Zoran's Vaddis Shipping in Toshiba's New Generation of DVD-Audio Players; Vaddis IVplus DVD IC Certified for Full 6-Channel MLP and DTS Audio Decoding.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--Nov. 30, 2000

Zoran Corporation (Nasdaq:ZRAN), a leading provider of digital solutions-on-a-chip for applications in the growing multimedia and Internet consumer markets, today announced that the Vaddis IVplus DVD Decoder IC is used in Toshiba's new generation of players that support the DVD-Audio standard.

In Toshiba's flagship Model SD9200 the Vaddis IVplus enables theater quality video and audio reproduction of movies and dedicated musical entertainment. This new model is Toshiba's first player introducing DVD-Audio functionality offering audiophile-quality sound for the home. Support for MLP (Meridian Lossless Packing) allows up to 24-bit/192 kHz reproduction of two-channel audio or 24 bit/96 kHz reproduction of 6-channel audio. In addition, the movie experience is enhanced by DTS audio decoding and progressive-scan video output for the ultimate home theater experience.

"We focus on integrating the latest technologies in Zoran's solutions-on-a-chip product lines. By incorporating programmable audio and video processors, we enable our customers to deliver products with support for the latest standards," said Ram Ofir, director of Marketing at Zoran Corporation. "The Vaddis IVplus not only supports these standards, but also delivers video enhancement filtering for sharper images that actually surpass the DVD standard and deliver the best home viewing experience available in DVD players today."

"Our long and productive alliance with Zoran continues to yield innovative and competitive solutions for our customers," said Akira Kashiwagi, CEO, Fujifilm Microdevices Co., Ltd. "The Vaddis product line addresses the needs of the DVD market. The Vaddis IVplus is a new addition, which incorporates the latest capabilities for customers who want to deliver new DVD-Audio players as soon as possible."

"We expect the worldwide annual shipments of DVD players to be greater than 55 million by 2004 as consumer adoption increases and continues to drive the rapid growth of this market," said Michele Abraham, senior analyst for Multimedia markets at Cahners In-Stat Group.

About the Vaddis IVplus DVD Decoder

The Vaddis IVplus Decoder, built upon Zoran's fourth generation DVD technology has enhanced audio capabilities including support for Meridian Lossless Packing (MLP) for DVD-Audio, and full DTS decoding. This digital video and audio decoder incorporates an NTSC/PAL video encoder and 10-bit video Digital-to-Analog Converters (DACs), eliminating the need for an external chip. The Vaddis IVplus supports a vast array of features, such as ZoranZoom and a variety of trick play functions as well as 3D virtual surround, Karaoke, 3D Headphones, and Dolby Digital playback.

About Zoran Corporation

Zoran Corporation, based in Santa Clara, Calif., is a leading provider of digital solutions-on-a-chip for applications in the growing multimedia and Internet consumer markets. With almost two decades of expertise developing and delivering digital compression technologies, Zoran has pioneered high-performance processing into various audio, video, and imaging technologies. 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 is a leading supplier in the rapidly expanding DVD and digital camera markets and in related digital audio and video applications. With headquarters in the U.S. and operations in Canada, China, Israel, Japan, and Taiwan, Zoran may be contacted on the World Wide Web at www.zoran.com or at 408/919-4111.

Note to Editors: Zoran is a trademark of Zoran Corporation. All other trademarks are the property of their respective owners.