Zoran Corporation Offers DivX Ultra Certified IC Solution for Next Generation DVD Players

Vaddis ICs Enable Playback of Advanced Interactive Features

Berlin, Germany - September 2, 2005 - Zoran Corporation today announced that its Vaddis 882 is among the first integrated circuit solutions to receive DivX Ultra Certification. The recently launched DivX Ultra Certification program will bring consumers a fully interactive, cutting edge digital media experience via the advanced features of the DivX Media Format.

Zoran, a provider of digital solutions for applications in the digital entertainment and digital imaging markets, has long been an official DivX partner with a number of DivX Certified IC solutions including DivX Video On Demand (VOD). By extending that partnership to the new DivX Ultra Certification program, Zoran is among the first integrated circuit suppliers to offer electronics manufactures a full featured, advanced interactive experience through support of the DivX Media Format.

Key elements of the DivX Media Format supported in DivX Ultra Certification include interactive video menus, multiple subtitles, alternate audio tracks, video tags and chapter points. DivX Ultra Certified devices support playback of all versions of DivX video, including DivX video-on-demand titles, while offering the premium, interactive experience enabled by the advanced features of the DivX Media Format.

"We're extremely pleased that Zoran has chosen to pursue DivX Ultra Certification for their leading line of integrated circuit solutions," said Bill Holmes, vice president of Consumer Electronics at DivX, Inc. "The real value of DivX Ultra lies in extending the powerful, interactive features of the DivX Media Format beyond the PC to provide consumers with an interoperable, customizable digital entertainment experience across a range of devices and platforms."

"DivX Ultra Certification offers a unique and compelling consumer experience that combines the great compression and portability of DivX video technology with the interactive features of physical media. We also expect to offer DivX video technology in other products such as Activa-based DVD recorders," said Jinxiang (Gene) Liu, senior vice president and general manager of Zoran's DVD Division, "Combined with features such as HDMI, HD-JPEG, DVD-Audio, SACD decoding, and Class D modulation, the Vaddis 8 series of ICs is one of the most powerful DVD solutions today. We look forward to working closely with the team at DivX to bring DivX Ultra Certified solutions to our partners."

DivX, Inc. is providing a full demonstration of the DivX Ultra Certification program at the IFA technology fair in Berlin, Germany in their booth. For more information on Zoran, visit www.zoran.com

About DivX, Inc.
DivX, Inc. is a consumer-focused video technology company positioned at the center of multimedia convergence. The company's core offering is the DivX® video codec, among the world's most popular video compression technologies with over 200 million users worldwide. The patent-pending DivX video technology offers DVD-quality at 10 times greater compression than MPEG-2 files, enabling full length films to easily fit on a CD or be delivered over broadband connections. DivX video technology powers a range of applications that span the convergence value chain, from a secure IP-based video-on-demand solution to next-generation consumer electronics products and video software applications. DivX, Inc. is headquartered in San Diego, California.

About Zoran Corporation
Zoran Corporation, based in Sunnyvale, California, is a leading provider of digital solutions for applications in the growing digital entertainment and digital imaging markets. With two decades of expertise developing and delivering digital signal processing technologies, Zoran has pioneered high-performance digital audio and video, imaging applications, and Connect and Share technologies for the digital home.

Zoran's proficiency in integration delivers major benefits for OEM customers, including greater capabilities within each product generation, reduced system costs, and shorter time to market. Zoran-based DVD, digital camera, DTV, multimedia mobile phone, and multifunction printer products have received recognition for excellence and are now in millions of homes and offices worldwide. With headquarters in the U.S. and operations in Canada, China, England, Germany, Israel, Japan, Korea, and Taiwan, Zoran may be contacted on the World Wide Web at www.zoran.com or at 408-523-6500.

Zoran and Vaddis are trademarks of Zoran Corporation. All other trademarks are the property of their respective owners.