Sigma Designs and Tiplay Cooperate In Interactive Entertainment

Las Vegas, NV — Sigma Designs, Inc. (Nasdaq: SIGM), a leader in digital media processing for consumer electronics, and Beijing Tiplay Networking Ltd., a member of Shanda Interactive Entertainment (Nasdaq: SNDA), a leading interactive entertainment media company in China, announced today at CES that both parties will cooperate closely to provide the world’s first interactive entertainment solutions based on peer to peer (P2P) and consumer electronics platforms. The companies will be demonstrating product prototypes to industry experts at CES 2007.

The solution is based on Sigma Designs SMP8634 media processor and Linux OS. Employing the P2P Internet connectivity technique, Tiplay creatively integrated many advanced Internet technologies such as RSS, DRM and SOAP into the platform, and further integrated these technologies into a consumer electronics product successfully. The primary application is an Internet client home appliance that will access to the website of SNDA back-end server. This will provide a total solution to the end user to experience content distribution, sharing, and education and game operations.

Based on this solution, end users can enjoy abundant audio/video sources from the Internet on their TV set and by using a remote controller. Consumer electronic manufacturers can implement this technology with their next generation media players and interactive TV products. Content and service providers can deliver their contents and services worldwide effectively and efficiently. Telecom and Broadband operators can expand the subscription to non-PC users and increase the number of their clients.

Mr. Qu Haibin, Senior Vice President of Shanda and President of Tiplay said, “Through the cooperation with Sigma Designs, we have achieved a breakthrough in the interactive entertainment field based on consumer electronics. This commercial product is expected to be launched into the market in Q2 2007. We believe this technology is the first to market which will gain full acceptance by end users in the interactive internet entertainment field.”

Mr. Ken Lowe, Vice President of Strategic Marketing for Sigma Designs, said, “The world’s interactive Internet entertainment market has huge potential and is developing very fast. We are pleased to cooperate with Tiplay and integrate their technology into a complete solution.”

The two companies agree to cooperate closely to work toward the goal of launching the commercial product into the market in the first half of 2007.