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Sigma Designs Bundles Sonic DVD Publishing Application With New MPEG-2/DVD Encoder-Decoder Hardware

REALmagic DVR enables Windows NT users to capture, edit, author and publish video on DVD as well as play DVD-Video content.

``We selected DVDit! LE to bundle with REALmagic DVR because of its ease-of-use, extensive feature set and its power to turn DVR's high-quality MPEG-2 video into DVDs that can play back on any set-top DVD player or DVD-equipped PC,'' said Marshall Goldberg, director of Marketing at Sigma Designs. ``Our collaboration with Sonic Solutions allows us to deliver a complete DVD publishing system for under $1,000.''

To create a DVD title, video is captured and compressed into MPEG-2 using REALmagic DVR. Users then drag-and-drop their compressed video and audio clips, graphics, backgrounds and buttons into DVDit! LE to build an interactive DVD. With a single mouse click, all video and audio content is converted into DVD-Video format and written to DVD-R, CD-R using the new cDVD format, DVD-RAM or hard disk.

``We are extremely pleased that Sigma Designs has chosen DVDit! LE as the DVD authoring component of their complete DVD production system,'' said Mark Ely, director of Product Marketing at Sonic Solutions. ``With REALmagic DVR, Sigma Designs again reinforces their position as an acknowledged leader in innovative video solutions for video and DVD enthusiasts.''

REALmagic DVR is currently available and sold through OEMs and system integrators. When combined with a DVD-RAM drive, it adds powerful and inexpensive DVD-Video production and high quality digital video archival capabilities to standard Windows NT. The suggested retail price for the REALmagic DVR is $999 U.S.

About REALmagic DVR

REALmagic DVR is a low-cost encoder and decoder card for creating and playing DVD titles, and is based on an MPEG-2 encoder and Sigma's award-winning MPEG-2 decoder technology. With REALmagic DVR, users can record DVD-quality video from any video source and then edit, author and archive their DVD-quality video content on their PC. Recorded DVD video can be stored on CD-R, DVD-R or PC hard disk drives for corporate use or for consumer applications at home.

REALmagic DVR is an innovative approach to bringing DVD publishing to a broader base of video enthusiasts. It can be used to create DVD titles for applications ranging from feature film releases to corporate and industrial titles to home videos. Its use of MPEG-2 makes it possible to convert video tape into an industry standard digital video format with virtually no loss of quality, which can be archived onto hard disks, DVD-RAM, CD-R or other media.

About Sonic DVDit!

Sonic DVDit! is the easiest way to publish on DVD. Combining a simple and straightforward user interface with Sonic's award-winning DVD multiplexing technology, DVDit! gives video professionals, graphic designers, artists and video enthusiasts the power to create stunning interactive DVD content on their PC.

DVDit! is compatible with AVI video files, allowing users to incorporate virtually any video content -- from DV to D1 -- into DVDit! projects.

With a simple drag-and-drop interface, building DVD titles is as easy as selecting a menu background and then dragging and dropping an AVI file. DVDit! automatically builds buttons and interactivity, multiplexes and formats content and writes it to CD-R or DVD-R for playback in consumer set-top DVD players or DVD-equipped PCs. DVDit! can create interactive titles in DVD-Video, DVD-ROM, cDVD and Streaming DVD formats.

Sonic DVDit! SE has a suggested U.S. list price of $499 and is available for purchase from the DVDit! web site at store.dvdit.com. DVDit! LE users can upgrade to DVDit! SE for $299.

About Sigma Designs (Nasdaq:SIGM - news)

Sigma Designs is an acknowledged leader in the fast-growing multimedia market. Sigma entered the multimedia market in 1993 with products based on the MPEG (Moving Picture Experts Group) standard for compressing and decompressing digital audio and video signals. Sigma is a driving force in advancement of the MPEG technology used in most multimedia products on the market today.

Sigma Designs' products, marketed under the REALmagic trade name, include affordable MPEG/DVD video and audio decoding hardware used in consumer and commercial PC-based applications. Sigma products are sold worldwide through a direct sales force, distributors, and original equipment manufacturers (OEMs). For more information, visit the Company's web site at http://www.sigmadesigns.com.

About Sonic Solutions (Nasdaq:SNIC - news)

Based in Marin County, Calif., Sonic Solutions designs and manufactures DVD publishing and audio editing systems used by video, audio and multimedia professionals around the world.

Sonic's product lines include DVD Creator, the leading system for professional DVD production; DVD Fusion, the first DVD publishing system designed for non-linear video editors; DVDit! (http://store.dvdit.com/), the easiest way to publish on DVD and the first DVD publishing application for consumers; and SonicStudio HD, the leading digital audio workstation to prepare recorded sound for release on DVD and CD.

Sonic is a leader in advancing DVD-Video and DVD-Audio technology and is a full voting-member of the DVD Forum, the standards-setting body for the DVD format. Sonic Solutions can be contacted on the web at http://www.sonic.com/.

The above paragraphs of this press release contain forward looking statements that are based upon current expectations. Actual results could differ materially from those projected in the forward looking statements as a result of various risks and uncertainties including, among others, the timely introduction and acceptance of new products, costs associated with new product introductions, the transition of products to new hardware configurations and platforms and other factors, including those discussed in the Company's annual and quarterly reports on file with the Securities and Exchange Commission. This press release should be read in conjunction with the Company's most recent annual report on Form 10-K and quarterly report on Form 10-Q on file with the Securities and Exchange Commission, which contain a more detailed discussion of the Company's business including risks and uncertainties that may affect future results.

Note to Editors: 2000 Sonic, Sonic Solutions, the Sonic logo, cDVD, eDVD, hDVD, DVDit!, sDVD and Streaming DVD are trademarks of Sonic Solutions. All other company or product names are trademarks of their respective owners. Specifications, pricing and delivery schedules are subject to change without notice.

Contact:

     Sonic Solutions
     Paul Lefebvre, 415/893-8000
     paul_lefebvre@sonic.com