AUSTIN, Texas--March 10, 2006
--SigmaTel, Inc. (NASDAQ:SGTL), a leader in mixed-signal multimedia semiconductors, today announced that Techsplosion Limited, a UK-based consumer electronic retailer/distributor, has agreed to join SigmaTel's global licensing program. As part of the agreement, Techsplosion will pay royalties on portable audio devices sold that are not based on SigmaTel solutions. After a short transition period, Techsplosion will pay a 4% royalty, or four Euros for every 100 Euro player, on the sale of MP3 players that are not based on SigmaTel.
"We intend to require all of our players to be SigmaTel-based in the near future. We are pleased with the opportunity to offer our customers SigmaTel's market-leading MP3 technology," said Amar Kapoor of Techsplosion Limited. "We respect the impressive IP portfolio that SigmaTel has established and wish to honor those patents in our business via a royalty for any non-SigmaTel-based player sold in the future."
"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 CEO of SigmaTel. "The agreement with Techsplosion guarantees that consumers in Europe will continue to benefit from the best portable audio technology available in the marketplace today."
SigmaTel announced the expansion of the company's intellectual property (IP) licensing program in January 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.
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.