SigmaTel Selects SPIRIT's High-Performance Audio Software for Portable Media Player ARM Technology-Based SoCs

MOSCOW--June 15, 2006--SPIRIT DSP (www.spiritDSP.com), the world's leading provider of embedded voice & communication software products, announced today that SigmaTel Inc. (NASDAQ:SGTL), (www.sigmatel.com), a leader in mixed-signal multimedia semiconductors, has benefited from SPIRIT's proprietary MP3 codec optimized for ARM(R) processors.

"SigmaTel engaged with SPIRIT in pursuit of high performance codec technology for SigmaTel's portable digital audio device offerings," said Tom Zudock, Vice President of Technical Staff, Audio Decoder Software of SigmaTel. "There is an optimal combination of ARM processor architecture and SPIRIT software that reduces system resource load, while maintaining high audio quality. These qualities are a key component of SigmaTel's ability to offer a superior solution to our customers."

SPIRIT's MP3 codec fine-tuned for the ARM9E(TM) processor family was successfully integrated into SigmaTel STMP36XX SoC (System on Chip). SPIRIT's MP3 codec is proven to show the highest performance on ARM platforms (peak resource consumption is less then 10 MIPS). This feature has made it possible to achieve less than 45 mW total system power consumption while playing 128 Kbps MP3 on the chip, providing significantly longer battery life for the end-users.

"ARM is at the heart of this Digital Music Player revolution providing the 32-bit RISC processors that power both the user experience and the multimedia playback," said Rob Coombs, Director of Mobile Solutions at ARM. "The high-quality software solutions that companies like SPIRIT are developing, highlight how compelling the ARM platform is for portable media player applications."

SigmaTel is the largest supplier of MP3 players and audio chips to the consumer electronics market. Its Portable Multimedia SoC is currently #1 in flash-based solution in MP3 player segment. More than 300 player designs contain SigmaTel solutions. Apart from remarkable sound quality, SPIRIT's MP3 codec provides extremely high robustness to damaged MP3 bit streams and very low MIPS and memory requirements. As a result, the end-user will hear and feel dramatically clear and high-quality noise-free audio while listening to voice data or music on a portable device. SigmaTel Portable SoC solutions empower device manufacturers and designers to create portable multimedia products that go beyond today's ordinary MP3 players. SigmaTel SoCs can be found within the newest MP3 players made by Creative, Disney, Lenovo, Memorex, Oakley, Philips, Samsung, Thomson, and many others.

"Next generation SoC developed by SigmaTel turns out to be an excellent solution for all modern mobile devices like digital audio players, PDAs, portable video players, and many others", said Andrew Sviridenko, CEO and Founder of SPIRIT DSP. "We are glad to have made a valuable contribution to SigmaTel's world-known products. As for us, SPIRIT will continue to extend its reputed portfolio of solutions tuned for ARM platforms. SPIRIT already offers advanced low-resource 3GVideo Telephony and Multimedia software for the modern ARM processors".

About SPIRIT

SPIRIT DSP (www.spiritDSP.com/voip) employs 120 professionals, has been in international software licensing business since 1992. SPIRIT is a bootstrap and has been profitable for 14 years. SPIRIT focus is communication, speech and VoIP software products and today SPIRIT counts among its clients Adobe, Agere, Atmel, Flextronics, Ericsson, HP, HTC, Kyocera, LG, Marconi, MediaRing, NEC, Nortel Networks, Oracle, Paltalk, Panasonic, Philips, Polycom, Samsung, Siemens, Texas Instruments and Toshiba, among 200+ other communication OEMs and software vendors. Through the brand names SPIRIT communication software is used in over 70 countries and powers 80 million voice channels. SPIRIT DSP is a member of multiple voice-related developer communities, including Intel(R) Developer Network, ARM(R) Connected Community, Philips Nexperia Partners Program, TI Third Party Network, TI OMAP Developer Network for Wireless handsets and PDAs. In 2005, SPIRIT DSP has been honored as one of the 'Fierce 15' top VoIP companies, and one of the 'Pulver 100' growth companies that represent the future of IP communications. SeeStorm is SPIRIT subsidiary for synthetic video conferencing.

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.