Sigma Designs Debuts ReelMagic Breakthrough PC Card Delivering Full-Screen,
Full-Motion Video with CD-Quality Sound 

ReelMagic MPEG Playback Card Opens New Vistas for Games, Education and
Presentation Markets

FREMONT, Calif., September 13, 1993 -- Sigma Designs, Inc. (NASDAQ--SIGM),
a leading manufacturer of PC and Macintosh displays and multimedia
products, today announced ReelMagic MPEG multimedia playback controller
card for IBM-PC compatible computers. ReelMagic is a breakthrough product
that allows ordinary PC systems to playback full-screen, full-motion,
full-color video and CD-quality digital stereo sound -- all from a
standard CD-ROM. Due in retail stores by late October, ReelMagic will sell
for a suggested list price of $449, which represents a significant new
price-performance ratio in multimedia hardware.

ReelMagic is based on the important MPEG (Motion Picture Experts Group)
compression standard, which is compatible with a new generation of
multimedia software based on MPEG. Most importantly, the MPEG capabilities
of ReelMagic will allow standard PCs to take advantage of the upcoming
VideoCD standard. VideoCD allows movies, TV shows and other videos to be
played from a standard CD-ROM and is a multiplatform standard backed by
the VideoCD consortium, which includes 3DO, Philips, Sony, JVC, Masushita,
Goldstar, and Samsung. The broad backing behind VideoCD has already
attracted commitments from major movie studios to supply films in the
VideoCD format.

MPEG is an industry-standard technique for compressing video and audio.
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. In addition to allowing a PC to play films and
videos, the ReelMagic card can bring the benefits of MPEG compression to
interactive games, educational software and multimedia products. Other
markets will include public information kiosks, technical training
applications, and desktop video.

ReelMagic will be supported by more than 12 entertainment and multimedia
titles when it ships with more to be introduced by the end of 1993, ready
to bring the intensity and realism of full-motion video to MPC Level 1
computers. The first VideoCD titles are expected out in time for the 1993
Christmas season.

According to Frank Leonardi, executive vice president of sales and
marketing for Sigma Designs, "Video will now be displayed with realism
never before seen on a consumer desktop PC. ReelMagic's quality will rival
film in multimedia and educational applications. Best of all, it will
satisfy both end user and developer demands at a price that appeals to the
gamer as well as the business user. We believe ReelMagic will hit the
street at less than $400."

How Does It Work?

The ReelMagic card displays 32,768 colors at resolutions of up to 1024 x
768 at 30 frames per second (fps) -- this is the same playback speed used
with today's home TV, but with a higher image resolution. Compliant with
VideoCD and with the MPEG standard (ISO CD 1172), ReelMagic supports
playback of 30 fps (NTSC), 25 fps (PAL), and 24 fps (film) -- all directly
from a standard, single-speed CD-ROM drive. ReelMagic performs the MPEG
decompression using its own on-board processor, and does not rely on the
system's CPU. This allows ReelMagic to work with even older 386 systems.
Onboard MPEG decompression delivers simultaneous audio and video,
eliminating the synchronization problems associated with other CD-ROM
video standards. The ReelMagic board attaches to the VGA feature connector
found on almost all VGA and SuperVGA display cards, so it can display all
32,768 colors on even a basic 16-color VGA card.

ReelMagic uses MPEG audio decompression to provide 16-bit stereo,
CD-quality sound simultaneously with video. ReelMagic also doubles as a PC
sound card that supports both Windows and DOS sound standards. ReelMagic
works with all popular DOS games and applications that are compatible with
either the SoundBlaster or AdLib standards. Because ReelMagic provides
both 8- and 16-bit PCM sound at a sampling rate of 44.1 kHz and OPL-2 FM
synthesis, users can take advantage of the large installed base of both
Windows and DOS software applications that incorporate sound capabilities.
For users wishing to add other audio features -- such as recording --
ReelMagic can coexist with a second sound card.

Minimum system requirements include a 386SX/16 or higher PC compatible
computer, 2MB RAM, 2MB free hard disk space, VGA or SuperVGA card with
VESA standard feature connector, VGA or multisync display, CD-ROM drive
capable of 150KB/second sustained transfer, Microsoft Windows 3.1 or
later, and DOS 5.0 or later.

The ReelMagic Standard

Because of the breakthrough represented by ReelMagic, it is fast becoming a
standard for MPEG entertainment and multimedia development. Major
entertainment software titles already are under development by such
leading companies as Access, Activision, Aris, Interplay, Psygnosis,
Readysoft, RainMaker Software, Solid Ideas, Sierra On-Line, Trilobyte, and
many more. To ensure that a broad selection of software titles are
available at the launch of ReelMagic, Sigma Designs has created an
Applications Programming Interface (API) and a set of development tools
that were provided to developers early in the product design cycle.
Because ReelMagic supports important Windows standards such as MCI and OLE
2.0, it will be easy for developers to incorporate ReelMagic capabilities
into their own products and for users to add ReelMagic capabilities to
almost any application that supports OLE.

What's Included?

The ReelMagic MPEG playback card comes with an easy-to-use installation
program, a full array of drivers and system software, utilities, and a
MPEG game, thus providing a complete multimedia package right out of the
box. Included are these items:

** 'Return to Zork' from Activision CD-ROM 

Return to Zork is the latest game title in the popular Zork series of
adventure games. The ReelMagic compatible version of Return to Zork uses
ReelMagic to provide spectacular sound and video effects that go far
beyond an ordinary computer game.

