Sigma Designs Completes Acquisition of Gennum’s VXP® Image Processing Business

MILPITAS, Calif.--(BUSINESS WIRE)--Sigma Designs (Nasdaq:SIGM) announced today that it has completed the previously announced acquisition of the VXP® Image Processing business from Gennum Corporation (TSX:GND). The addition of the VXP group’s industry leading video processing product-line further extends Sigma’s world leadership in digital media processor SoCs for consumer electronics.

Sigma will acquire assets of the VXP group including, but not limited to, products and intellectual property. Approximately 46 employees will be joining Sigma Designs as part of the purchase. Sigma has made a cash payment of approximately $18 million for the acquisition and assumed specified liabilities.

Sigma Designs and Gennum reached a definitive agreement for the sale on January 2, 2008.

Safe Harbor Statement

This press release may contain 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 benefits of the proposed acquisition of the Gennum VXP Group and retention of employees. Actual results could vary from those projected in the forward looking statements as a result of various factors, including the ability to effectively integrate an acquired business and technologies, worldwide economic conditions, consumer reaction to the new products and services being offered, alternative offerings by competitors, and the ability of the parties to work together successfully to achieve the anticipated benefits of the proposed acquisition. Other risk factors are detailed from time to time in our SEC reports, including our quarterly report on Form 10-Q as filed December 13, 2007. 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.

About Sigma Designs, Inc. Sigma Designs is a leading fabless provider of highly integrated system-on-chip, or SoC, solutions that are used to deliver multimedia entertainment throughout the home. Sigma’s SoC solutions combine its semiconductors and software and are a critical component of multiple high-growth, consumer applications that process digital video and audio content, including internet protocol TV, or IPTV, high definition DVD players, high definition TVs, or HDTVs and portable media players. Headquartered in Milpitas, Calif., Sigma Designs also has sales representatives in the United States, Belgium, China, Japan and Taiwan and sells its products through a third-party distributor in Korea. For more information, please visit Sigma Designs’ web site at www.sigmadesigns.com.