Zoran VaddisTM DVD IC Shipping Inside Xiaxin's Amoisonic Player in China; Xiaxin — A Major Chinese Manufacturer of SVCD and VCD Players — Targets the DVD Market

Business Wire, Nov 18, 1999

SANTA CLARA, Calif.--(BUSINESS WIRE)--Nov. 18, 1999--

Zoran Corporation (Nasdaq:ZRAN), a leading provider of integrated circuits (ICs) and embedded software for digital video and audio applications enabled by compression, announced today that Xiamen Xiaxin Electronics Co., Ltd., one of China's largest home video and audio OEMs, is now shipping its Vaddis III based DVD8156 DVD Player in China under the "Amoisonic" brand name.

While there have been over 45 million SVCD and VCD digital video players already sold in China, the transition to DVD is expected to bring sales of 6 million DVD players next year in this market alone, according to industry analysts.

The DVD8156 is Xiaxin's first six-channel Dolby Digital(TM) DVD player which incorporates advanced video and audio features enabled by the Vaddis III. Capable of playing DVD, SVCD, CVD, VCD, CD-Audio, and MP3 disks, the DVD8156 is a versatile digital video and audio entertainment system.

In addition to performing full six-channel decoding of Dolby Digital content, the Vaddis III provides DTS(TM) passthrough and Karaoke functionality in the DVD8156.

Xiaxin has incorporated Zoran's Digital Video and Audio Processors into several products including their SVD-696 and SVD-777 SVCD/VCD players, and DH9085 Dolby Digital Audio/Video (A/V) Receiver. The strong collaboration between Xiaxin and Zoran has resulted in several joint achievements.

Xiaxin introduced the first Dolby Digital certified A/V Receiver in China and the first Virtual Dolby(TM) certified SVCD player in China using Zoran ICs. These products and the DVD8156 will lead Xiaxin and Zoran into the next millennium.

"Xiaxin is leveraging its success with SVCD and VCD products to offer innovative DVD players to the China market," said Lu Wen Huan, General Manager of Xiaxin Electronic Systems Co. Ltd. "Zoran's Vaddis DVD and SupraAV SVCD decoders have enabled us to create products which support the major standards and have additional features, such as Karaoke and MP3 disk playback. With the introduction of the Vaddis IV, Zoran continues to offer the most cost-effective DVD solutions."

"Xiaxin's expertise in designing, manufacturing, and marketing for the China consumer electronics market has led them to deliver full-featured products," said Dr. Shmuel Farkash, Vice President of Marketing, Video Products of Zoran Corporation. "Zoran's integrated, programmable processors allow our customers to support emerging standards, such as MP3, without additional components, keeping the product price low, while introducing new features."

About the Vaddis III Decoder

The Vaddis III Decoder is Zoran's third generation of DVD decoders. This decoder incorporates software programmable video and audio processors, allowing this chip to support a vast array of features, such as video zooming and a variety of trick play functions. In addition, it has the ability to take advantage of Zoran's extensive SiliconSoftware(TM) library, giving it access to a wide variety of innovative audio algorithms.

This enables the development of DVD players that incorporate 3D virtual surround, Karaoke and leading audio algorithms such as Dolby Digital(TM) playback. For system manufacturers, the Vaddis solution gives the flexibility to integrate with either A/V or ATAPI DVD drives. Vaddis decoders are currently shipping in DVD players worldwide.

The most recent introduction in the Vaddis family is the Vaddis IV, the industry's most advanced Integrated DVD Decoder chip. 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.

About Xiaxin

Established in 1997, Xiamen Xiaxin Electronics Co., Ltd. (formerly Xiamen Solid Electronics, Ltd.) is a large manufacturer of VCR, VCD, SVCD, A/V Receiver and DVD products in China. It is a public company in China whose main product in 1998 was a VCD player, of which 2 million units were sold.

As the first enterprise in China to have obtained ISO9002 certification, the company possesses advanced manufacturing equipment and technologies for consumer electronics production. Xiaxin first exported its VCR products under its own brand "Amoisonic" in 1996.

Xiamen Xiaxin Electronics Co., Ltd. is headquartered in Xiamen, China. For more information about Xiaxin, call (0592) 5058123-3500, or visit their website: www.amoisonic.com.

About Zoran Corporation

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 these standard-based products benefit from Zoran's Standard 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.