Matrox Graphics Selects Zoran's Suite of Solutions for DVD and Video Capture.

SANTA CLARA, Calif.--(BUSINESS WIRE)--November 24, 1998--

Zoran's Vaddis(TM) DVD Decoder IC, and SoftDVD(TM) start shipping with Matrox's new MGA-G200 series

Zoran Corporation, (Nasdaq NM: ZRAN), a world leading provider of integrated circuits (ICs) and software for digital audio and video compression, today announced that Matrox Graphics, Inc. has begun shipments of software and hardware DVD solutions for the PC using Zoran's SoftDVD and Vaddis DVD decoder IC with Matrox's award winning line of graphics accelerators. Zoran's Vaddis DVD decoder IC, SoftDVD software DVD decoder and the ZR36060 JPEG IC are now integrated into Matrox's new MGA-G200 series graphics card and upgrade products, offering full DVD, video capture and video editing capabilities. Matrox is shipping the following products with Zoran's technology, optimized for both Windows 95 and Windows 98 operating systems: -0-

     Matrox Products                     Zoran Technology
Marvel G200 and G200-TV         SoftDVD and ZR36060 JPEG IC for video
                                 capture
Rainbow Runner G-Series         ZR36060 JPEG IC for video capture
DVD Video module                ZR36700 Vaddis DVD decoder IC

"We are proud to have been chosen by an industry leader such as Matrox Graphics," said Dr. Isaac Shenberg, Vice President of Sales and Marketing for Zoran Corporation. "We have been working closely with Matrox for several years, providing leading-edge solutions for hardware and software MPEG and JPEG decoding. Zoran remains committed to providing Matrox with cutting-edge video technology, creatively forged into flexible and reliable solutions."

"Matrox Graphics is pleased to work with Zoran on developing innovative technologies and advanced video solutions for the consumer market," said Razid Samdjy, Video Peripherals Product Manager. "Our highly integrated solutions, combined with Zoran's advanced video and audio compression technology, enables Matrox to deliver high-quality video capture and DVD capabilities at affordable price points."

Incorporating Zoran's technology, the Matrox Marvel G200 line provides the ultimate multimedia solution for the PC. While the AGP version of the Matrox Marvel G200 line comes bundled with Zoran's leading SoftDVD product, both the AGP and PCI versions of the Matrox Marvel G200 line can be upgraded with Zoran's hardware DVD technology found on the Matrox DVD Video module. Complemented by Zoran's leading-edge technology, Matrox products have received international acclaim with editorial awards such as PC Magazine's Editors' Choice and Family PC's Best Video Editing Product.

On the Zoran Vaddis DVD Decoder

The Vaddis DVD decoder family is the world's most advanced set of DVD solutions targeted at third-generation consumer stand-alone DVD/VideoCD/CD-DA players and PC-based DVD systems. Based on Zoran's proprietary MPEG 2 video and Dolby Digital audio technology, the Vaddis decoder family integrates the decoding and presentation functionality required for full implementation of the DVD standard in a single chip. The Vaddis DVD decoder is being used by leading DVD player manufacturers such as Sharp and Toshiba.

On the ZR36060 motion JPEG Codec

The ZR36060 is an integrated JPEG codec targeted for consumer video capture and editing, video conferencing, and video email applications. Integrating on a single-chip all the functionality needed for fast and efficient JPEG compression and decompression, the ZR36060 further reduces costs and parts count by providing glueless interfaces to video encoders, video decoders, and graphics chips. The ZR36060 JPEG codec incorporates Zoran's patented bit rate control. This special algorithm and circuitry ensures that the highest level of image quality is achieved for a given bandwidth or memory capacity constraint. Both PCI and USB reference designs are available for evaluating Zoran's JPEG solutions.

On the Zoran SoftDVD

SoftDVD enables MMX-equipped PCs to play DVD content without requiring dedicated decoding hardware. All video and audio decoding, navigation, decryption and 3D audio functions are performed in software. Zoran was the first company in the world to offer a full-software DVD player for use with the PC. SoftDVD also supports six 3D audio algorithms for an enhanced audio experience using only two speakers. Today, entry-level PCs (more than 266Mhz) which utilize a Pentium II processor are capable of running SoftDVD with popular graphics cards to produce a high-quality video and audio experience.

ABOUT MATROX

A Montreal-based graphic chip designer and board manufacturer, Matrox Graphics Inc. is a leader in the graphics industry. In 1993, Matrox was the first to introduce a 64-bit graphics engine for the PC market with its MGA Series and the first to introduce high quality video editing to the consumer market with its breakthrough Rainbow Runner Series in 1997. Matrox's innovative graphics and video technology has been recognized with an unprecedented 400 international awards over the last five years. With 20 years of experience, Matrox continues to deliver leading edge solutions to the graphics and video industry at the best price/performance.

ABOUT ZORAN

Zoran Corporation develops and markets software, integrated circuits (ICs) and IC Intellectual Property (IP) cores for digital audio and video applications enabled by compression. Zoran also provides complete reference designs based on Zoran's technology. Zoran's product lines and IP include JPEG codecs, MPEG and DVD decoders, digital audio processors and real-time DVD software for PC's. All these standard-based products benefit from Zoran's Standard Plus(tm) technology. Zoran's software is bundled by PC and graphics-card manufacturers for software and software assisted DVD playback on PCs. The company's ICs are used in numerous digital audio and video products. Leading applications incorporating Zoran's products and IP include professional and consumer video editing systems, filmless digital cameras, stand alone DVD players, SuperVCD players and PC-based systems, digital speakers and audio systems.

Zoran is headquartered in Santa Clara, California with additional operations in Haifa, Israel, Toronto, Canada and offices in Tokyo, Japan and Shenzhen, China. For more information about Zoran call [phone], or visit our website: www.zoran.com. For our latest press releases please call our fax-on-demand service at 1-800-PRO-INFO, ticker symbol ZRAN.

Note to Editors:

StandardPlus, and Silicon Software are trademarks of Zoran Corporation.