MEDIA CONTACT             INVESTOR RELATIONS CONTACT                              
Andy Marken               Carol Kaplan                                     
Marken Communications     Sigma Designs, Inc.                              
Tel 408/986-0100          Tel 408/957-9891                                
[email protected]           [email protected]               

For Immediate Release

Sigma Designs Demonstrates Advanced Set-Top Box Development Platform for Microsoft TV at the Western Cable Show

Sigma Is the First Company to Provide DVD Playback for Microsoft TV

LOS ANGELES, CA (December 14, 1999) Sigma Designs, Inc. (Nasdaq SIGM), a recognized leader in digital video solutions, today announced that its REALmagic EM8220-based advanced set-top box development platform supports both DVD and DVB playback for Microsoft TV (Nasdaq MSFT). The advanced set-top box is being demonstrated in the Microsoft booth (Booth #2311) at the Western Cable Show at the Los Angeles Convention Center December 14-17. The combination of DVD Video playback and satellite or terrestrial DVB broadcasting applications with a Microsoft TV-based device represents a major breakthrough in home convergence appliances.

In addition, Sigma Designs will host a hospitality suite next door, at the Holiday Inn City Center in Los Angeles December 14-15 to demonstrate one of the hottest trends in semiconductors todaybringing MPEG-2 decoders to digital consumer applications such as the advanced set-top box. The Microsoft TV software platform is also being demonstrated by iGST, Sigma Designsí technology partner, at the iGST hospitality suite at the Los Angeles Bonaventure Hotel.

The Sigma advanced set-top box development platform provides a low-cost, easy-to-use solution for the convergence of web browsing, WebDVD, interactive digital satellite or cable TV, and MPEG-2 applications such as pay per view movies and video on demand, delivering new levels of interaction to the viewing experience.

The market for interactive video services such as displaying Internet web content, e-mail, e-commerce, and video on demand on the television set is expected to reach $4.2 billion by 2005, according to DFC Intelligence, an industry research group. Similarly, the demand for broadband network deployment to the home, a 1.5 million unit market, is expected to grow about 118% annually over the next four yours, according to Dataquest.

About Sigma Designs
Sigma Designs is an acknowledged leader in the fast-growing digital video market. Sigma specializes in digital video encoding/decoding for the PC DVD market, for video streaming over corporate Intranets and extranets, and for the emerging set-top box/information appliance market. Sigma is a driving force in advancement of digital video technology used in high-speed, high-bandwidth transmission for business, home, and education markets. Sigma Designsí products, marketed under the REALmagic trade name, are sold worldwide through a direct sales force, distributors, and original equipment manufacturers (OEMs). For additional information, visit the Company's web site at http//www.sigmadesigns.com.

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