Tatung Launches New Digital STB2000 Set-Top Box Series Based on Sigma Designs' SMP8634 Media Processor

TAIPEI, Taiwan—(BUSINESS WIRE)—March 17, 2006— Tatung launched its new high-definition, digital set-top boxes with success at the 2006 Cebit in Hannover. These latest set-top boxes (STBs) deliver full high-definition video, up to 1080i resolution, while simultaneously supporting streams encoded under MPEG-2, VC-1 and H.264 (also known as MPEG-4 Part 10) compression. The Tatung STB2000 STB series are based on Sigma Designs' (Nasdaq: SIGM) SMP8634 media processor. In addition to traditional outputs such as component and composite, Tatung's new STBs also provide HDMI interface, which enhances the consumer entertainment experience. Currently many other telco companies have adopted Tatung's STB2000 series set-top boxes for their IPTV services.

The newly launched STB2000 hybrid functions not only as an interactive IPTV but also provides a digital TV tuner capability. The tuner capability will be supported under DVB-T standards in the first quarter of 2006, and later provide ATSC, DVB-C and DVB-S2. The STB2000 home networking feature can support mainstream products, such as Home PNA 3.0 and Home Plug.

"Tatung has already been in the advanced, digital set-top box market for six straight years," said W.Y. Lin, executive vice president of Tatung. "The STB2000 series is the most complete solution in the market, and its advanced features and quality can satisfy requirements for nearly all customer demand within the next five years. Sigma's SMP8634 media processor streamlines a myriad of capabilities and features into a solid, single-chip, system-on-chip solution. Moreover, the price point for the new STB is also attractive to telco and service providers. We are seeing a strong demand for this product in 2006, and service providers have progressively marketed the Interactive TV service. The STB2000 series will be the best platform and solution."

Most major middleware suppliers are developing support for Tatung's new STB2000. At the 2005 IBC show, Microsoft made a public statement that its IPTV middleware was set to support the STB2000 series. Tatung's digital set-top box will support American, European and Asian TV standards. In the meantime, Tatung will utilize its plants across the globe (in Taiwan, China, Thailand, Czech and Mexico) to meet customer demand and provide prompt service.

About Sigma Designs' SMP8634 Media Processor

Sigma's SMP8634 media processor integrates a complete complement of next-generation capabilities for a single-chip system-on-chip (SOC) solution with powerful multimedia processing, robust content security system, and a full complement of peripherals. Its advanced decoder engines support video decoding of H.264 (MPEG-4 part 10), Windows Media(R) Video 9 (Microsoft's implementation of VC-1, the proposed SMPTE standard), MPEG-2 and MPEG-4 (part 2) with multiple streams, up to the equivalent of two high-definition video streams. High-performance graphics acceleration, multi-standard audio decoding, advanced display processing capabilities, and HDMI/HDCP output round out its multimedia core. Powerful content security is ensured through a dedicated secure processor, flash memory, and a range of digital rights management (DRM) engines for high-speed payload decryption. The SMP8634's 300-MIPS host CPU, 3.2 GB/second unified memory controller, Ethernet 10/100 controller, dual USB 2.0 controller, and IDE controller provide for a single-chip solution for most set-top boxes and consumer players.

About Tatung

Established in 1918, Tatung Company currently owns 43 main subsidiary companies and reached $7.5 billion USD in sales in 2004 (including invested companies). Its main products include computers, consumer electronics, home appliances, telecommunication products, wires and cables, and heavy industrial products.

Since 1997, Tatung IPTV BU has also been at the forefront of research and sales/business development of digital home solutions such as IP-based set top boxes, DMR (Digital Media Recorder), MCPC, PDP/LCD TV, etc. We are prepared to launch new products into the market in the first quarter of 2006.

About Sigma Designs, Inc.

Sigma Designs (Nasdaq: SIGM) specializes in silicon-based media processors for IPTV set-top boxes, digital media receivers, high definition DVD players, HDTV, and portable media players. The company's award-winning REALmagic(R) Video Streaming Technology is used in a variety of consumer applications providing highly integrated solutions for high-quality decoding of H.264, WMV9, MPEG-4, MPEG-2 and MPEG-1. Headquartered in Milpitas, Calif., the company also has sales offices in China, Europe, Hong Kong, Japan, Korea and Taiwan. For more information, please visit the company's web site at www.sigmadesigns.com/.

Tatung Co.
Crystal Hsu, +886-2-2598-5430

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Sigma Designs, Inc.  
Ken Lowe, 408-957-9850            

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