C-Cube Message Board - