Zoran Settles Litigation With Mediatek and UMC

SUNNYVALE, Calif., February 10, 2006 - Zoran Corporation (Nasdaq NM: ZRAN) announced today that Zoran and its wholly-owned subsidiary, Oak Technology, Inc., have entered into an agreement to settle litigation between Oak, on the one hand, and MediaTek, Inc. and United Microelectronics Corporation, on the other hand. This litigation, which involved various contract-related claims and counterclaims, was instituted in 1997, prior to Zoran’s acquisition of Oak. Under the agreement, the litigation will be dismissed and MediaTek or one of its affiliated companies will pay Zoran $15 million. Net of amounts payable by Zoran to a holder of rights under certain Oak patents, and amounts payable as legal fees, Zoran will realize approximately $7.7 million. In connection with the settlement, Zoran and MediaTek will also grant each other cross-licenses under certain of their patents.

Company Profile
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 hundreds of 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.