Zoran and Creative Settle Patent Infringement Claim

SUNNYVALE, Calif., April 29 -- Zoran Corporation (Nasdaq: ZRAN - News) and its wholly owned subsidiary Oak Technology, Inc. today reached a settlement with two of the eleven respondents in the pending patent infringement investigation before the United States International Trade Commission (ITC).

The settling two respondents, Creative Technology, Ltd. of Singapore and Creative Labs, Inc. of Milpitas, California, have agreed to stop using MediaTek optical disk controller chips and chipsets that Zoran contends infringe three of its patents in Creative products that are sold in the United States. In return, Zoran will seek to have the two Creative companies withdrawn as respondents in the ITC investigation.

Zoran's claims against the remaining nine respondents, MediaTek and eight other companies using MediaTek ICs, will continue in the ITC. That action requests that the ITC issues exclusion and cease and desist orders prohibiting the importation into the United States of certain MediaTek optical storage and DVD controller chips and chipsets and of certain PC optical storage and consumer DVD products sold by the other respondents that contain the accused MediaTek chips and chipsets.

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 processing into various 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, 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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