Sigma Designs Premieres RealMagic Special Edition:
The Ultimate Multimedia Upgrade Kit

Most Advanced Multimedia Upgrade Kit Combines RealMagic Interactive MPEG
Full-Motion Video Playback with the Best Available PC Multimedia
Components

FREMONT, Calif., October 17, 1994 -- Sigma Designs, Inc. (NASDAQ:SIGM), a
leading manufacturer of multimedia computer products, today announced the
grandest of all PC multimedia upgrade kits. RealMagic Special Edition
Multimedia Upgrade Kit combines industry-leading CD-ROM drive and speaker
components, a VGA-to-TV signal converter, and a vast library of
full-screen, full-motion interactive software titles with its breakthrough
RealMagic Moving Picture Experts Group (MPEG) multimedia playback
controller for the PC.

Sigma Designs' Special Edition Multimedia Upgrade Kit brings RealMagic's
TV-quality, 30 frames-per-second interactive video playback and 16-bit,
CD-quality stereo sound together with Pioneer's DRM-604X 6-disc,
quad-speed CD-ROM changer, Advent Power Partners 570 harmonically-tuned
35-Watt-per-channel powered speakers, and a library of the latest MPEG
interactive titles. In addition, the kit comes with RealMagic PrimeTime, a
new Sigma Designs VGA-to-NTSC converter which allows computer displays on
any home television. Carrying a suggested retail price of $2,499,
RealMagic Special Edition Multimedia Upgrade Kit will ship in late
November 1994.

"Sigma Designs was the first to deliver affordable true multimedia
incorporating interactive, full-motion video," said Greg Jones, vice
president of marketing for Sigma Designs. "But for those power users who
want it all, we've brought together the top components to create the
best-of-breed multimedia upgrade solution to reflect RealMagic's
ground-breaking capabilities."

In addition to the library of MPEG interactive titles packaged with the
kit, RealMagic Special Edition offers discriminating users the ultimate
platform for playing the best of today's MPEG-based entertainment,
educational and business software titles in high-quality realistic video
and sound.

"The RealMagic Special Edition Kit is an ideal product for demonstrating
the convergence of PC and home entertainment," added Jones. "This
'convergence' trend is reinforced by the fact that innovative games,
on-line services, movies, and educational tools, now incorporating
interactive MPEG video and sound, are transforming the home PC into a
greatly expanded platform for family entertainment and learning."

RealMagic is based on the MPEG video and audio compression standard. MPEG
can achieve tremendous compression ratios, often as high as 200 to 1,
which allows high-quality video and audio to be played directly from a
single-speed CD-ROM. RealMagic brings the benefits of MPEG technology to
interactive games, feature films, music videos, educational software, and
other CD-ROM multimedia applications -- all in full-screen, 30
frames-per-second video. Other markets for RealMagic include low-cost
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, so it can display
full-screen, full-motion, full-color video on even a basic 16-color VGA
card. The RealMagic controller is also an MPC Level 2 compliant 16-bit
sound card, supporting CD-quality, stereo sound. All popular DOS games and
applications that are compatible with either the Sound Blaster or AdLib
sound standards will also run on RealMagic.

Included in the Special Edition kit is Pioneer's DRM-604X external CD-ROM
changer which allows the user to access up to six CD-ROMs instantly,
without swapping CDs. This leading-edge drive features a quad-speed, six
disc CD-ROM changer with transfer rates of over 600KB per second,
utilizing Pioneer's exclusive Quadraspin technology. The DRM-604X also
supports the latest in multisession technology and is Kodak Photo CD
compatible.

The RealMagic Special Edition Multimedia Kit also combines advanced speaker
technology from Advent. The award-winning Advent Power Partners 570 offer
a powerful amplifier and magnetic shielding in both speakers. In addition,
the Power Partners feature polypropylene woofers, liquid-cooled tweeters,
durable allow case, volume, bass and treble controls, and automatic
on/off/LED indicators -- to deliver an unsurpassed audio experience for
the most discerning listener.

Sigma Designs' new RealMagic PrimeTime VGA-to-NTSC converter card is also
packed in the Special Edition Kit. RealMagic PrimeTime enables users to
display computer applications on the TV. Further, the new converter card
propels the movement of the PC into the family room, by providing dual
functionality for the television.

Finally, the Special Edition Kit offers a vast library of RealMagic
Interactive MPEG entertainment and educational software titles to
demonstrate the amazing impact of full-motion video realism. MPEG versions
of the most popular game titles such as Return to Zork, The Horde,
Psychotron, and Flash Traffic transport the avid gamer into a realistic
world of fantasy and adventure. MPEG music videos and feature films allow
the multimedia enthusiast to experience the latest hits from * (the artist
formerly known as Prince), INXS or classic movies like Top Gun right on
their personal computer. And educational and instructional applications
like Compton's Interactive Encyclopedia or 20th Century Video Almanac
teach the user about the world in a powerful interactive environment
incorporating both sight and sound.

Pricing, Warranty and Availability

The RealMagic Special Edition Multimedia Upgrade Kit will be available in
November 1994 for $2,499. Other RealMagic solutions are also available
including: the RealMagic standalone controller combining MPC Level 2 sound
capabilities and MPEG video and audio playback functions for a street
price of $349; the RealMagic Lite controller providing MPEG video and
audio playback capabilities for users with an existing sound card for $299
street price; the standard RealMagic CD-ROM Upgrade Kit for a $699 street
price, including an MPC Level 2 CD-ROM drive, the RealMagic video and
audio playback controller, 15 software titles, and high-quality stereo
speakers; and the RealMagic PrimeTime, a VGA-to-NTSC converter card for
$179. An extended five-year warranty comes standard with all RealMagic
controllers. The CD-ROM drives 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 compression hardware. All Sigma Designs products are sold
worldwide through a network of dealers, distributors and original
equipment manufacturers. For 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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