CompCore's SoftDVD Integrates Spatializer's New N-2-2 Digital Virtual Surround Technology; Spatializer's Dolby Approved N-2-2 Technology to be Incorporated in CompCore's Software AC-3 Decoder and SoftDVD Player.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Nov. 13, 1996--CompCore Multimedia, Inc. and Spatializer Audio Laboratories, Inc. today announced they are working together to integrate Spatializer's N-2-2(TM) Digital Virtual Surround technology into CompCore's Dolby Digital(TM) (AC-3) software, the audio component of SoftDVD(TM).

CompCore and Spatializer will demonstrate this integrated audio software solution at Comdex, November 18 to 22, in Las Vegas. CompCore is located in booth No. M2562 in the upper level of the Sands Exhibition center and Spatializer can be found at booth No. LS25 in the South Hall of the Las Vegas Convention Center.

CompCore and Spatializer are working together to deliver the 5.1 channel experience of Dolby Digital audio using only two conventional stereo speakers on the personal computer.

CompCore's advanced Dolby Digital software decoder, combined with Spatializer's newly announced N-2-2 technology, makes surround sound a reality for multimedia computers without requiring specialized PC hardware or additional speakers.

Spatializer's N-2-2 technology goes beyond conventional 2-channel downmixing by employing a variety of psychoacoustic techniques to reproduce the full sound of 5.1 audio signals, each positioned in its proper location.

Now, every multimedia personal computer will be capable of truly dazzling audio imaging. No longer is the excitement of multichannel sound restricted only to those with more than two speakers. This technology will also include Spatializer's 3-D Stereo which will enhance any two channel source as well.

"Spatializer N-2-2 technology brings the drama and excitement of multichannel sound to the two speaker listening environment, without sacrificing the fidelity of the audio," said Steven Gershick, chairman, president and CEO of Spatializer Audio Laboratories, Inc.

"I don't think anyone expects computers to be equipped with 5 or 6 speakers any time soon, which is why the enabling combination of CompCore's SoftDVD and Spatializer's N-2-2 will deliver outstanding value to the consumer and OEM alike."

SoftDVD enables personal computers to play MPEG-2 video and Dolby Digital (AC-3) audio in an all-software version, or a software/hardware hybrid combination called Accelerated SoftDVD.

The all-software version of SoftDVD requires an Intel microprocessor which supports MMX technology, an architectural enhancement for improving multimedia and communications on PCs. Accelerated SoftDVD utilizes chips to accelerate the computationally intensive components of video and audio, with the remaining functions in software.

"Audio is a fundamental component of the overall DVD entertainment experience, and Spatializer's N-2-2 virtualization technology really makes a big difference when combined with our SoftDVD," said George Haber, president and CEO of CompCore Multimedia, Inc. "This is not surprising since both CompCore's and Spatializer's technologies have already been qualified by Dolby Laboratories."

Beta versions of SoftDVD which support MPEG-1 & 2, Dolby Digital (AC-3), and MPEG audio decoding in software through the Microsoft MCI interface are now available for qualified OEMs. During the first quarter of 1997, SoftDVD is planned to be available with Spatializer N-2-2 technology, DVD Navigator functionality, copyright protection, and a graphical user interface supported through Microsoft ActiveMovie. Contact CompCore for more information.

Spatializer Audio Laboratories' audio division, Desper Products Inc., is a dedicated developer of next generation audio technologies and a leading provider of 3-D audio solutions and positional audio signal processing technology.

Spatializer's professional technology has been used to enhance hundreds of television broadcasts, motion pictures and compact discs by recording artists such as Madonna, Michael Jackson, Quincy Jones, Barbra Streisand, Bonnie Raitt, and the Eagles.

The company's original patented 3-D audio processing technology has been licensed by leading consumer electronics and computer manufacturers for use in audio, video and multimedia products for both consumer and audio professionals.

Global brand leaders such as Texas Instruments, Compaq, Hewlett-Packard, JVC, Samsung, Panasonic, Labtec, Hitachi, Sharp, Digital Equipment Corporation, and Proton have incorporated Spatializer technology in products ranging from stereo TVs and VCRs, to multimedia laptop and desktop computer systems. Spatializer has its headquarters in Woodland Hills, and has marketing, engineering and R&D facilities in Silicon Valley, Newbury Park, Boston and Tokyo.

CompCore Multimedia, Inc. is a leading video and audio technology provider for MPEG (Moving Pictures Expert Group) products. Founded in 1993, CompCore is currently a privately held California corporation headquartered in Santa Clara.

On October 21, 1996, CompCore announced that it had reached an agreement to be acquired by Zoran Corporation. This acquisition is planned to be completed in January of 1997. CompCore offers MPEG-1 and MPEG-2 audio and video hardware designs to enable its OEM customers to manufacture and ship the highest quality, lowest cost MPEG chips in the industry.

In addition, CompCore also provides its OEM customers with MPEG software technology. SoftPEG enables end-users to play MPEG-1 CD's on their personal computers without requiring specialized hardware.

Over 7 million units of SoftPEG have been sold worldwide since 1995. CompCore's technologies have been adopted by many of the largest PC, graphics boards, chip manufacturers and CD publishers in the world including Hitachi, NEC, Packard Bell, Matsushita, Fujitsu, Sony, Acer, Samsung, Cirrus Logic, Diamond Multimedia, ATI, Matrox, C-Cube, and many others. -0-

Note to Editors: SoftPEG and SoftDVD are trademarks of CompCore Multimedia, Inc.; N-2-2 is a trademark of Spatializer Audio Laboratories, Inc.; Pentium is a registered trademark of Intel Corporation; MMX is a trademark of Intel Corporation; Dolby Digital is a registered trademark of Dolby Laboratories, Inc.; ActiveMovie is a trademark of Microsoft; All other trademarks are the property their respective companies.

CONTACT: CompCore Multimedia, Inc.

Ron Richter, 408/567-0552, ext. 29

[e-mail]

www.compore.com

or

Spatializer Audio Laboratories, Inc.

Angela Johnson, 818/227-3370

[e-mail]

www.spatializer.com