Envivio and Sigma Designs Join Forces to Power AVC/H.264 IPTV Deployments

Port of Software to Decoder Chip Drives Revenue Generating Interactive Television Services

Amsterdam, The Netherlands - 9 September, 2005 – Envivio IBC Stand #1.351 – Joining forces to power AVC/H.264 IPTV deployments, Envivio Inc. and Sigma Designs (Nasdaq: SIGM) today announced the port of EnvivioTV™ player's interactive features for Sigma's new 64-bit, SMP8634, AVC/H.264 decoder chip. The Envivio® client software integrated with the Sigma chip enables set-top box manufacturers to support full featured interactive television services and for service providers to deploy new revenue generating client services using the open standard MPEG-4 format.

The SMP8634 media processor is designed for the latest Internet Protocol Television (IPTV) set-top boxes and high-definition DVD players. The SMP8634 is the most powerful H.264 "System-on-a-Chip" available on the market today and can decode up to two simultaneous HD H.264 streams.

The Envivio software enhanced SMP8634 supports multi-element MPEG-4 BIFS (Binary Format for Scenes) decoding which addresses the shortcomings of proprietary client applications or HTML middleware solutions. Advantages of the hardware and software integration include:

pixel perfect video/graphics rendering engine built into MPEG-4,
push metadata,
push GUI,
GUI is independent of the client (STB, PC, or mobile),
easily customized client interfaces,
modular services are created with MPEG-4 BIFS authoring tool,
services and functionality can be modified "in-service",
uses Telco provisioning for service definition,
and integrated Telco billing and settlement interfaces.

"We have been cooperating with Envivio on MPEG-4 decoders for the last 5 years. With the increased adoption of H.264 by telcos, combining our "System-on-a-Chip" with the Envivio software player delivers a proven combination for MPEG-4 based IPTV deployments," said Thinh Tran, Sigma Designs CEO.

EnvivioTV software allows the user to interact directly with broadcast media, experiencing MPEG-4 interactive capabilities while selecting and interacting with multimedia objects. The range of interactive programming opportunities is limited only by the author's imagination, the targeted client platform's performance, and available bandwidth. The features of the EnvivioTV player being ported enable a wide range of applications.

Video on demand: Enhancing the user's experience through DVD-like interactivity in a secured environment.
User participation in broadcast shows: Delivering an engaging user experience such as user participation in interactive game shows, documentaries, and news programs.
Synchronized interactive data broadcast with a video program: Delivering additional relevant data such as sports, news, and financial data, synchronized to the video program.

"Fully featured set-top boxes supporting AVC encoded television services allow telcos to move forward with their IPTV deployments with a standards-based solution," said Julien Signès, President of Envivio. "The port is expected to accelerate the adoption of and increase the desire for MPEG-4 deployments for digital video services."

Safe Harbor Statement
This press release may contain forward-looking statements, including statements about the projected timing and extent of customer shipments, as well as the expected use of Sigma's MPEG decoder products. Actual results could vary from those projected in the forward looking statements as a result of various factors, including worldwide economic conditions, changes in the customer's ability or desire to complete the roll-out, consumer reaction to the new products and services being offered, the ability of Sigma to deliver sufficient quantity and quality of MPEG decoder chips, prices for the Sigma chips, alternative offerings by competitors, and the ability of the parties to work together successfully to achieve the rollout.

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® 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.

About Envivio, Inc.
Envivio Inc. is the leading provider of MPEG-4 (including AVC / H.264) systems that power innovative services for revenue generating and bandwidth saving applications in the broadcast, mobile, enterprise and IPTV markets. Customers using Envivio systems can reduce their operational costs by making their existing infrastructure more efficient while offering the highest quality video services at the lowest possible bit rates. Envivio is considered the industry expert in producing and delivering MPEG-4 products and systems. More than a pioneer in the development of MPEG-4 technology, Envivio has created product families that address specific IP and video delivery requirements to enable the creation of new applications and services that were before not possible. Working with leading industry partners, the company's open standards-based technology and systems are used to deliver complete end-to-end solutions that range from mobile video services, digital television over IP, and rich media communications to high definition television.Visit www.envivio.com for more information.

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Envivio is a registered trademark of Envivio Inc. All trademarks used herein, whether recognized or not, are the properties of their respective companies.

Media Contact:

Dawn Danaher
Media Relations for Envivio, Inc.
Aries MarketMasters
+1 (714) 378-5841
pr@envivio.com