Zoran's Digital Audio Processor Shipping in Toshiba Corporation's 3rd Generation DVD Players; Joint Efforts by Toshiba and Zoran Result in Toshiba's State-of-the-Art DVD Players

Business Wire, Sept 3, 1998

SANTA CLARA, Calif.--(BUSINESS WIRE)--Sept. 3, 1998--Zoran Corporation (NASDAQ:ZRAN), a world leading provider of integrated circuits (ICs) and software for digital audio and video processing today announced that Toshiba Corporation has selected Zoran's latest Digital Audio Processor -- the ZR38600(TM) -- for use in their third generation advanced DVD players.

Zoran's ZR38600 provides Toshiba's Third generation DVD players the ability to accommodate all current audio coding standards including PCM, Dolby Digital, Digital Theatre Systems (DTS(R)), and MPEG. Toshiba is using Zoran's new processor in their SD2008 and SD2108 DVD Players that started shipping last month.

Zoran Corporation's Vice President of Audio Products, Paul Goldberg, said, "We are very proud to have Toshiba utilizing our ZR38600 in their advanced DVD players. Toshiba is a leading member of the industry-wide alliance creating and promoting the DVD standard.

"The audio and video playback of Toshiba's new SD2108 and SD2008 DVD players is top quality and we are honored to be associated with these products. Toshiba's advanced technology and broad scope of products are material in bringing the home theater experience into consumer's living rooms."

Mr. Goldberg added, "Since Toshiba's first generation of DVD players, Zoran has provided the leading edge digital audio processing technology needed to complement Toshiba's state-of-the-art DVD Video and control devices. By providing advanced audio processor solutions to our customers, we at Zoran are committed to enhancing multi-channel audio reproduction, and the listening experience it offers."

Mr. Koji Hase, general manager of Toshiba Corporation's DVD Product Division said, "The Zoran ZR38600 enabled us to design high performance versatile DVD players which are ready for all currently existing standards of audio playback. Our new third generation line of DVD players utilize breakthrough technologies to bring this format closer to perfection than ever before.

"By using Zoran's ZR38600 together with Toshiba's components, we can provide our customers with a smooth, hassle-free A/V experience regardless of the technology used to encode the audio content."

About the ZR38600

The Zoran ZR38600 is a true third generation Digital Audio Processor. It is the ideal solution for a wide array of digital audio processing tasks. In addition to Dolby Digital, Dolby Pro Logic, and audio data stream identification, these include, bass management, Virtual Surround processing, sophisticated Sample Rate System(TM) music modes, and THX(R) processing.

In the case of Virtual Surround processing, algorithms from seven separate suppliers have been ported to the ZR38600 platform and, because of the computation power of the ZR38600, they can all be executed simultaneously with Dolby Digital decoding.

About Zoran

Zoran Corporation develops and markets software and integrated circuits (IC) for compression enabled digital Audio and Video applications. Zoran also designs complete reference products based on Zoran's technology. Zoran's product lines and Intellectual property (IP) include JPEG codecs, MPEG, DVD and Super-VCD decoders, IC cores, audio decoders for AC-3 and MPEG digital audio streams among others and real-time DVD and VCD software for PC.

All these standard based products benefit from Zoran's Standard-Plus technology. Zoran's software is bundled by PC and graphics-card manufacturers for software and software assisted DVD/VCD playback on PCs. The company's ICs are used in numerous digital Audio and Video products.

Leading applications incorporating Zoran's products and IP are professional and consumer video editing systems, filmless digital cameras, stand alone DVD/VCD players and PC-based systems, digital speakers and audio systems.

Zoran is headquartered in Santa Clara, Calif. 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: ZR38600 is a trademark of Zoran Corporation. All other product and brand names are the property of their respective owners.

CONTACT: Zoran Corporation

Diana Young, 408/919-4111

ir@zoran.com

www.zoran.com

or

Financial Relations Board

Cathy Roberts, 415/986-1591 (Investors)

clr@sf.frbd.com

Alicia Nieva-Woodgate, 212/661-8030 (Media)

anw@ny.frbd.com