Sigma Designs Announces Exclusive Distribution Rights for the MPEG Version
of Tsunami Media's Flash Traffic: City of Angels

Flash Traffic is the Industry's First Techno-Thriller Interactive CD-ROM
Featuring Full-Screen, Full-Motion MPEG Video

FREMONT, Calif., July 11, 1994--Sigma Designs, Inc. (NASDAQ:SIGM), a
leading manufacturer of multimedia computer products, today announced that
it has exclusive distribution rights for the Moving Picture Experts Group
(MPEG) version of Flash Traffic: City of Angels from Tsunami Media. The
first CD-ROM interactive techno-thriller game, Flash Traffic incorporates
full-screen, full-motion, TV-quality MPEG video combined with high-quality
digital sound--delivering a realistic, interactive movie-like experience
on the PC. The MPEG version of Flash Traffic is slated for release in
August and will carry a $69.99 suggested retail price.

Under the terms of the agreement with Tsunami Media, Sigma Designs will
market the MPEG title for use with its ReelMagic MPEG playback products
for personal computers. The MPEG version of Flash Traffic will be
available through Sigma Designs' MPEG software distribution channels.

Flash Traffic is being produced "Hollywood style" on a Los Angeles-based
sound stage. Live actors play the roles of characters in the game and
background scenes are shot on location, adding a realistic dimension to
the action-packed thriller. Live action film is digitized into full-motion
MPEG video, allowing the player to interact with real-life characters and
scenes. Digitized speech is featured for all characters, including a voice
for the player. An original musical score, several licensed pop music hits
and stock footage from electronic media sources enhance the game's
blockbuster movie production values.

"Flash Traffic is an ideal MPEG software title for Sigma Designs' ReelMagic
products and we are extremely pleased to be the exclusive distributor of
the MPEG version of the game," said Greg Jones, vice president of
marketing at Sigma Designs.

"We believe hit titles like Flash Traffic, which take complete advantage of
ReelMagic's interactive, full-motion video playback capabilities, will
greatly increase the game enthusiast's demand for MPEG-based products."

Flash Traffic puts the player right in the middle of the action of a
complex case. The player assumes the role of a Los Angeles-based FBI
special agent tracking a group of international terrorists operating
within the Continental U.S. The player and a partner uncover a monstrous
plot to set off a catastrophic nuclear blast which can only be thwarted
through the interrogation of the surviving terrorists. Set in a
first-person, interrogation-like perspective, the player must use the
skill and wit of the team as well as top secret dossiers to track down and
halt the sinister international terrorists' plot. Three complete story
lines are carefully interwoven into Flash Traffic to provide branching
conversations, thus increasing the breadth of the game play and its
replayability.

"ReelMagic's full-screen, full-motion video capabilities allow the player
to interact with Flash Traffic in a completely realistic manner," said Ed
Heinbockel, president and CEO of Tsunami Media. "The MPEG version of Flash
Traffic is perfect for gamers looking for a thriller that involves
out-smarting the enemy while understanding U.S. nuclear intelligence
tactics vis-a-vis international terrorism."

Sigma Designs' family of ReelMagic MPEG playback products is shipping now.
Based on the MPEG standard for compression, ReelMagic products play back
up to 74 minutes of interactive, full-screen, full-motion video combined
with CD-quality sound from a single CD-ROM. A new generation of
entertainment and educational software titles are available or under
development using ReelMagic's MPEG technology.

Located in Oakhurst, Calif., Tsunami Media develops and publishes CD-ROM
entertainment titles for personal computers. The company's mission is to
create compelling interactive entertainment software that puts the real
world inside of computers.

Sigma Designs, headquartered in Fremont, Calif., is a leading manufacturer
of technologically advanced multimedia products, including affordable MPEG
video and audio decompression hardware. All Sigma Designs products are
sold worldwide through a network of dealers, distributors and original
equipment manufacturers.

Sigma Designs Inc
46501 Landing Parkway
Fremont, CA 94538
800-845-8086, 510-770-0100, or fax 510-770-2641

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