** Enhanced Windows Driver/Utility

ReelMagic includes a driver which allows Windows multimedia applications to
display MPEG movies in documents. Windows applications compliant with
Microsoft OLE or the Microsoft MCI standard, such as Microsoft Word, Lotus
1-2-3 Release 4.0 and Asymetrix Compel, can include MPEG movies in
documents, bringing vivid action to business presentations, on-line
technical manuals, and many other previously static documents.

** Installation and Demo CD 

An installation CD-ROM included with ReelMagic permits the user to install
the card entirely through software without having to change jumpers or
flip DIP switches. An additional feature of the installation driver called
"Intelligent Reconfiguration" detects when the configuration of the
computer has changed and automatically reconfigures the ReelMagic card.
Since ReelMagic has no jumpers on the board, reconfiguration is very easy.
Also included on the CD-ROM are interactive demos from a number of current
and future ReelMagic-compatible titles.

Pricing and Warranty

The ReelMagic ISA controller will be available in late October 1993 for a
suggested list price of $449. An extended five-year warranty comes
standard with the controller.

Sigma Designs, headquartered in Fremont, CA, is a leading manufacturer of
high-resolution color, grayscale and monochrome display systems, as well
as multimedia and video display controllers. Products are available for
both PC and Macintosh compatible computers and are designed for end-user
productivity and comfort. All Sigma products are sold worldwide through a
network of dealers and distributors. For sales or developer information,
call 510-770-0100 or fax 510-770-2640.

Sigma Designs Inc
47900 Bayside Parkway, Fremont, CA 94538
510-770-0100,   fax 510-770-2640

----------Frequently Asked Questions and Answers-----------

Q: What is ReelMagic?

A: ReelMagic is a high-powered MPEG playback card with 16-bit DSP sound
capabilities. It can provide full-screen, 32,768 color video at 30 frames
per second, and CD-quality stereo sound -- all using only a standard
VGA/SVGA display card and an MPC1 compliant CD-ROM drive. In addition,
ReelMagic is fully compatible with DOS game sound and Windows sound, and
includes an interactive Demo CD of current MPEG titles and Activision's
adventure game, Return to Zork.

Q: What is MPEG?

A: MPEG - which stands for Motion Picture Experts Group -- is an
industry-standard technique for data compression that is optimized for
video and audio. By analyzing changes between frames, an MPEG encoder can
reduce the file size by a ratio of up to 200:1, thus enabling true
full-screen, full-motion video with CD-quality audio. Because MPEG files
can be transferred at rates as slow as 150 kilobytes per second, they can
be played back directly from CD-ROM. Because MPEG is an open standard, it
has attracted support not only from ReelMagic but also from vendors of
entertainment systems such as 3DO and CD-I.

Q: What about MPEG 2?

A: Currently, MPEG 2 is still being evaluated and is not a standard. MPEG 2
has been developed exclusively for transmission over TV cable networks -
it requires more storage space than is practical on a personal computer.
For example, with MPEG 1 compression, a CD-ROM can hold 74 minutes of
video and audio; using MPEG 2 compression, only 65 seconds will fit.

Q: What is the VideoCD format?

A: This is a platform-independent standard for delivering video and audio
to consumers on CD-ROMs. Recently, several consumer electronics
manufacturers, including Philips, JVC, Commodore, Goldstar, and Samsung,
announced they will support this form with upcoming VideoCD players.
Eventually, the hope is that VideoCD will promote one standard medium --
the CD-ROM - for distributing films, and that this medium will eventually
replace video tapes. In fact, Paramount Home Video has already begun
converting its libraries to MPEG format for VideoCD distribution. And when
the films are released, ReelMagic will be able to play them.

Q: What are the target markets?

A: ReelMagic is a product with broad potential appeal. ReelMagic is
especially well suited for the entertainment, education, training, and
presentation markets. Games developed for ReelMagic will launch the next
generation of computer entertainment. For education and training,
ReelMagic offers a low-cost solution for producing high-quality,
interactive learning. ReelMagic can enhance presentations to their full
multimedia potential by adding full-screen, high-quality video and
animation with CD-quality stereo sound.

Q: Is my current PC software compatible with ReelMagic?

A: Yes. ReelMagic is fully compatible with the DOS game standard and the
Windows sound standard, so any sound-capable software can take full
advantage of its high-quality, 16-bit sound functions. In addition, all
video-oriented applications compliant with MS Windows OLE 2.0 will be
greatly enhanced by ReelMagic.

Q: Do I need a 486 to use ReelMagic?

A: ReelMagic performs its MPEG decompression with its own onboard processor
-- independent of your system and CPU -- so it doesn't require a high-end
CPU chip. In fact, even a comparatively slow 16Mhz 386SX system is capable
of transferring data from the CD-ROM to the ReelMagic card at the minimum
required rate of 150 kilobytes per second.

Q: Will my 16-color VGA card impair ReelMagic's image quality or
performance?

A: No. As long as your display card has a standard, VESA-compatible feature
connector, it will support ReelMagic. Because ReelMagic simply uses this
feature connector to pass through its own video signal to the VGA display
card, ReelMagic is unaffected by the number of colors provided by your VGA
card. With ReelMagic, you always get the full video quality of 32,768
colors.

Q: How much new software will be available for ReelMagic?

A: A large number of leading game and multimedia developers are already
creating software to take full advantage of ReelMagic's impressive video
and audio capabilities. The latest titles in this new surge of
ReelMagic-supported programs include Return to Zork from Activision,
Dragon's Lair from Readysoft, The Eleventh Hour from Trilobyte/Virgin,
Lord of the Rings from Interplay, and World View from Aris.

Q: What do I need to take advantage of ReelMagic?

A: ReelMagic is a standard ISA add-in card that fits into any IBM
compatible PC with a standard AT-style bus. ReelMagic compatible software
is released on CD-ROM, and only a single-speed drive (MPC level 1) is
required.

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