Samsung and Sigma Launch Second Generation Support for Microsoft® Mediaroom™

Samsung Electronics and Sigma Designs (Nasdaq: SIGM), a leader in digital media processing SoCs for consumer electronics, today jointly announced that Samsung will be delivering the SMT-E7200 line of set-top box products, based around Sigma’s SMP8654 media processor system-on-chip (SoC), and supporting Microsoft’s Mediaroom client.

The new SMT-E7200 from Samsung ushers in a new generation of IPTV set-top boxes which provide a substantial improvement in performance and cost-effectiveness. These set-top boxes are initially targeted for deployment in Europe and are currently being integrated to run the Microsoft Mediaroom client.

"Samsung’s top goal is to ensure satisfied telco operators by providing the highest quality and performance available in a Mediaroom set-top box,” said Mr. Hee-Won Park, vice president of digital set-top box R&D, Samsung Electronics. "Microsoft has established a unique level of quality and service with its Mediaroom IPTV platform, as their top tier telco customer base indicates. By using Sigma’s SMP8654 SoC, our SMT-E7200 set-top box delivers an outstanding high definition user experience along with the dependability of the number one component supplier to this market.”

Sigma’s SMP8654 builds on the successful legacy of its predecessor, the SMP8634. With over 50% more processing power, lower cost, and an enhanced set of peripherals, the SMP8654 represents a "second-generation” SoC for the Mediaroom ecosystem.

"We are proud of the success we have achieved with Microsoft and are excited to be working together with Samsung, one of the world’s foremost manufacturers of consumer products and solutions,” said Ken Lowe, vice president of strategic marketing, Sigma Designs. "We believe that Samsung has the business and technical strengths to become a substantial force in the set-top box market and will enhance the range of solutions available for the Mediaroom ecosystem.”

Microsoft’s Mediaroom platform has achieved unparalleled success in establishing the premier solution for IPTV deployments of all sizes. Mediaroom is the world’s most deployed IPTV platform, with a global customer base delivering services to more than 3.5 million subscriber households. The ongoing subscriber momentum for Mediaroom-powered services demonstrates a growing demand from consumers for new ways to watch TV beyond what traditional cable and satellite providers offer today. As this demand increases, Microsoft continues to bring new life to its vision for connected TV by unlocking additional avenues for consumers to experience TV on their own terms.

"We believe that a continually growing ecosystem reinforces quality of service for Microsoft Mediaroom-powered offerings by providing service provider customers and set-top box OEMs additional choices in SoCs,” said Steve Koepp, Sr. Manager, Business Development of Microsoft’s TV, Video & Music business.

About Sigma’s SMP8654 System-on-a-Chip Solution

Sigma’s SMP8654 media processor integrates a complete complement of next-generation capabilities for a single-chip system-on-chip (SOC) solution with a multi-core architecture, powerful multimedia processing, robust content security system, and a full complement of peripherals. The SMP8654 features a powerful 500-Mhz Mips host CPU, a second processor called the IPU for offloading burdensome real-time tasks, and a third processor dedicated to managing security functions. Its advanced decoder engines support high definition video decoding of H.264 (MPEG-4 part 10), Windows Media^® Video 9, VC-1, MPEG-2 and MPEG-4 (part 2), the new AVS standard, and can support up to 16 independent streams on screen in different formats. High-performance graphics acceleration, multi-standard audio decoding, advanced display processing capabilities, and HDMI 1.3 output round out its multimedia core. Powerful content security is ensured through a dedicated secure processor, on-chip flash memory, and a range of digital rights management (DRM) engines for high-speed payload decryption. Additional functions include dual 32-bit DDR-2 memory controllers, dual Gigabit Ethernet controller, dual USB 2.0 controller, NAND flash controller, and SATA controller provide for a single-chip solution for most set-top boxes and consumer players.

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 SMP8654 and Samsung’s SMT-E7200, growing demand from consumers for new ways to watch TV, projected timing and extent of customer shipments as well as the expected use of Sigma’s media processor. Actual results could vary materially from those projected in the forward-looking statements as a result of various factors, including, but not limited to, worldwide economic conditions, the rate of growth of the IPTV market, changes in the customer’s ability or desire to incorporate Sigma’s SoCs into its product, consumer reaction to the new products and services being offered, the ability of Sigma to deliver sufficient quantity and quality of its SoCs, alternative offerings by competitors, and the ability of the parties to work together successfully to achieve the rollout of this new product. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Neither Sigma, Samsung nor Microsoft undertakes an obligation to publicly release or otherwise disclose the result of any revision to these forward-looking statements that may be made as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

About Samsung

Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunication, digital media and digital convergence technologies with 2005 parent company sales of US$56.7 billion and net income of US$7.5 billion. Employing approximately 128,000 people in over 120 offices in 57 countries, the company consists of five main business units: Digital Appliance Business, Digital Media Business, LCD Business, Semiconductor Business and Telecommunication Network Business. Recognized as one of the fastest growing global brands, Samsung Electronics is a leading producer of digital TVs, memory chips, mobile phones, and TFT-LCDs. For more information, please visit www.samsung.com.

About Sigma Designs, Inc.

Sigma Designs is a leading fabless provider of highly integrated SoC solutions that are used to deliver multimedia entertainment throughout the home. Sigma’s SoC solutions include media processors and wireless communication devices which combine semiconductors and software as critical components of high-growth consumer applications including IPTV-based set-top boxes, Blu-ray players, HDTVs, entertainment connectivity devices, and RF-based home control devices.

Headquartered in Milpitas, Calif., Sigma Designs also has design centers or sales representatives in Canada, China, Denmark, France, Japan, Korea (third party), Singapore, and Taiwan. For more information, please visit Sigma Designs’ web site at www.sigmadesigns.com.