Sigma Designs announced that it has reached an agreement regarding the election of directors at the company's 2012 Annual Meeting of Shareholders with Potomac Capital Partners III, L.P. Under the terms of the agreement, Potomac and Sigma each agreed to vote their respective proxies at the 2012 Annual Meeting to elect two new directors recommended by Potomac, Eric B. Singer and Mark J. Bonney, and two incumbent directors recommended by Sigma, Thinh Q. Tran and Lung C. Tsai. In addition, effective immediately following the Annual Meeting, the number of directors on Sigma's Board will increase from four to five members. Each of the individual continuing directors has confirmed his intent to appoint Maury Austin, former Chief Financial Officer of MIPS Technologies, Inc., to serve as a fifth director.

Mr. Austin's selection was the result of a collaborative process conducted by the Board and Potomac to identify a qualified, mutually agreeable, fifth director. Eric B. Singer has over 17 years of experience as an investor in the semiconductor industry. Mr. Singer has served as a co-managing member of Potomac Capital Management III, L.L.C., the general partner of Potomac Capital Partners III, L.P., since March 2012.

Since May 2009, Mr. Singer has served as an advisor to Potomac Management and its related entities, and has been a member of Potomac Capital Management II, L.L.C. since January 2012. Mark J. Bonney has served as Executive Vice President and Chief Financial Officer of Direct Brands, Inc. since March 2010. Maury Austin has more than 25 years of corporate finance experience in senior executive positions at established technology companies.

He currently serves as a strategic advisor for technology-oriented businesses. From March 2008 to December 2011, Mr. Austin served as Chief Financial Officer of MIPS Technologies, Inc.