08/25/2006

Exhibit 99.1

08/25/2006

Disclosure Statement

This presentation contains forward-looking statements based on current SigmaTel expectations. In particular, slides

relating to SigmaTel’s expectations regarding market sizes, product diversification, revenue and anticipated growth,

future market preferences for storage media, projected product roadmaps, potential future product directions, potential

future product applications employing SigmaTel products, and other slides addressing future events contain 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

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-Q

filed

on

August

9,2006

and

the

Form

10-K

filed

on

February

24,

2006.

08/25/2006

Key Messages

•

World Class Mixed-Signal Technology Company

–

First to MP3 market with highly integrated solution

–

Industry leading 90 nm chip for MP3 market in Q406

–

Targeting best audio & video battery life, lowest heat dissipation and most

cost effective solutions

•

Portable Multimedia Requires Connectivity

–

Established excellence in wireless in 2005

–

Expanding partnerships for future needs

•

Industry Leading Software

–

Key software innovations, easier to use ARM-based SoC

–

Re-useable complete ARM software solution enables multi-generation

upgrades

•

Compelling patent portfolio changing competitive landscape

•

Operating Expense Structure Being Addressed

08/25/2006

Corporate Strategy

•

Leverage mixed-signal SoC

development teams

–

More software than hardware engineers

–

ARM-based media player SoCs

–

High quality, low system design costs

–

Unique hardwired video encode and decode

–

First to market intellectual property position

•

Deliver innovative multimedia solutions

–

Expand consumer electronics product offerings

–

Extensive patent portfolio

•

Focus on SoC

synergy

–

Award winning audio quality

–

Market leading video products

–

Complete digital imaging solutions

08/25/2006

CORE MULTIMEDIA BUSINESS

08/25/2006

MP3 Market Segmentation Chart*

$236M

$8.25

20% = 32Mu

High End

$252M

$4.50

35% = 56Mu

Mid Tier

$144M

$2.00

45% = 72Mu

Low End

Segment $$

Estimate

ASP

Segment Size 2006

(160Mu)

Segment

Segment definition

•

Low End -

Memory <512M, small mono LCD screen, MP3 play-back

•

Mid Tier -

Memory >512M-2G, color screen, motion JPEG, DRM

•

High End –

Memory >2G, 2" screen, MPEG4, DRM10, Bluetooth &/or WiFi

*SigmaTel

estimates

08/25/2006

Total Compressed Audio Market*

181

274

390

526

674

0

50

100

150

200

250

300

350

400

450

500

550

600

650

700

2006

2007

2008

2009

2010

*Includes HDD & Flash Media Players

$MM

* Excludes amortization of non-cash deferred stock-based compensation, as well as one-time charges and amortization related to acquisitions.

Source: Technology Futures Inc.

Units (M)

08/25/2006

Media Player Ecosystem Evolution

2005

2006+

Wired              to                 Wireless

Cable, Connect, PC  …

VoIP, RF, Sync Anywhere

Audio          and             Multimedia

MP3

WMA

AAC

Ogg

Vorbis

WMV

MPEG4

H.264

Music          and                Gaming

Listening  …

Gaming, Advance Applications

Songs, Podcasts

…

Movies, TV, Sports 

Own        and / or        Subscription

CD, Pay-as-you-go Model  …

Subscription

08/25/2006

Multimedia

Player Features

Good

Better

Best

Good

Better

Best

Good

Better

Best

2006

2007

2008

Improved Battery Life

Audio

Text/Meta Data

FM

Color Display

512MB                                          Capacity         

30GB+

PlaysForSure 2.0                        PlaysForSure 2.0+

Audio

Photo

FM

Color Display

Low-Res Video

Audio

Photo

FM/Bluetooth

Color Display

HD Video

Flash/Java Apps

3D Gaming

HDMI Out

VoIP

Text Messaging

WiFi

Hotspot

DMB/DVB-H

Audio

Photo

FM/Bluetooth

Color Display

High Res Video

Flash/Java Apps

Emulated Games

TV Out

WiFi

Hotspot

Audio

Photo

FM/Bluetooth

Color Display

HD Video

Flash/Java Apps

Emulated Gaming

HDMI Out

VoIP

Text Messaging

WiFi

Hotspot

DMB/DVB-H

Accessory Interface

Accessory Interface

Accessory Interface

Accessory Interface

Accessory Interface

08/25/2006

Core Business Strategy

•

Protect the Core

–

Defend the Value Segment with IP protection, public casing and module

partner programs with SoC

development teams focused on multiple

product lines

–

Microsoft®

PlaysForSure™

hard drive reference design

–

Accelerate PMP products through system expertise

–

Leverage MPEG-4 video quality expertise derived through Camcorder

development into PVR, IP Camera solutions

–

Provide ARM-based product stream to leverage customer investments

•

Expand the Core with New Defensible Barriers

–

Exploit Digital Radio Interface, introduce first RF device

–

Partnerships for DAB module

–

Accelerate new radio developments (Bluetooth, DVB, Satellite, etc)

