MILPITAS, Calif.–(BUSINESS WIRE)–Dec. 2, 2002–Sigma Designs (Nasdaq:SIGM - News), a leader in IP video streaming solutions, today announced that NEC Corporation (Nasdaq:NIPNY - News; FTSE:6701q.1) has selected Sigma’s EM8470 MPEG decoder for incorporation into its new AX10 Home Audio/Video Server. The AX10 was introduced by NEC last month as part of its new fall line-up of consumer multimedia products for the Japan market.

NEC’s AX10 is designed to function as an entertainment server in the home, accepting terrestrial broadcast signals that can be recorded, stored on a local hard drive and played back on either televisions or PC monitors. By using a large internal hard drive, the AX10 can support lengthy time recordings without the use of videotape, as well as allowing recorded information to be checked without actually viewing the program. In addition to user initiated recording, the unit can access the electronic program guide information for designating future programs to be recorded. The AX10 currently supports recording and playback of MPEG-2 video and MPEG-1 layer 2 audio.The AX10 also contains a multitude of convenience features, which enable greater utility when connected as an A/V server to a PC:

- Playback of recorded files or setting recording parameters can be done from a remote PC
- Recorded programs can be viewed on a TV or a PC monitor
- Recorded programs can be copied to a PC for editing and VCD/DVD authoring
- Supports wireless LAN connectivity

Sigma’s EM8470, a featured hardware component in NEC’s new product-line, supports video playback on the television and is envisioned for use with a broad range of video applications. The new EM8470 series, based on the company’s award-winning REALmagic® Video Streaming Technology, is the industry’s first decoder chip to support MPEG-4 with full DVD resolution (720x576) as well as hardware DVD playback and streaming video based on ISMA or custom RTSP clients. The EM8470 provides a highly integrated solution for decoding of MPEG-1, MPEG-2, and MPEG-4 video content, Dolby® Digital, MPEG-1 Layers 1 and 2, AAC and CELP audio content, as well as complete output formatting for TV display.

“NEC is helping create a trend toward innovative consumer products that cut the line between consumer appliances and personal computers,” said Ken Lowe, vice president of business development at Sigma Designs. “Sigma is enthusiastic about working with NEC and providing our third generation MPEG decoder chips to support top quality video features for TV viewing.”

About NEC

NEC Corporation (Nasdaq:NIPNY - News; FTSE:6701q.1) is one of the world’s leading providers of Internet, broadband network and enterprise business solutions dedicated to meeting the specialized needs of its diverse and global base of customers. Ranked as one of the world’s top patent-producing companies, NEC delivers tailored solutions in the key fields of computer, networking and electron devices, through its three market-focused, in-house companies: NEC Solutions, NEC Networks and NEC Electron Devices. NEC Corporation employs more than 140,000 people worldwide and had net sales of approximately $39 billion in the fiscal year ended March 2002. For additional information, please visit the NEC home page at: http://www.nec.com/.

About Sigma Designs, Inc.

Sigma Designs specializes in silicon-based MPEG decoding for streaming video, progressive DVD playback and advanced digital set-top boxes. The company’s award-winning REALmagic® Video Streaming Technology is used in both commercial and consumer applications providing highly integrated solutions for high-quality decoding of MPEG-1, MPEG-2 and MPEG-4. 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/.

Note to Editors: REALmagic® is a registered trademark of Sigma Designs, Inc. Other product and service names mentioned herein are the trademarks of their respective owners.