Sigma's MPEG boards used in automatic teller machines. Hope it doesn't compress your cash. If it does, you'll feel Korean..........................
EDS Launches Innovative ATMs Enabled With
REALmagic Boards From Sigma Designs; EDS Uses
REALmagic MPEG Playback Card to Add Multimedia to
ATMs
FREMONT, Calif.--(BUSINESS WIRE)--Dec. 15, 1997--Sigma Designs Inc.
(NASDAQ:SIGM), a recognized leader in digital video solutions for commercial applications, today
announced that EDS has launched a pilot program featuring video advertising on automated teller
machines (ATMs) from Diebold Inc., bringing consumer messages to the corner of Main Street.
The pilot project, operating on 165 ATMs located in 7-Eleven stores throughout the San Diego
metropolitan area, uses high-quality, full-motion video from Sigma Designs -- an enhanced capability
never seen before on an ATM screen. Launched in November, the pilot program features two
movie advertisements from Fox Searchlight Pictures -- The Ice Storm and The Full Monty. Nissan
Motor Corp. will also feature spots for a variety of its products, tying them to local Nissan dealers.
The pilot, which will run through March 1998, will be closely evaluated to gauge consumer and
advertiser acceptance.
The video clips will run only during "please wait" screen sequences and will not interfere with normal
transaction timing. Advertisements will run for approximately 15 seconds and will be tied to products
and services available both at the point-of-sale and outside the store. Target marketing capabilities
will also be available.
Future enhancements include ATM coupons directed at in-store specials and direct-marketing
efforts aimed at the specific cardholder. The ATMs will provide customers with the option for
specific coupons-on-demand and the ability to tie into community, regional, and national advertising
spots.
"This program is an example of how EDS manages innovation, technology, and complexity to
provide enhanced services to our clients moving into the Information Age," stated Paul Rudolph,
president of EDS Electronic Markets. "We are opening a new avenue of marketing while leveraging
two of EDS' strengths: the application of information technology and our experience in managing the
complexities that come with such progress."
"The possibility of advertising on ATMs has been considered for some time as a possible
enhancement to our customers, but not until recently, when we were able to incorporate advances in
video quality, did we consider it a viable new service," said Dale Dentlinger, director of Product
Management for EDS Consumer Network Services. "We feel that adding video services at ATMs is
not only consistent with EDS' strategy of bringing advanced products and functionality to our
customers, but it will also revolutionize our customers' business model for owning an ATM."
As Sigma Designs announced in November, Diebold Inc., a market leader in the manufacturing and
service of ATMs, is providing technology upgrades for the 165 1064i cash dispensers. Each
upgrade includes the newest version of Diebold's terminal control software, featuring Sigma's
MPEG video capability. The ATM video output utilizes full-screen, full-motion video to provide
color, definition, and image quality never before seen on ATMs.
Response from EDS' advertising community has been favorable. "We have had considerable interest
in this new technology from advertisers," said Don Jarecki, business manager for EDS Retail
Terminal Services. "This is an ideal new alternative to the print medium and is especially flexible for
spot television-type brand advertising. It has the ability to tie in directly at the point-of-sale to
decision-making consumers who have the money to make purchases."
With initial advertising spots being offered on a monthly basis, Nissan Motor Corp. has signed an
agreement to run ads in January 1998. "Competition for share of mind with today's consumer is at a
premium," said Merril Davis, Nissan's Dealer Operations manager. "We believe this ATM pilot can
provide Nissan with an opportunity to communicate our quality and value message to the consumer
without clutter."
The motion picture industry has also shown its desire to run coming attraction trailers within the
ATM 15-second spots, tying them into local cinemas where featured movies are being screened.
"As more traditional forms of advertising are losing their effectiveness, it is becoming more and more
important to find clever, innovative ways to reach our consumers," said Marc Weinstock, director of
marketing for Fox Searchlight Pictures. "If today's consumers are moving targets, this is a viable new
way to make an impression."
With unique software provided by EDS, its ATMs will have the capability of rotating spots and time
advertising to target particular audiences, including morning drive-time, lunch-hour, rush-hour, and
late-night users.
EDS will evaluate the San Diego pilot in light of launching a national rollout at other retail sites later in
1998. With more than 6,000 ATMs nationwide, EDS is one of the largest owners and operators of
ATMs. EDS plans to have full video advertising capability on several thousand EDS ATMs in major
markets by the end of the year.
"We at Sigma are delighted that Diebold -- the ATM industry leader, and EDS -- one of Diebold's
major customers -- have selected Sigma's MPEG playback card to provide ATM multimedia
capability," commented Prem Talreja, vice president of Marketing for Sigma Designs.
"In working with customers such as EDS, Diebold will refurbish existing ATMs as well as ship new
ATMs with Sigma's digital video technology, taking our technology out of the office and literally
placing it on the local street corner. We welcome Diebold as a new technology partner along with
Sony Electronics, Philips Electronics, NewCom, ASE Technologies, and Hughes Network Systems
-- all announced within the past three months," Talreja concluded. About EDS
EDS is a leader in the global information services industry. The company's approximately 100,000
employees specialize in applying a range of ideas and technologies to help business and government
customers improve their economics, products, services, and relationships. EDS, which serves
customers in 42 countries, reported revenues of $14.4 billion in 1996. The company is independent
and publicly owned; its stock is traded on the New York Stock Exchange and the London Stock
Exchange. EDS can be visited via the Internet at eds.com About Diebold
Diebold Inc. (NYSE:DBD), headquartered in Canton, Ohio, is a global leader in providing
card-based transaction systems, security, and service solutions to the financial, education, and
healthcare industries. Founded in 1859, the company develops, manufactures, sells, and services
automated teller machines, campus systems, smart card systems, electronic and physical security
equipment, automated medication dispensing systems, integrated systems solutions, software, and
supplies.
For general information on Diebold and Diebold products, contact Tiffini Bloniarz (Public Relations),
Tel: 330/490-6319, Fax: 330/490-3794 or Email: bloniat@diebold.com . For Diebold Investor
Relations contact Sandy Upperman, Tel: 330/490-3767, Fax: 330/490-3794 or Email:
upperms@diebold.com About Sigma Designs
Sigma Designs, headquartered in Fremont, Calif., is an acknowledged leader in the fast-growing
multimedia market. Sigma entered the multimedia market in 1993 with products based on the
MPEG (Moving Picture Experts Group) standard for compressing and decompressing digital audio
and video signals. Sigma is a driving force in advancement of the MPEG technology used in most
multimedia products on the market today.
Sigma Designs' products, marketed under the REALmagic trade name, include affordable
MPEG/DVD video and audio decoding hardware used in consumer and commercial PC-based
applications. Sigma products are sold worldwide through a direct sales force, distributors, and
original equipment manufacturers (OEMs). For more information, visit the company's web site at
sigmadesigns.com
Note to Editors: Except for the historical information contained herein, the matters discussed in this
release include forward-looking statements regarding incremental revenue and are subject to risks
and uncertainties, including the market acceptance of Sigma's MPEG products, the impact of
competitive products and pricing, and other risk factors detailed from time to time in the company's
SEC reports, including the report on Form 10-K for the year ended Jan. 31, 1997 and on Form
10-Q for the quarter ended July 31, 1997.
CONTACTS: S&S Public Relations Inc. (media)
Lauren Finkelman or Sophia Chee, 800/287-2279
lauren@sspr.com or sophia@sspr.com
or
Sigma Designs Inc. (investor relations)
Carol Kaplan, 510/770-2991
carol_kaplan@sdesigns.com
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