Apogee Sells Audio Division to SigmaTel; Company to Focus Resources on its MEMS/Nanotechnology Division

Apogee Technology, Inc. (AMEX: ATA), a global provider
of audio integrated circuits and an emerging Micro-Electromechanical
Systems ("MEMS") device supplier, reported today that it has sold the
assets of its audio division, including its Direct Digital Amplifier
(DDX(R)) technology to SigmaTel, Inc. (NASDAQ: SGTL), a global leader
in analog intensive, mixed-signal integrated circuits for the digital
multimedia consumer electronics and computing markets. The engineering
and marketing staff related to the audio division will be offered
positions at SigmaTel to ensure a seamless transfer of the business.
In connection with the asset purchase, Sigmatel will pay Apogee $9.4
million in cash plus a one-year earn-out of up to $4.5 million.
   Herbert Stein, Apogee's Chairman and CEO said, "Apogee has
established itself as a technology innovator, by designing, developing
and marketing silicon solutions based upon proprietary technologies
such as DDX. The Company plans to focus on these core strengths by
using the capital from this sale to enhance the development of its
MEMS/Nanotechnology Division product lines for use in a broad range of
applications. We have made strong progress toward this goal with the
recent announcement of our family of Sensilica(TM) pressure sensors
and the rapid progress that we have made in developing our MEMS based
medical devices."
   In June 2005, the Company announced its first Sensilica "all
silicon" pressure sensor product and has recently completed the design
of six additional sensors. The Company believes its Sensilica products
have size, cost, performance and reliability advantages over
competitive solutions, making them ideal for industrial, consumer,
automotive, medical and HVAC pressure measurement applications.
Initial engineering samples have been supplied to lead customers and
the Company expects to ship production Sensilica devices by the end of
this year. The Company plans to expand its existing worldwide
distribution channel with new independent distributors and
representatives to address new markets for its Sensilica products.
   The Company is performing research to develop new sensor
technologies in cooperation with The Research Foundation of State
University of New York at Stony Brook and New York based Center for
Advanced Sensor Technology. The goal of this research is to combine
nano-composite materials and silicon-based microfabrication processes
to enable a new generation of ultra-sensitive micro-sized sensors for
gas and biological monitoring.
   The Company is also working to develop MEMS based medical devices.
The initial effort is directed towards developing a device to enhance
transdermal drug delivery ("TDD"). The Company recently achieved a key
milestone in the development of its MEMS based TDD platform by
demonstrating in laboratory tests improved drug delivery rates through
human skin. The next step in the development plan is to verify the
effectiveness of the platform with a specific drug application and
then to perform the tests necessary to obtain approval from the
Federal Drug Administration (FDA) to commercialize the product. In
conjunction with completing these key milestones, the Company plans to
pursue partnerships with pharmaceutical companies to further the
development and commercialization of the device. The Company's goal is
to apply its MEMS technology to develop a solution that will provide
painless drug delivery for a wide range of applications while avoiding
problems associated with oral and intramuscular drug delivery.

   About Apogee Technology, Inc

   Apogee Technology is a fabless semiconductor company that designs,
develops and markets silicon based products that incorporate
proprietary technologies. The Company is developing new system-on-chip
products using its analog and digital circuit designs and
Micro-Electromechanical Systems ("MEMS") technology for the consumer,
medical, automotive and communications markets. The Company operates a
worldwide marketing and sales organization and has offices in the US,
Hong Kong and Japan. For more information please visit our web site
at: http://www.apogeeddx.com.

   Certain statements made herein that use the words "anticipate,"
"hope," "estimate," "project," "intend," "plan," "expect," "believe"
and similar expressions are intended to identify forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements involve known and
unknown risks and uncertainties, which could cause the actual results,
performance or achievements of the company to be materially different
from those that may be expressed or implied. Please refer to the
company's risk factors as set forth in the company's filings with the
Securities and Exchange Commission, including its reports on Forms
10-KSB and 10-QSB.