08/25/2006

Video CODEC Evolution*

Video Performance

Battery Life (Hours)

QCIF

QCIF+

QVGA

CIF

VGA

STMP

3700

STMP

3600

STMP

3800

1

2

3

4

5

*based on a 400mAh & MPEG4 SP+MP3

08/25/2006

•

Leader in flash-based media players

–

300+ media player designs

•

STMP3600 + Video SDK

–

Enables PlaysForSure

2.0

–

30 frames per second QCIF or

24 frames per second QVGA.

•

16+ hours of battery life on one AAA battery

•

Hard-wired MPEG-4 ASP/SP, MPEG-2 and JPEG

Decoding

–

Lowest heat dissipation for small form factors

–

Unique competitive advantage

Portable Multimedia SoC

Solutions

08/25/2006

3600 Value Proposition

•

Up to 80% increase in battery

life*

•

200 MHz processing for

superior user interface

•

VFIR

•

USB Host

•

FM Tuner Interface

•

Excellent Video & superior

audio quality**

•

High capacity file

management and

manipulation

Save 144 mm2

*Compared to current high capacity flash-based players on the market

**Measured using Rhode and Schwarz Audio Analyzer

SST

39WF400A

NOR FLASH

On back side

Reduced

to 16MB

Flash

Controller

Audio

Codec

Battery

Charger

32MB

SDRAM

Power

Manager

STMP

3600

08/25/2006

35xx vs. 36xx Monthly Revenue Split

08/25/2006

MULTIMEDIA DIVERSIFICATION

08/25/2006

Digital Camera Market Dynamics

•

IP Camera Market

–

Market Drivers

•

Terrorism concerns

•

Remote monitoring

•

Face / Target Recognition

•

Digital Camera Market

–

Market Drivers

•

Japan, Inc. dominance broken with high quality <$300 HD DCC/DSC

•

CMOS sensors price dropping and quality increasing

•

Small form factor optimized via hard-wired encode

•

Video Compression Applications

–

Market Drivers

•

PVR’s

and wireless video distribution require high quality compression

•

Competition

–

DSP-based Silicon: Easy programming vs. Heat/Battery Life

08/25/2006

Camera Product Strategy

•

Protect the Core

–

Target multiple market segments with video and compression

features

–

Leverage low power, mixed signal capabilities from other

SigmaTel products

•

Create New Defensible Barriers

–

Expand hard-wired video encoding to 1080i for leading

algorithms

–

Patent leading innovations

–

Continue to increase mixed-signal integration

08/25/2006

Digital Camera Market*

81.28

86.52

88.4

95.52

0

10

20

30

40

50

60

70

80

90

100

2006

2007

2008

2009

*Includes IP Cameras, Digital Cameras and Digital Camcorders

$MM

* Excludes amortization of non-cash deferred stock-based compensation, as well as one-time charges and amortization related to acquisitions.

Source: IDC & ABI Research 2004,2005

08/25/2006

STVC8380 Value Proposition

Multi-Functional Applications

Flexible Connectivity and

Storage

FocalPath™

Advanced Video

and Image Processing Block

High Integration SoC Design

with ARM9 core

Low Power Consumption

Quality Video

Feature

Expands the feature set of camcorder products to include voice

recorder, MP3 player and IP Camera capabilities

Offers

support

for

USB

2.0

and

PictBridge

as

well

as

direct

recording to flash and hard drive storage

Supports CCD and CMOS sensors, 12-bit RGB Bayer Pattern, AE,

AWB, AF, color correction, noise reduction and more

Delivers BOM cost savings and fast processing

Enables slim, portable form factor designs with longer battery life

and little heat dissipation due to hard-wired ASIC architecture

Accomplished engineering team proficient in CODEC development

producing superior video quality

Benefit

08/25/2006

Hard-Wired Video SoC Roadmap

PR818S

•

MPEG-4 SP/ASP

CODEC

•

MPEG-2 CODEC

•

JPEG/MJPEG

CODEC

•

ARM922T

STVC8380

•

H.264 baseline

CODEC

up to 720p@30fps

•

MPEG-4 SP CODEC

•

JPEG/MJPEG

CODEC

•

ARM926EJ-S

•

MPEG-4 ASP and

MPEG-2 decode

STVC8880

•

H.264 main, VC-1

advanced CODEC:

