SigmaTel Announces Major Chinese Customer Taking a License to Its Moon-Hwang Patent

AUSTIN, Texas--Aug. 28, 2006--SigmaTel, Inc. (NASDAQ:SGTL), a leader in mixed-signal multimedia semiconductors, today announced that it and a leading Chinese electronics manufacturer entered into a patent license agreement for SigmaTel's Chinese Moon-Hwang patent. This patent license agreement calls for a substantial per unit royalty for any player that does not include a SigmaTel audio decoder chip.

"The Chinese government advocates intellectual property protection and we are delighted that a leading manufacturer signed SigmaTel's Moon-Hwang licensing agreement," said Jose Lau, senior vice president of Asia for SigmaTel. "We hope other manufacturers will respect SigmaTel's IP portfolio and recognize that intellectual property must be protected to promote innovation and technology progress."

SigmaTel's portable multimedia SoC solutions provide high-quality audio playback for portable devices such as MP3 players, language learners, and jukeboxes. The company's solutions offer market-leading benefits, including a lower bill of materials cost, Hi-Speed USB 2.0, up to 70 hours of battery life on a single AA battery, and a 14.5 square cm PCB footprint enabling incredibly small form factor products. With flexible software support and upgrade options, the SigmaTel SoC solution offers support for MP3 and WMA audio formats as well as WMA DRM security.

For more information on SigmaTel, 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 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.