LICENSE AGREEMENT SIGNED WITH SIGMA DESIGNS

LONDON, SEPT. 8, 2008 -- Imagination Technologies Group plc (LSE:IMG; "Imagination") - a leader in System-on-Chip Intellectual Property ("SoC IP") - reports that Sigma Designs, Inc., a leading fabless semiconductor company, has licensed a member of Imagination's POWERVR SGX graphics core family under a multiple-use license arrangement for use in SoC devices targeting multimedia consumer electronics products.

Under the terms of its licensing arrangements, Imagination receives licence fees and royalty revenues on SoCs incorporating Imagination's IP.

About Imagination Technologies

Imagination Technologies Group plc (FTSE:IMG) - a leader in semiconductor System on Chip Intellectual Property (SoC IP) - creates and licenses market-leading embedded graphics, video and display accelerators, multi-threaded processors and multi-standard receiver technologies. These IP solutions are complemented by dynamic and extensive developer and middleware ecosystems. Target markets include digital radio and audio; mobile phone multimedia; personal media players (PMP); in-car navigation and driver information; personal navigation devices (PND); Ultra Mobile PC (UMPC) and Mobile Internet Device (MID); digital TV & set-top box; and mobile TV. Its licensees include leading semiconductor and consumer electronics companies, as well as innovative leading edge start-up and fabless semiconductor companies. Imagination has corporate headquarters in the United Kingdom, with sales and R&D offices worldwide. See: www.imgtec.com.

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