1080i/720p@60fps

•

TV Encoder, DCDC

converter, Audio

CODEC, RTC, Image

Stabilization

Available

Now

Q2’06

Q3’06

Q4’06

Q1’07

Q2’07

Q3’07

Roadmap Goals:

•

CODEC Advancement

•

Analog Integration

•

System Power Reduction

08/25/2006

Consumer Audio Product Strategy

•

Protect the Core

–

High performance, high integration and design flexibility

–

Leverage low power, mixed signal capabilities from other

SigmaTel products

•

Create New Defensible Barriers

–

Integrate power management, Class D amplifiers and controller

functions for consumer space

–

Patent leading innovations

–

Continue to increase mixed-signal integration

08/25/2006

High-End Digital TV* Market

Source IMS Research 2006

LCD, Plasma and RPTV units

2006

2007

2008

2009

2010

2011

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Units (M)

*(CRT>32”, LCD>26”, Plasma, RPTV)

CAGR:

24.23%

08/25/2006

SGTV5800 Value Proposition

•

Integration results in BOM savings

–

10 input stereo switch eliminating need for external components

–

Integrated headphone drivers and SPDIF transmitter

–

Optional Sync delay

•

Design flexibility enables simplified system design

–

Sample rate converters simplify connection to HDMI with no external

circuitry

–

Multiple digital I/Os provide simplified audio routing to and from digital

tuner

•

Single audio system design spans entire TV product line

–

Integrates features required in large TVs while still offering cost savings

for smaller TVs

–

Demodulator supports all worldwide audio standards: EIAJ, NICAM,

A2

and BTSC

–

Saves R&D costs, simplifies software development

08/25/2006

TV Audio Roadmap

SGTV5810/5811

SGTV5830/5831

Status: Early Production

•NICAM, BTSC, EIAJ, A2

•Integrated Sync Delay

•TV Audio Switch

•Audio Processing

1H06

2H06

1H07

2H07

“Kingsville”

Status: In Development

•Adds integrated DDX

Class D PWM Controller

•Combine with Class D

Power Stage

“Carthage”

TV Audio Codec

Status: Concept

•TV Audio Switch

•Audio Processing

Companion

Class-D

Power

Stage

08/25/2006

Imaging Systems SoC Strategy

Protect the Core

–

Drive transition to SDK-based products

–

Build Asia applications engineering to expand MFP products

–

Focus SoC

architectures for broader target segments

–

Proliferate new photo frame reference designs to partners

–

Accelerate new Laser and Inkjet products through system expertise

•

Create New Defensible Barriers

–

Continued performance and image quality initiatives for inkjet and

laser technologies

–

Drive new SFP and Dye Sub Photo Printer Solutions

–

Accelerate new Photo Frame initiatives (Bluetooth, WiFi, etc)

–

Patent leading innovations

08/25/2006

Printer/Digital Photo Frame Target Market Size

Units (M)

0

20

40

60

80

100

'06

'07

'08

'09

'10

DPF

DyeSub

Laser

InkJet

08/25/2006

Digital Photo Frame Value Proposition

•

SigmaTel STDC7150 SoC

solution

•

Best in class image performance

•

Connectivity (WiFi, Bluetooth)

•

Print from frame capability

•

Share / View / Manage photos

•

Support all flash card types (CF, SD, MS…)

•

USB host support -

connect USB flash drive / USB camera

08/25/2006

Digital Imaging Value Proposition

Sigmatel provides silicon solutions that:

–

Generate the highest quality photo images

–

Have the most integration for the lowest system cost

–

Include a patented, extensive, flexible firmware library

•

Scan

•

Copy

•

Fax

•

Image Optimization

•

Customized Features

–

Include leading networking and connectivity

–

Drive printer or display systems utilizing

•

Laser printing

•

Ink Jet printing

•

Dye Sublimation printing

•

LCD Digital Photo Frame displays

08/25/2006

STDC2250

Tandem Laser

Color Laser

High End IJ MFP

Mid Mono Laser MFP

Mid IJ MFP

Photo frame

Low End IJ MFP

Low End Laser

Photo printer

DC2000

STDC2040

DC2150

DC2500

STDC3000

STDC1100

STDC1150

“TBC”

Q1 2007

DC1000

0.13um

Enhanced Audio

Enhanced Video

Q3 2007

“LR7”

“Cascade”

Q4 2007

“PFCR”

