SigmaTel and Matsunichi Forge Strategic Partnership

    Business Editors/High-Tech Writers

    AUSTIN, Texas--(BUSINESS WIRE)--Feb. 3, 2005--SigmaTel, Inc. (NASDAQ:SGTL) and Matsunichi Communication Holdings Limited ("The Group", SEHK: 0283), have agreed to a strategic partnership resulting in the exclusive use of SigmaTel MP3 audio technology within Matsunichi 2005 flash and hard disk portable audio player models.
    As a leading brand name in Hong Kong and the PRC market place and with a push into many additional demographic areas, Matsunichi portable digital audio products are well positioned to gain a broad and legitimate market share. Through this arrangement with SigmaTel, Matsunichi 2005 portable audio player models will now be driven by SigmaTel technology. SigmaTel, as the market leader in MP3 audio technologies throughout the world, brings several significant advantages to Matsunichi's offerings. These include longer battery life, extreme integration for unique form factors, high audio quality, and design development support that allows for easy implementations and quick time to market.
    The partnership between Matsunichi and SigmaTel also includes an agreement of total support regarding joint promotions and branding between the two companies, including packaging and advertising.
    "The relationship between Matsunichi and SigmaTel has grown stronger as the MP3 player market has continued to grow," said Mr. Ron Edgerton, president and CEO of SigmaTel. "With this agreement now in place, we will be able to reach out to the vast consumer audiences in the Asia-Pacific region and beyond through one of the most well positioned consumer electronics companies in the area."
    "Within the technical side of the portable digital audio world, SigmaTel is unmatched as far as features and support and quality," says Mr. Su Tong Pan, Chairman of Matsunichi Communication. "With this exclusive agreement, our customers can expect the same great quality products that Matsunichi is known for."
    For more information on SigmaTel solutions, please visit www.sigmatel.com.
    For additional information on Matsunichi, please click into www.matsunichi.com.hk.

    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 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.

    About Matsunichi Communication Holdings Limited:

    Founded in 1993 in Hong Kong, the Matsunichi Group originally produced conventional household electronic products. In 2002, Mr. Su Tong Pan, Chairman of the Group, acquired a Hong Kong listed company and renamed it Matsunichi Communication Holdings Limited ("Matsunichi"; stock: 0283). Since then, the Group has engaged in the manufacturing and trading of digital consumer electronic products which includes MP3 players, USB storage devices and LCD TV.
    Matsunichi sells a range of products under its own brand name "Matsunichi", and achieves successful brand recognition through effective advertising and marketing campaigns. Matsunichi also engages in ODM/OEM businesses with most of its products sold overseas through its extensive global sales network.
    Headquartered in Hong Kong, Matsunichi has five regional offices in China, Taiwan, Singapore, Germany and the U.S. It owns two manufacturing plants in Shenzhen and Dalian, and two R&D centers in Shenzhen and Taipei.
    For more information about the Company and its products, please visit http://www.matsunichi.com.hk.

    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 or Matsunichi Hi-Tech Limited, Hong Kong Andrea Chan, 852-2100-0886 andreachan@matsunichi.com.hk

KEYWORD: TEXAS HONG KONG CHINA SINGAPORE GERMANY INTERNATIONAL ASIA PACIFIC EUROPE Technology_IT INDUSTRY KEYWORD: NETWORKING HARDWARE SOFTWARE COMPUTERS/ELECTRONICS PRODUCT MARKETING AGREEMENTS SOURCE: SigmaTel, Inc.

Copyright Business Wire 2005