Philips MP3 Success In German And Chilean Market Attributed To SigmaTel Partnership

Published 10th August 2006

AUSTIN, Texas (August 10, 2006) - SigmaTel Inc (NASDAQ:SGTL), a leader in mixed-signal multimedia semiconductors, announced today that its portable media system-on-chip (SoC) solution enabled Philips MP3 players to surpass the competition and take the lead in Germany and Chile, as the number 1 player in the quantity segment market according to Philips market research. The two respective models from Philips are the SA1100 with 512MB capacity and the SA1110 with 1GB capacity, powered by the SigmaTel STMP3500 SoC family.

SigmaTel's complete multimedia SoC, firmware, and software enable companies such as Philips to develop innovative products. Through patented semiconductor solutions, firmware, and software support, SigmaTel's high level of integration allows customers to develop low cost products offering excellent audio quality.

"As a technology solutions supplier with a very strong intellectual property portfolio and proven audio quality, SigmaTel has been instrumental in enabling Philips to build our MP3 player business to the leadership position we've achieved. Our products are number 1 in both Germany and Chile, which are the most competitive countries in Europe and Latin America respectively," said Leong Yue Wing, Executive Vice President of Business Group Entertainment Solution at Philips. "Philips has surpassed the specific market leader in MP3, partnering with SigmaTel cooperation, technical support, services and flexibility."

"SigmaTel is committed to providing technology to its customers that allows them to offer portable digital audio products at competitive price points without sacrificing device functionality and audio quality. The Philips players are a perfect example of how we provide solutions that enable our customers to lead in all their multimedia product markets," said Ron Edgerton, chairman and CEO of SigmaTel. "Furthermore, we look forward to helping Philips expand its future multimedia player offerings and continue to accomplish leading market share."