[Press Release] I-O DATA announces new set-top boxes for Japan’s USEN TV/internet service employ Sigma Designs’ Media Processors

Set-Top Boxes Display Free HD Content onto GyaO NEXT “TV Connected PCs”

Ishikawa, Japan. – August 11, 2008 – I-O DATA, a leading Japanese manufacturer and provider of computer peripherals and interface products, and Sigma Designs (Nasdaq: SIGM), a leader in digital media processing system-on-a-chip (SoC) solutions for consumer electronics, today announces that I-O DATA’s two updated set-top boxes, the AV-LS500L and AV-LS500UL now employ Sigma’s industry leading SMP8634LF media processors.

The set-top boxes have been designed under the name of “TV Connected PCs” exclusively for “GyaO NEXT”, Video-on-Demand (VOD) service launched in June, 2007 by the USEN CORPORATION, a Japanese domestic cable music broadcasting company. Sigma’s advanced media processors enable “TV Connected PCs” to decode both standard and high definition video and audio signals into playable formats so the viewers can enjoy “GyaO NEXT” programs on TVs with bigger screens.

Yoshihisa Hirano, GM of development department at I-O DATA said “Sigma's SMP8634LF was exactly what we had been hoping for. The decoding power and other capabilities the chip demonstrates are simply impressive, which is why Sigma has remained our first choice as a hardware vendor. I-O DATA strongly believes that the joint force between two industry-leading companies brings millions of home users superb high-def home entertainment experiences.”

“As PCs and TVs get more connected all over the world, we’re pleased I-O DATA selected Sigma media processors for the company’s new set-top boxes to deliver the leading Video-on-Demand GyaO services to potentially millions of people in Japan,” said Ken Lowe, VP of strategic marketing at Sigma Designs. “Sigma looks forward to continue providing its advanced system-on-a-chip (SoC) solutions to home entertainment connectivity platforms created in partnership with Japan’s leading VOD market players including I-O DATA and USEN CORPORATION, among others.”

“We would like to thank I-O DATA and Sigma Designs very much for their continuous cooperation and efforts for our innovative GyaO NEXT VOD service .The Japanese market for IPTV is expected to expand more and more, and we hope to keep this successful partnership with these leading companies in highly-advanced technologies and provide more innovative services in this area,” said Hitoshi Niki, CTO at USEN Corporation.

More about I-O DATA’s AV-LS500L AV-LS500UL STB Models

The AV-LS500L and AV-LS500UL run on the Microsoft Windows® Embedded CE operating system (OS) and support 280×188×34mm 170×148×29mm size images. Embedded Sigma media processors support video formats including MPEG-2TS, WMV9, VC-1, and H.264 and audio formats including MP2, MP3, WMA9, WMA9 Pro. In addition, photo formats including JPEG, GIF and BMP are fully supported. Digital Right Management (DRM) support is enabled by Sigma processors, WM-DRM10 PD, HDCP and Marlin DRM technology.

Partnership Background

I-O DATA DEVICE, INC., with technical assistance from Sigma Designs, Inc. has developed firmware and done numerous evaluations for USEN’s first generation of “TV Connected PCs” After a few years of very successful partnership, I-O DATA had eventually been selected as a full-time partner and engaged in the whole development process for the successors, the AV-LS500L and AV-LS500UL.

About I-O DATA DEVICE, Inc.
I-O DATA DEVICE, INC., is a top-tier manufacturer and provider of high-quality computer peripherals and interface products to the global consumer and OEM markets. Founded in 1976, by Mr. Akio Hosono, I-O DATA has received recognition as Japan's undisputed market leader within the PC Peripheral industry. I-O DATA is not only a manufacturer of such devices, but handles the design, development, production of the products. I-O DATA DEVICE, inc is located at 3-10, Sakurada-machi, Kanazawa, Ishikawa, 920-8512, JAPAN. For more information, please visit: www.iodata.com

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.

About USEN CORPORATION
USEN CORPORATION, a leading company in the Japanese domestic cable music broadcasting market, was established in 1964 and has been primarily engaged in offering broadcasting services, and has also expanded into the karaoke business, broadband business, and contents business. Through this process, USEN has extensively deployed entertainment services. For further information on our company, please visit: www.usen.com

Note to editors: Product photos are available at http://www.iodata.com/

USEN CORPORATION copyrights USEN, GyaO, and GyaO Plus names. I-O DATA® is a registered trademark of I-O DATA DEVICE, INC. Other brands and products are trademarks of their respective holders.

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