Sigma Designs Announces New MPC Level 2 Sound Enhancements for its
RealMagic Interactive MPEG Playback Products

FREMONT, Calif., September 26, 1994--Sigma Designs, Inc. (NASDAQ:SIGM), a
leading worldwide manufacturer of multimedia computer products, today
announced MPC Level 2 enhancements to its RealMagic full-screen,
full-motion video and audio playback controller. The RealMagic board now
includes full-featured, 16-bit sound card functionality supporting Sound
Blaster and Windows sound standards and direct interface to the most
popular CD-ROM drives -all for no additional cost. The new features now
will be standard in RealMagic and RealMagic CD-ROM Upgrade Kit packages.

"RealMagic, with dozens of interactive MPEG titles available today and
hundreds more on the way, delivers what people expected from PC multimedia
all along -- TV-quality, full-screen video and CD-quality sound -- real
multimedia," said Greg Jones, vice president of marketing for Sigma
Designs. "The enhanced RealMagic card will allow customers to free more
slots and gain more functionality at no additional cost -- a WIN, WIN
solution for both home and business users."

MPC Level 2 functions added to the RealMagic MPEG playback card include
full support for the MPC Level 2 audio specifications, such as
line/microphone input and joystick port and MIDI I/O support. In addition,
the card provides direct connector support for Sony and Panasonic CD-ROM
drives as well as the new generation of IDE CD-ROM drives. For many users,
these added functions will save three or more slots, avoid configuration
conflicts, and make room for more peripheral devices.

RealMagic is based on the MPEG (Moving Picture Experts Group) compression
standard for video and audio. MPEG can achieve tremendous compression
ratios, often as high as 200 to 1, which allow high-quality video and
audio to be played directly from a single-speed CD-ROM. In addition to
bringing the benefits of MPEG compression to interactive games, the
RealMagic MPEG playback card allows a PC to play feature films and music
video CDs, as well as support low-cost solutions for video information
kiosks, interactive training, and LAN-based video applications.

The RealMagic controller works with any 386SX/25 PC or higher and displays
128,000 effective colors at resolutions of up to 1024 x 768 at 30 frames
per second (fps) -- the same playback speed used with today's home
television. The board attaches to the VGA feature connector found on
almost all VGA and SuperVGA display controllers, and consequently it can
display all 128,000 effective colors even on a basic 1 6-color VGA card.
The enhanced features added to the RealMagic controller now support MPC
Level 2 functions, 16-bit sound and CD-quality stereo audio simultaneously
with MPEG video. All popular DOS games and applications that are
compatible with the Sound Blaster or AdLib sound standard will run on
RealMagic.

RealMagic is available now in three solutions: the RealMagic standalone
controller offers MPC Level 2 compatible sound features and MPEG video and
audio playback functions for a suggested retail price of $449; the
RealMagic Lite controller provides MPEG video and audio playback
capabilities for users with an existing sound card for $349; and the
RealMagic CD-ROM Upgrade Kit for $799 includes an MPC Level 2 CD-ROM
drive, the RealMagic MPEG video and audio playback controller, 15 software
titles, and high-quality stereo speakers. An extended five-year warranty
comes standard with all RealMagic controllers and the CD-ROM drive and
speakers are covered under a one-year manufacturer's warranty.

Sigma Designs, headquartered in Fremont, Calif., is a leading manufacturer
of technologically advanced multimedia products, including affordable MPEG
video and audio decompression hardware. All Sigma products are sold
worldwide through a network of dealers, distributors and original
equipment manufacturers. For sales information, call (800) 845-8086, (510)
770-0100, or fax (510) 770-2641.

Sigma Designs Inc
46501 Landing Parkway
Fremont, CA 94538

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