Zoran's Networking Solution Enables Affordable Connected DVD Players With Universal Media Format

New Vaddis-6/MaestroLink Reference Design Now Available to Customers

Sunnyvale, Calif. - January 9, 2004 - Zoran Corporation (Nasdaq: ZRAN) announced that its MaestroLink enabled, Vaddis-6 based networked DVD player reference design is now available to customers.

This solution combines the production proven capability of the Vaddis-6 family of DVD processors with the company's MaestroLink networking solution, addressing the growing market for connected multimedia consumer electronic devices.

Zoran's MaestroLink networked DVD player solution enables the playback of PC based music, photos, and video content on home AV systems and connected consumer electronic devices. This Zoran reference design offers a low cost, flexible design solution for consumer electronic and DVD player manufacturers.

"The market for connected consumer devices is transitioning from early adopters to mainstream users," said Danielle Levitas, director of consumer markets and technologies research at IDC. "In this next phase, OEMs need to bring affordable products to market, and multimedia reference designs such as Zoran's bring us down that path, lowering costs and speeding time-to-market."

"The MaestroLink enabled Vaddis-6 based DVD player reference design ushers in the next generation of connected CE devices," said Jim Chase, director of strategic marketing for Zoran. "Zoran's latest connected DVD player reference design combines a compelling feature set with future proof format support, and offers OEMs the fastest time to market and lowest incremental system cost."

The MaestroLink ASIC combined with Zoran's Vaddis-6 DVD player reference design allows OEMs to add network connectivity to DVD products with minimum design efforts and a low incremental cost.

The MaestroLink software solution for PC connectivity allows all media types viewable in Windows Media Player to be streamed to the networked DVD player to be enjoyed on traditional home AV systems. Media types include all MPEG, Windows Media, QuickTime, and DiVX video formats, as well as JPEG, MP3, WMA and other still image and music formats. Support for formats not supported in the DVD player can be viewed using Zoran's proprietary, real-time virtual DVD server software.

Included in the MaestroLink reference design is neoVIEW lite, an easy to use PC application that allows consumers to aggregate and organize content for viewing on MaestroLink enabled products. MedioStream, supplier of the neoDVD(TM) family of DVD authoring applications for the PC, has specifically developed the neoVIEW(TM) family of PC applications for MaestroLink enabled CE devices. The neoVIEWlite software is included in the MaestroLink reference design and allows consumers to easily organize and prepare content on the PC for viewing on MaestroLink enabled products. More information on MedioStream and the neoVIEW software family can be obtained at www.mediostream.com.

About Zoran Corporation
Zoran Corporation, based in Sunnyvale, California, is a leading provider of digital solutions-on-a-chip for applications in the growing consumer electronics markets. With two decades of expertise developing and delivering digital signal processing technologies, Zoran has pioneered high-performance digital audio, video, and imaging applications. 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, and imaging 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, Europe, Hong Kong, Israel, Japan, Korea, and Taiwan, Zoran may be contacted on the World Wide Web at www.zoran.com or at 408-523-6500.

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