Zoran's SoftDVD Shipping With Diamond's Leading Graphics Accelerator Board and Monster Audio Card

Business Wire, Sept 8, 1998

SANTA CLARA, Calif.--(BUSINESS WIRE)--Sept. 8, 1998--

Powerful Combination of Zoran's SoftDVD With Diamond's Viper V550

Graphics Card and Monster Sound MX300 Audio Card Brings DVD On PC

To the Mainstream

Zoran Corporation (NASDAQ:ZRAN), a world leading provider of integrated circuits (ICs) and software for digital audio and video compression, today announced that Diamond Multimedia Systems Inc. (NASDAQ:DIMD) is now shipping Zoran's SoftDVD decoder/player with its Viper 550 AGP graphics accelerator and with its Monster Sound MX300 audio card. Enabled by SoftDVD, both the Viper 550 AGP graphics solution and the Monster Sound MX300 can play high quality DVD content on PCs.

"It's a pleasure to be working with an industry leader like Diamond Multimedia on such advanced technology as DVD for PC," said Dr. Isaac Shenberg, Vice President, Sales and Marketing for Zoran Corporation. "Diamond has always been among the market leaders, introducing cutting-edge technologies for use by PC consumers. We believe that Diamond's strong market position will enable volume delivery of DVD-enabled graphics products thereby creating a broader market acceptance for DVD on the PC."

"Zoran has provided us the enabling technology that allows high quality software DVD playback for our Viper V550 graphics accelerator and our Monster Sound MX300 audio card," said David Watkins, Vice President and General Manager of the Multimedia Division at Diamond Multimedia, "SoftDVD gives our OEMs, system integrators, VARs and retail channels a cost-effective, top quality DVD playback solution."

ABOUT SoftDVD

Diamond joins the ranks of major PC OEMs such as Hewlett Packard, Packard Bell and others which have licensed Zoran's SoftDVD technology. SoftDVD enables MMX equipped PCs to play DVD content without having any dedicated decoding hardware. All video and audio decoding, navigation, decryption and 3D audio functions are preformed in software. With more processing power becoming available almost monthly from companies like Intel and AMD, the concept of harnessing the host CPU for software-based DVD playback is gaining ground. Today, entry-level PCs utilize a Pentium II processor running at 266Mhz with an AGP ready motherboard. These low cost systems are capable of running SoftDVD with popular graphics cards, such as Diamond's, to produce a quality video and audio experience for PC users (more information about SoftDVD enabling Diamond's Viper V550 graphics card and Monster Sound MX300 Audio card can be found on Diamond's web site at: www.diamondmm.com ).

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, digital audio processors for decoding and processing digital audio streams such as Dolby Digital and MPEG, 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, 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. For our latest press releases please call our fax-on-demand service at 800/PRO-INFO, ticker symbol ZRAN.

Note to Editors: SoftDVD is a trademark of Zoran Corporation. All other product and brand names are the property of their respective owners.

CONTACT: Zoran Corporation

Yizhar Ganor, 408/919-4111

ir@zoran.com

World Wide Web Site: www.zoran.com

or

Financial Relations Board

Cathy Roberts (Investor Contact), 415/986-1591

clr@sf.frbd.com

or

Financial Relations Board

Alicia Nieva-Woodgate (Media Contact), 415/986-1591

anw@sf.frbd.com