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The first product of its kind, AutoPC 320DV incorporates Sigma's REALmagic® EM8400 DVD playback silicon designed into the product's DVD-Video subsystem.

Showcased at CES in Las Vegas January 6-9, Clarion's second-generation AutoPC 320DV offers hands-free, voice-activated control of in-car entertainment, computing, GPS satellite navigation, and vehicle diagnostics, as well as hands-free telephony for the driver. To provide rear-seat passengers with theater-quality video and audio, the company designed Sigma's REALmagic EM8400 decoder into the AutoPC DVD-Video playback and viewing subsystem.

``The response to our second-generation AutoPC was overwhelming,'' said James Minarik, president and CEO of Clarion Corp. of America. ``The DVD playback feature made a tremendous impression during CES, and we're delighted to receive such high praise from our peers in the industry.''

``Clarion's Innovations 2000 Award clearly shows that it has an edge in the automotive accessory, communications, and entertainment market,'' said William K. Wong, Sigma's vice president of marketing. ``We're excited to be part of such a successful and innovative new product launch.''

DVD-Video, the fastest-growing new packaged media format launch in history, was also named the ``Medium of the Millennium'' by industry executives during CES. According to the DVD Entertainment Group, almost 50 million DVD movies and music videos shipped to retailers in the fourth quarter of last year--a 400 percent increase over the same period in 1998.

About Clarion

Clarion Corporation of America, with U.S. headquarters in Gardena, Calif., has been an international leader in car audio and electronics since 1940. The company conducts research, development, engineering, design, and manufacturing of entertainment, communication, security, computing, and navigation systems products. The company has more than 14,000 employees worldwide and 24 factories in 10 countries, with marketing and sales affiliates in Europe, North and South America, Asia, and Australia.

Clarion is the developer and manufacturer of the revolutionary Clarion AutoPC, which is the first product to integrate car audio, computing functions, navigation, and wireless communications through hands-free voice activation within the dash of an automobile. Information on the Clarion AutoPC can be found at www.autopc.com.

About Sigma Designs

Sigma Designs is an acknowledged leader in the fast-growing digital video market. Sigma specializes in digital video encoding/decoding for the PC DVD market, for video streaming over corporate Intranets and extranets, and for the emerging set-top box/information appliance market.

Sigma is a driving force in advancement of digital video technology used in high-speed, high-bandwidth transmission for business, home, and education markets. Sigma Designs' products, marketed under the REALmagic trade name, are sold worldwide through a direct sales force, distributors, and original equipment manufacturers (OEMs). For additional information, visit the Company's web site at http://www.sigmadesigns.com.

Editors and Analysts: For further information, photographs, and interviews, please contact Andy Marken, marken@cerf.net or 408/986-0100.

Note to Editors: REALmagic and Sigma Designs are registered trademarks of Sigma Designs. All other products and companies referred to herein are trademarks or registered trademarks of their respective companies.

Contact:

     Sigma Designs, Inc.
     Carol Kaplan, 408/957-9891 (Investors)
     carol_kaplan@sdesigns.com
              or
     Marken Communications, Inc.
     Andy Marken, 408/986-0100 (Media)
     marken@cerf.net