Q1 2008

STDC7150

STDC8080

90 nm

Digital Imaging SoC

Target Markets & Roadmap

08/25/2006

LEVERAGING INFRASTRUCTURE

08/25/2006

Global Intellectual Property Strategy

•

Protect SigmaTel stakeholders investment

•

Continue innovative development to

strengthen IP portfolio

•

Increase patent filings

•

License SigmaTel IP

•

Petition the ITC to expedite halting the

importing of infringing systems

•

European border seizure measure

322

Patents*

December

31,  2005

77

Patents*

September

2003

318%

Increase

*Patents issued, pending or in process

08/25/2006

Worldwide Support

•

Headquartered: Austin, TX

US offices:  Waltham, MA; Cupertino, CA

•

Worldwide Offices in Cambridge, Shenzhen, Hong

Kong, Taipei, Seoul, Singapore, Tokyo

•

Future Expansion of Asia-Pacific Presence: Beijing,

Shanghai, Osaka

08/25/2006

Customers/Partners

08/25/2006

FINANCIALS

08/25/2006

Profitability Dynamics

•

Mid to High-end customers demand decreased 1H’06

–

Inventories grew at customers and SigmaTel

–

Mixed shifted to low-end with lower margins

•

3600 design wins enabling strong growth at mid to high-end customers

–

Transition to ARM-based hardware and software complete

–

Roadmap to protect core and provide ongoing cost reductions

•

Unique hardwired capabilities and 90 nm designs provide leadership position

•

Key design wins in TV audio, printers and cameras

–

High margin, revenue diversification

•

Expense structure being address

–

Post PC Audio SG&A rationalization

–

Completing acquisition earn out agreements

–

Migration of specific functions to APAC

–

Continued actions to size expenses to revenue through Q1’07

08/25/2006

35xx vs. 36xx Monthly Revenue Split

08/25/2006

Annual Revenue Growth

$30.9

$100.2

$194.8

$324.5

0

25

50

75

100

125

150

175

200

225

250

275

300

325

350

2002

2003

2004

2005

SigmaTel

Revenue

$MM

08/25/2006

37%

48%

54%

54%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

2002

2003

2004

2005

Gross

Margin

Annual Gross Margin

08/25/2006

Annual Pre-Tax Income

$(8.2)

$18.7

$58.9

$74.6

-10

0

10

20

30

40

50

60

70

80

90

2002

2003

2004

2005

* Excludes amortization of non-cash deferred stock-based compensation, as well as one-time charges and amortization related to acquisitions.

$MM

* Excludes amortization of non-cash deferred stock-based compensation, as well as one-time charges and amortization related to acquisitions.

08/25/2006

Cash and short-term investments

Total assets

Long-term debt

Shareholders’

equity

Current Ratio

Balance Sheet Information

($MM)

As of

03/31/06

$40.5

271.0

0.0

208.5

2.7x

As of June 30, 2006

08/25/2006

Pro-Forma Long Term Model*

*Amounts exclude non-cash stock based compensation and amortization of intangibles from acquisitions

15.1%

-7.58%

Net income (loss) 

6.5%

-21.05%

Income tax expense (benefit)

21.5%

-28.64%

Income (loss) before income taxes

20.0%

-29.48%

Operating income (loss)

30.0%

74.46%

Total operating expenses

10.0%

26.88%

Selling, general and administrative

20.0%

47.58%

Research and development

Operating expenses:

50.0%

44.98%

Gross profit

50.0%

55.02%

Cost of goods sold

100.0%

100.00%

Revenues, net

Model

June 30, 2006

Long Term

Quarter Ended

08/25/2006

Third Quarter 2006 Guidance*

•

Revenues $36M –

$42M

•

Pro Forma Gross Margin ~ 45%

•

Diluted non-GAAP loss per share ($0.37) to ($0.29), excluding

approximately $0.63 per diluted share for the gain on the sale of the

PC Audio product line, $0.06 per diluted share of stock-based

compensation expense and approximately $0.02 per diluted share of

expense related to amortization of acquired intangibles

•

GAAP diluted income per share $0.17 to $0.25

*Please refer to the “Forward Looking Statements Disclosure”

slide at the beginning of this presentation.

*Please

refer

to

the

“Forward

Looking

Statements

Disclosure”

slide

at

the

beginning

of

this

presentation.

08/25/2006

Key Messages

•

World Class Mixed-Signal Technology Company

–

First to MP3 market with highly integrated solution

–

Industry leading 90 nm chip for MP3 market in Q406

–

Targeting best audio & video battery life, lowest heat dissipation and most

cost effective solutions

•

Portable Multimedia Requires Connectivity

–

Established excellence in wireless in 2005

–

Expanding partnerships for future needs

•

Industry Leading Software

–

Key software innovations, easier to use ARM-based SoC

–

Re-useable ARM software enables multi-generation upgrades

•

Compelling patent portfolio changing competitive landscape

•

Expense Structure Being Addressed