Baros Joins SigmaTel Licensing Program

AUSTIN, Texas--Sept. 1, 2006--SigmaTel, Inc., a leader in mixed-signal multimedia semiconductors, today announced that Baros GmbH, a Germany-based consumer electronic retailer/distributor, has agreed to join SigmaTel's global licensing program. As part of the agreement, Baros will pay royalties on portable audio devices sold that are not based on SigmaTel solutions.

"We intend to require all of our players to be SigmaTel-based in the near future," said Baros General Manager Alexander Osberger. "We respect the impressive IP portfolio SigmaTel has established and we understand how costly it would be for any MP3 manufacturer to have their shipments seized during the upcoming 2006 holiday season."

"SigmaTel's business is based on innovation and our continued success is based on our ability to protect that innovation," said Ron Edgerton, president and chief executive officer of SigmaTel. "The agreement with Baros guarantees that European consumers will continue to benefit from the market leading MP3 audio technology delivered by SigmaTel."

SigmaTel announced the expansion of the company's intellectual property (IP) licensing program in January and the European border seizure measure was implemented in July of this year. The licensing program is focused on IP used in MP3 players or in portable audio System on Chip (SoC) solutions for MP3 players and covers patents that SigmaTel has been awarded or has acquired in China, Korea, Europe and the United States.

For more information on SigmaTel, please visit www.sigmatel.com.

About Baros GmbH:

Baros GmbH is a European wide importer and distributor of innovative IT products such as MP3 player, pen drives etc. based in Germany. The major customers are large retailers.

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 digital multimedia products in the consumer electronics and computing markets, including portable compressed audio players, such as MP3 players, notebook and desktop PCs, digital video cameras, multi-function peripheral products, 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.