Visit EDS via the Internet 
at http://www.eds.com.

Sigma Designs is an acknowledged leader in the fast-growing multimedia market. 
Sigma entered the multimedia market in 1993 with products based on the MPEG 
(Moving Picture Experts Group) standard for compressing and decompressing 
digital audio and video signals. Sigma is a driving force in advancement of the 
MPEG technology used in most multimedia products on the market today. Sigma 
Designs' products, marketed under the REALmagic trade name, include affordable 
MPEG/DVD video and audio decoding hardware used in consumer and commercial PC-
based applications. Sigma products are sold worldwide through a direct sales 
force, distributors, and original equipment manufacturers (OEMs). For more 
information, visit the Company's web site at http://www.sigmadesigns.com.

Editors and Analysts: For further information and interviews, please contact 
Andy Marken, [email protected] or 408/986-0100.

NetStream and REALmagic are trademarks, and Sigma Designs is a registered 
trademark of Sigma Designs. Other products and companies referred to herein are 
trademarks or registered trademarks of their respective companies.

   -0- gdr/sf*

 CONTACT: Sigma Designs, Inc.           Carol Kaplan, 408/957-9891 (IR)

          [email protected]                 or

          Marken Communications           Andy Marken, 408/986-0100 (Media)

          [email protected]

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