SigmaTel Sells Over 30 Million MP3 Chips Since 2002

    Business Editors/Technology Editors

    AUSTIN, Texas--(BUSINESS WIRE)--Jan. 25, 2005--SigmaTel Inc. (NASDAQ:SGTL), the worldwide market leader for MP3 audio controller chips within portable MP3 players, announces that it has sold over 30 million MP3 controller chips since the first product was introduced in 2002. For 2004, unit sales reached over 22.5 million with over 10 million sold in the fourth quarter alone.
    Market research group iSuppli Corporation is forecasting ramping numbers that show the total worldwide portable digital audio market being three times the size by 2008. From a December 2004 study, iSuppli estimates the market at 36 million units in 2004 growing to 115.2 million units by 2008.
    "Our research shows that this market is projected to grow exponentially over the next several years," says Shyam Nagrani, principal analyst for consumer electronics at iSuppli Corporation. "SigmaTel is definitely a company to watch in the portable digital audio space."
    SigmaTel's portable SoC products integrate almost all digital audio functionality needed for a portable audio player onto one piece of silicon. This integration also allows for the smallest and most unique MP3 player designs, including sunglasses, wristwatches and pendants. Players using the SigmaTel solution also benefit from patented power-management technologies that can enable up to 50 hours of battery life from a single AA battery.
    "SigmaTel has been diligently pushing the technology envelope as to how far the portable audio market can go," said Ron Edgerton, president and CEO of SigmaTel. "To reach the 30 million unit point after just three years is an acknowledgment of the company's dedication and vision. SigmaTel is committed to listen to our customers' needs, both from a technical design and a market perspective position, enabling us as a company to focus and direct our resources and activities in a way that nourishes our place in this market."
    For more information on SigmaTel solutions, please visit www.sigmatel.com.

    About SigmaTel:

    SigmaTel Inc., a fabless semiconductor company headquartered in Austin, Texas, designs, develops, and markets proprietary, analog intensive, mixed-signal ICs for a variety of products in the consumer electronics and computing markets, including portable compressed audio players, such as MP3 players, notebook and desktop PCs, DVD players, digital televisions, and set-top boxes. SigmaTel provides complete, system-level solutions that include highly integrated ICs, customizable firmware and software, software development tools, reference designs, and applications support. The Company's focus is on providing system-level solutions that enable customers to rapidly introduce and offer electronic products that are small, light-weight, power-efficient, reliable, and cost-effective. SigmaTel is ISO 9001:2000 certified and is committed to providing customers with high performance, quality products along with superior customer service.

    Cautionary Language: This press release contains forward-looking statements based on current SigmaTel expectations. The words "expect," "will," "should," "would," "anticipate," "project," "outlook," "believe," "intend," and similar phrases as they relate to SigmaTel or future events are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of SigmaTel, but are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. A number of important factors could cause actual results to differ materially from those in the forward-looking statements, and there will be events in the future that SigmaTel is not able to accurately predict or control. For a discussion of these and other factors that could impact SigmaTel's financial results and cause actual results to differ materially from those in the forward-looking statements, please refer to recent SigmaTel filings with the SEC, particularly the 424(b)(4) final prospectuses filed September 19, 2003 and February 19, 2004, the Form 10-Qs that were filed on October 29, 2003, April 20, 2004, July 20, 2004 and October 19, 2004, the Form 10-K that was filed on February 17, 2004, and the Form 10-K that SigmaTel anticipates filing during February of 2005 covering the annual period ended December 31, 2004.

    SigmaTel is a registered trademark of SigmaTel. All other products and brand names as they appear in this release are trademarks or registered trademarks of their respective holders. All specifications may be changed without notice.

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CONTACT: SigmaTel Inc., Austin Nate Long, 512-381-3913 nlong@sigmatel.com

KEYWORD: TEXAS INTERNATIONAL ASIA PACIFIC Technology_IT INDUSTRY KEYWORD: HARDWARE COMPUTERS/ELECTRONICS TELECOMMUNICATIONS SOFTWARE NETWORKING PRODUCT SOURCE: SigmaTel Inc.

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