05/03 0931  ATARI AND SIGMA DESIGNS PARTNER TO DELIVER JAGUAR PC CARDS

 SAN JOSE, Calif., May 3  -- Atari Corp. (AMEX: ATC) today announced that
it has exclusively licensed Jaguar technology to Sigma Designs (NASDAQ:
SIGM) to deliver PC cards incorporating the award- winning Jaguar 64-bit
technology with Sigma's Reel-Magic(TM) full-motion video capabilities.
This deal will expand Jaguar's market reach by allowing more than 10
million users to play Jaguar software titles on their IBM-compatible
personal computers by year's end.

   "Atari will once again jump ahead of the market by bringing the world's
most advanced game technology to a new group of consumers in record time,"
said Sam Tramiel, president of Atari.  "Knowing there would be great demand
for Jaguar on personal computers -- we designed the system to talk easily
to the leading computer architectures.  This has allowed us to move quickly
to partner with Sigma Designs to make this happen before Christmas."

   "We are pleased to join Atari in its mission to expand the industry
standards for video game play," said Julien Nguyen, vice president of
engineering and chief technical officer of Sigma Designs.  "Jaguar's 64-bit
technology will be extremely attractive to the MPC customer base of more
than 10 million users.  By combining Sigma's Moving Picture Experts Group
(MPEG) technology with Atari's 3D animation, we look forward to bringing
the hottest video game technology and software titles to the desktops of
users worldwide."

   Sigma Designs, headquartered in Fremont, Calif., is a leading
manufacturer of high-performance multimedia computer products and document
imaging display solutions.  With the the release of its ReelMagic MPEG
controller in October 1993, Sigma Designs redefined affordable video
playback for the PC.  ReelMagic allows users to experience a new generation
of realistic entertainment, education, training, and business presentation
software titles with full-screen, full-motion video and CD-quality sound.
All Sigma Designs products are sold worldwide through a network of dealers,
distributors and system integrators.

   Atari Jaguar is the world's first 64-bit interactive multimedia home
entertainment system and is the only video game system manufactured in the
United States.  Jaguar, the most powerful multimedia system available, was
recently named the industry's "Best New Game System" (Video Games
Magazine), "Best New Hardware System" (Game Informer) and "1993 Technical
Achievement of the Year" (DieHard GameFan).  Jaguar also recently was given
the European Computer Trade Show Award for "Best Hardware of the Year."

   Atari Corp., based in Sunnyvale, Calif., manufactures and markets 64
- bit interactive multimedia entertainment systems, video games and
personal computers for the home, office and educational marketplaces.

   NOTE:  All trademarks are the property of their respective owners.

 CONTACT:  Lynn Thompson, 408-764-0740, or Karen Magill, 617-494-8202, both
of Cunningham Communication for Atari or Bill Rehbock of Atari, 408-745
-2000/