SigmaTel IP Licensing Program Gaining Worldwide Momentum

AUSTIN, Texas--Oct. 25, 2006--SigmaTel, Inc. (NASDAQ:SGTL), a leader in mixed-signal multimedia semiconductors, announced that it continues to gain worldwide momentum on its IP licensing strategy.

In light of its International Trade Commission (ITC) victory, SigmaTel has solicited the cooperation of large retailers to ensure that infringing Actions-based MP3 players are not sold in the U.S. Earlier this week, Coby Electronics, a U.S. electronics manufacturer, and SigmaTel entered into an agreement that will allow Coby to import its remaining inventory of Actions chips in exchange for a cash payment to SigmaTel. After its existing inventory is exhausted, Coby has agreed not to import any additional Actions-based MP3 players which are subject to the ITC exclusion order. SigmaTel is also working with U.S. Customs to enforce the ITC exclusion order.

SigmaTel has also signed three licensing agreements in Europe and China, and is in advanced negotiation stages with several others worldwide.

In addition, customs authorities in Germany and the United Kingdom have agreed to start seizing certain MP3 players that incorporate SoCs which SigmaTel believes infringe its European patents.

"We continue to gain from the ITC decision to prohibit importation of Actions-based players into the U.S.," said Ron Edgerton, president and chief executive officer for SigmaTel. "We hope manufacturers, like Coby, continue to respect SigmaTel's IP portfolio and recognize that intellectual property must be protected to promote innovation and technology progress."

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

For more information on Coby, please visit: www.cobyusa.com.

About Coby:

Coby Electronics Corporation is a manufacturer of quality consumer electronics products, which is headquartered in the heart of New York City. Since its inception in 1990, Coby has risen through the ranks of the consumer electronics industry. Coby is focused on offering innovative, feature-rich products and solutions. Within the past decade, Coby's team of inventors, engineers, and designers have earned a number of U.S. patents and design awards, with several additional patents pending. Coby will continue to establish new levels of innovation and deliver new products that validate its brand. Coby's promise has always been, "take what's possible through hard work and innovation and apply them towards delivering practical products and solutions."

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.