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Zoran Super-VCD Decoder Shipping Inside China's First Virtual DolbyR Certified SVCD Player.

SANTA CLARA, Calif.--(BUSINESS WIRE)--July 6, 1999--

Xiaxin, a Leading Chinese Manufacturer, Targets The

Multi-Million Units Market for Digital Video Playback

in China

Zoran Corporation (Nasdaq:ZRAN), a leading provider of integrated circuits (ICs) and software for digital video and audio applications enabled by compression, announced today that Xiaxin Electronics Co., Ltd. started shipping Zoran's SupraAVTM decoder IC in their SVD-696 SuperVCD (SVCD) player for the China market.

Xiaxin is among the top three manufacturers of various digital video players in China, selling over two million players in 1998. The SVD-696 is China's first SVCD player to be certified by Dolby Laboratories and will carry the Virtual Dolby logo, bringing theater-quality surround sound to consumers equipped with only two speakers. Zoran's powerful, yet flexible, SupraAV SVCD decoder executes the virtual sound algorithm, thereby eliminating the need for an additional, dedicated IC.

SVCD has gained rapid acceptance as the replacement for the VCD market due to the higher quality of video and audio and the small incremental cost to the consumer. SVCD is a Chinese government standard supported by all key Chinese manufacturers. Sales of new SVCD players are forecast to exceed 10 million units in 1999. With the swift transition to SVCD, China continues to lead as the world's largest market for digital video playback. Priced competitively at the equivalent of US $125, the SVD-696 is now shipping in volume. An advanced, multi-tray version of the player with further enhanced audio capabilities, is scheduled to start shipping early next month.

"Xiaxin plans to play a major role in the expanding market for digital video in China," said Lu Wen Huan, General Manager of Xiaxin Electronic Systems Co. Ltd. "Zoran's SupraAV decoder provides competitive features such as unparalleled error correction capability for scratched disks and Virtual Dolby processing, enabling us to design a top quality player like the SVD-696."

"Xiaxin's strong design and manufacturing capability proved to be instrumental in establishing Zoran's and Xiaxin's advantage in China," said Dr. Shmuel Farkash, vice president of Marketing, Video Products of Zoran Corporation. "Zoran continues to strengthen its position with leading manufacturers in the rapidly growing digital video market in Asia."

About the SupraAV Decoder

Based on Zoran's leading MPEG-2 video technology, the SupraAV decoder is optimized to enhance the viewing and listening experience for SVCD players. The SupraAV integrates the decoding functionality required for full implementation of the SVCD standard into a single chip. With the ability to take advantage of Zoran's extensive SiliconSoftware(TM) library, the SupraAV has access to a wide variety of innovative audio algorithms, such as 3D virtual surround, music modes and more. In particular, SupraAV supports Karaoke without requiring an additional Karaoke processor, thus dramatically reducing system cost, component count and board space.

ABOUT ZORAN

Zoran Corporation develops and markets integrated circuits (ICs), IC Intellectual Property (IP) cores, and embedded and PC software 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 still camera system on a chip and digital audio. All of these standard-based products benefit from Zoran's "Standards Plus(TM)" technology. Zoran'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, standalone consumer DVD players, SuperVCD players, 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 408/919-4111, or visit our website: www.zoran.com.

Note to Editors: SupraAV, SiliconSoftware, and Standard Plus are trademarks of Zoran Corporation Dolby and Virtual Dolby are registered trademarks of Dolby Labs.
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Publication:Business Wire
Geographic Code:1USA
Date:Jul 6, 1999
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