SGTL Sigmatel (MM)

SigmaTel, Inc. (NASDAQ:SGTL), today announced it has reached a settlement with Actions Semiconductor relating to the parties� ongoing patent disputes. Under the terms of the settlement, the parties will dismiss all litigation that is pending against one another. In addition, the parties entered into a three year patent cross license agreement as part of the settlement. The financial terms of this settlement are confidential. �SigmaTel decided that it is in the Company�s best interest to compete with Actions in the marketplace rather than in a court room,� said Phil Pompa, SigmaTel�s Chief Executive Officer. �The ITC exclusion order has served its purpose and we have concluded that it no longer makes sense for SigmaTel to continue paying legal fees in order to keep the order in place. There are several companies now competing in the portion of the market affected by the exclusion order and this market is not central to SigmaTel�s strategy going forward. SigmaTel will continue to be vigilant about protecting its intellectual property.� About SigmaTel: SigmaTel is a fabless semiconductor company which designs, develops, and markets mixed-signal ICs for the consumer electronics market. The Company's target market segments include portable media players, printers and digital televisions. SigmaTel provides complete, system-level solutions that include highly-integrated ICs, customizable firmware and software, software development tools and reference designs. The Company's focus is on enabling 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, worldwide customer service. Cautionary Language: This press release contains forward-looking statements based on current SigmaTel expectations. The words "expect," "will," "should," "would," "anticipate," "project," "outlook," "believe," "intend," and similar phrases as they relate to SigmaTel or future events are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of SigmaTel, but are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. A number of important factors could cause actual results to differ materially from those in the forward-looking statements, and there will be events in the future that SigmaTel is not able to accurately predict or control. For a more detailed discussion of factors that could impact SigmaTel's financial results and cause actual results to differ materially from those in the forward-looking statements, please refer to recent SigmaTel filings with the SEC, particularly the Form 10-K that was filed on March 16, 2007, and the Form 10-Q that was filed on May 10, 2007.