Hollywood Comes to the PC with ReelMagic Lite

Sigma Designs Bundles Crystal Dynamics' The Horde with its ReelMagic Lite
MPEG Playback Board

FREMONT, Calif., April 4, 1994 -- Sigma Designs, Inc. (NASDAQ--SIGM), a
leading manufacturer of multimedia computer products, today announced that
its ReelMagic Lite MPEG multimedia playback controller for the PC is now
shipping with The Horde, a fast-paced action/strategy game from Crystal
Dynamics. Starring Kirk Cameron of ABC's Growing Pains and other
well-known Hollywood actors, The Horde sizzles with 35 minutes of
full-motion video sequences compressed in the MPEG format. ReelMagic Lite
plays back those sequences at full-screen, full-motion video combined with
CD-quality sound. The ReelMagic Lite board bundled with The Horde carries
a suggested retail price of just $349, and is slated to hit retail shelves
by mid-April. The Horde also will be available immediately through Sigma
Designs' MPEG Software Catalog.

The Horde, set in a magical and humorous medieval fantasy world, features
Kirk Cameron as Chauncey, the hero, who must defend his villages against
the vile, bumbling and amusing creatures who make up the Horde. Players
assume the role of the chivalrous Chauncey, defending villagers against
the eight species of Hordlings. Originally designed for IBM PC CD-ROM, IBM
PC floppy and 3DO Interactive Multiplayer systems, the new ReelMagic MPEG
version of The Horde brings out the true Hollywood character of the game's
original design.

"Sigma Designs is extremely excited to be working with Crystal Dynamics to
offer an MPEG version of the new hit title The Horde," said Thinh Tran,
chairman and CEO of Sigma Designs. "The ReelMagic Lite/The Horde package
represents a major leap forward for the PC industry -- the merging of
computers, games and Hollywood into an interactive entertainment
business."

"It was a natural fit," said Rob Dyer, vice president of international
operations at Crystal Dynamics. "Sigma's ReelMagic Lite gave Crystal the
chance to show The Horde at its full potential. We're extremely pleased
with the results and are sure users will be as well."

The Horde is a collaboration between Toys for Bob and Crystal Dynamics. The
live action sequences were shot under the direction of Robert Weaver, a
leading interactive game and motion picture director, and produced by
two-time Emmy Award-winner Mackenzie Waggaman and Weaver. Other actors
featured in the game include Michael Gregory as The Evil High Chancellor,
previously seen in Total Recall, ROBOCOP, and The Lawnmower Man; Michael
McCarty as The Good King Winthrop, known for his work on Broadway and in
prime-time television dramas; and voice-over veteran Henry Crowell Jr. as
the Newscaster, Herald, Peasant and Narrator.

ReelMagic Lite, the most recent addition to Sigma Designs' family of
ReelMagic products, is an ideal companion for users who already own a PC
sound card, providing complete MPEG video and audio playback. Also part of
the ReelMagic line are the ReelMagic controller (SRP $449) and the
ReelMagic CD-ROM Upgrade Kit (SRP $799). Based on the MPEG (Moving Picture
Experts Group) standard for video and audio compression, ReelMagic
products decompress software content in realtime and play back 30 frames
per second video and 16-bit stereo audio from a standard CD-ROM drive.

A wide range of ReelMagic-compatible entertainment, education, training and
business presentation applications are currently available or in
development. Leading software developers such as Activision, Aris
Entertainment, Compton's New Media, Interplay, Sierra Online, Software
Toolworks, ReadySoft, and Virgin Games are supporting the ReelMagic
platform. In addition, ReelMagic is compatible with the Video CD format,
enabling full-feature films on CD-ROM to be played on a personal
computer.

Palo Alto, Calif.-based Crystal Dynamics was founded in June 1992 by former
Sega executives Judith Lange and Madeline Canepa, and Dave Morse, former
president of New Technologies Group and Amiga Computers. The company's
president and CEO is Strauss Zelnick, formerly president and CEO of
Twentieth Century Fox. A hardware independent producer of software titles,
Crystal Dynamics provides titles for Sega, 3DO and IBM platforms. Crystal
Dynamics' first title, "Crash 'N Burn," is bundled with Panasonic's REAL
3DO Interactive Multiplayer system. Its second original title, "Total
Eclipse", was released in December 1993 for the 3DO platform.

Sigma Designs, headquartered in Fremont, CA, is a leading manufacturer of
technologically advanced multimedia products, including affordable MPEG
video and audio decompression hardware. All Sigma products are sold
worldwide through a network of dealers, distributors and original
equipment manufacturers. For sales and developer information, call
800-845-8086, 510-770-0100.

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

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