Sigma Designs, Inc. : Sigma Designs Enables Cost Effective HD Video Conferencing to the Living Room

FOR IMMEDIATE RELEASE: SIGMA DESIGNS ENABLES COST EFFECTIVE HD VIDEO CONFERENCING TO THE LIVING ROOM Technologies Developed Specifically for the Living Room Enables High-Definition Video Conferencing for Applications like Skype TV and More CES 2012 - LAS VEGAS, NV. - JANUARY 10, 2011 - Sigma Designs, the world leader in connected media platforms, today introduced a suite of home video conferencing solutions aimed at the consumer electronics market. These new solutions, which include a HD Camera, a console and a remote control, takes advantage of Sigma Designs heritage as a IPTV STB provider to OEMs and service providers to add an immersive video conferencing experience that fits into any home. Sigma will be demonstrating two of these solutions at CES 2012 in Las Vegas.

This device combines Sigma's PL330 video encoder technology with its SMP8670 secure media processor technology, to combine home video conferencing solutions with video streaming services in a Set Top Box (STB) design. Sigma's team provides the hardware and software to develop user interface that enables seamless transition from watching video programs to making video conferencing calls, access video messages, manage contacts, and customize their profile and settings when connected to a HD television and a broadband connection. With the integrated HD camera, users can also record their own videos, which can be shared on Facebook, YouTube, or via email.
"Sigma Designs continues to be the leader in delivering innovative experiences to the connected home said Sal Cobar, executive vice president of sales and marketing at Sigma Designs. "Now, HD video
conferencing is, for the first time, extended to the living room, giving consumers an exciting and interesting new use for their television and set top box and allowing service providers to offer more value added solutions to their subscribers."

Video conferencing is becoming more prevalent in both our professional and personal lives. For instance, millions of consumers use free applications, such as Skype, to share a story, celebrate a birthday, and meeting with friends and family every day. The popularity is growing as these applications are now available on your phone or computer or a TV. Skype's initiative to offer Skype TV for the High Definition TV will dramatically grow the use of video conferencing. The barriers to the adoption of video by consumers have been cost and complexity. These new solutions from Sigma Designs overcome both barriers by offering OEMs a cost-effective, easy- to-manage video communications solution that is consumer friendly. Consumers will no longer require a PC and crowding around a small video camera to hold a family meeting

Sigma Designs worked closely with two Original Design Manufacturer (ODM) partners, Chicony Electronics Co. LTD, the largest digital camera/web camera manufacturer in the world and Microlink Communications Inc., a subsidiary of Foxlink Group that is focused on developing a variety of wireless products and is working in conjunction with Sigma to deliver multiple video conferencing solutions in a STB which will be submitted to Skype for certification.
The PL330 was developed specifically to capture high-definition video for video calling on set top boxes, connected media players, VoIP devices, video phones, video conferencing, TVs, and video surveillance devices. The Sigma Designs PL330 delivers high-performance, high-definition video encoding (1080p) at only 380mW - less than half the power of other solutions in the market.
Sigma's new platform features a highly integrated, single-chip design with a full high-definition encoder, which extends the performance of set-top boxes by enabling them to transcode and record H.264. By combining high-definition performance with a lower power footprint, Sigma's PL330 offers consumers two significant benefits: (1) the ability to run video conferencing applications in HD, on affordably priced USB-powered HD cameras, and (2) the ability for consumers to take video recorded on their set-top
boxes and stream directly to tablets and smart phones in their homes.
"Sigma Designs is an established video and networking innovator, and we understand how consumer needs differ from enterprise needs," stated Sal Cobar, Executive Vice President of Sales and Marketing at Sigma Designs. "By offering cost-effective, easy to deploy solutions to our partners, we believe we can deliver a high quality video experience traditionally enjoyed only by large companies using expensive equipment."
Sigma Designs is the only company which offers a "one-stop" solution for video conferencing in the
living room. Previously, this experience has typically been a one-to-one experience from a laptop or home computer, now Sigma extends the experience to the entire family.

Availability

The complete PL330 Video Conferencing Platform is available now in sample form for early access customers. Sigma Designs will be demonstrating, by appointment only at the 2012 Consumer Electronics Show in Las Vegas, N.V. (January 10th - 13th), at the Las Vegas Hilton.
About Sigma Designs, Inc.
Sigma Designs, Inc. (NASDAQ: SIGM) is a world leader in connected media platforms. The company designs and builds the essential semiconductor technologies that serve as the foundation for the world's leading IPTV set-top boxes, connected media players, residential gateways, home control systems and more. For more information about Sigma Designs, please visit www.sigmadesigns.com.

Sigma Designs and the Sigma Designs logo are either registered trademarks or trademarks of Sigma Designs, Inc. and its subsidiaries in the United States and other countries. All other trademarks mentioned herein are believed to be trademarks of their respective owners.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements about the anticipated features and benefits of Sigma's products and solutions. Actual results may vary materially due to a number of factors including, but not limited to, general economic conditions, including the rate of adoption of PL330-based video conferencing solutions or Sigma Designs SoCs in
general. Sigma's ability to deploy and achieve market acceptance for Sigma's products in these markets, the ability of its SoCs to compete with other technologies or products in these emerging markets as well
as other risks that are detailed from time to time in Sigma's SEC reports, including our quarterly report on
Form 10-Q as filed December 8, 2011. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Sigma undertakes no obligation to publicly release or otherwise disclose the result of any revision to these forward-looking statements that may be made as result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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