Great News

CopperGate Demonstrates New HomePlug AV and HomePNA Chipsets at CES

Demonstrates delivery of digital broadcast content over every wire inside the home, including coax, phone lines and powerline

Milipitas, CA - January 5, 2010

CopperGate, a wholly-owned subsidiary of Sigma Designs (Nasdaq: SIGM), a leading provider of system-on-chip (SoC) solutions used to deliver entertainment and control throughout the home and the first semiconductor company to support multiple home networking standards (HomePNA for coax and phoneline, and HomePlug AV for powerline), announced it will demonstrate its HomePNA and HomePlug AV solutions at the Consumer Electronics Show (CES), January 7 - 10, 2010 in Las Vegas, Nevada.

Members of the press and analyst community are invited to visit the Sigma Designs meeting room 36153 South Hall 4, where CopperGate will demonstrate for the first time its ultra-green HomePlug AV CG2110 Chipset, announced last October. The chipset offers service providers and CPE equipment manufacturers a cost-effective, reliable, and easy way to distribute demanding video, audio, data, and voice, such as triple-play services and IPTV, over powerlines throughout a home. At CES, CopperGate will be demonstrating the HomePlug AV CG2110 Chipset's superior features versus existing solutions.

The company will also showcase its market-leading HomePNA Chipset HomePNA chipsets, which enable service providers to deliver IPTV and broadband access to MDU more affordably.

Executive Quotes:

Gabi Hilevitz, CEO CopperGate

"The HomePNA standard continues to provide the highest performance and lowest costs for delivering in-home networking and broadband access, helping service providers reduce IPTV installation costs by over $300 million to date."

"HomePNA is an excellent broadband-access technology for emerging markets. It eliminates costly upgrades and enables small to medium-sized MSOs to deliver triple-play services using the existing cable coax infrastructure by adding two-way broadband distribution with minimal investment."

"CopperGate can deliver digital broadcast content over every wire inside the home, including coax, phone lines and powerline. The HomePlug AV CG2110 chipset we're showing at CES will demonstrate our ability to outperform other competing solutions."

Highlights / Key Facts:

• Telcos that have deployed HomePNA have received higher fixed line retention, higher ARPU, and greater customer satisfaction. To date, the addition of Sigma-enabled IPTV has generated more than $1 billion in new revenues for service providers.
• When telcos want to get into IPTV and triple play, the technology they turn to most is HomePNA, the ITU-T based standard G.9954. Four out of the top five largest carriers in North America deploying IPTV have selected HomePNA.
• In a recent report, HomePNA 3.1 was ranked the most widely deployed IPTV solution amongst service providers worldwide.
• Sigma's HomePlug AV CG2110 Chipset is optimized to stream high and standard definition TV (HDTV and SDTV), VoIP, and other applications that are highly time-sensitive and require low latency.
• This HomePlug AV CG2110 Chipset offers the simple plug-and-play installation of a complete in-home network, eliminating technical support costs and reducing installation times compared to installing Cat-5.
• The HomePlug AV CG2110 Chipset consumes as little as half the power of rival solutions and fully complies with energy efficiency standards such as the European Commission's Code of Conduct on Energy Consumption of Broadband Equipment.
• CopperGate, a wholly-owned subsidiary of Sigma Designs, is the only company whose standards-based chipsets enable carrier-class distribution of broadband digital content over all three types of existing wires in the home: coax, phone, and power. The company sells its technology to OEMs who build solutions for multimedia home networking and multi-dwelling unit (MDU) broadband access markets. CopperGate's chips are used in set-top boxes, residential gateways, optical network terminators and Ethernet bridges. CopperGate is headquartered in Tel Aviv, Israel with offices in the United States, Taiwan, Korea, China, Japan, and Brazil. Please visit: www.copper-gate.com.

Links / Urls to learn more:

HomePNA

HomePlug AV - IPTV Delivery Over Powerlines

About Sigma:

Sigma Designs is a leading fabless semiconductor provider of highly integrated system-on-chip (SoC) solutions that are used to deliver entertainment and control throughout the home. SoC solutions include media processing, wired and wireless networking, video image processing, and home control along with system software to form the critical components of consumer electronic products that include Internet protocol TV (IPTV) set-top boxes, Blu-ray players, high definition televisions (HDTV), and media communication devices. Headquartered in Milpitas, Calif., Sigma Designs has direct sales representatives in the United States, Brazil, China, Europe (Denmark), Israel, Japan, Taiwan and a third-party distributor in Korea. For more information, please visit Sigma Designs' web site at www.sigmadesigns.com

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements about the anticipated features and benefits of Sigma's products, growing demand from consumers, projected timing and availability of solutions, and the expected use of Sigma's products. Actual results could vary materially from those projected in any forward-looking statements included herein as a result of various factors, including, but not limited to, worldwide economic conditions, the rate of growth of the market, changes in the customer's ability or desire to incorporate Sigma's chipsets and software into its product, consumer reaction to the new products and services being offered, the ability of Sigma to deliver sufficient quantity and quality of its chipsets, alternative offerings by competitors, and the ability of the parties to work together successfully to achieve the rollout of this new product. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Sigma undertakes no obligation to publicly release or otherwise disclose the result of any revision to these forward-looking statements that may be made as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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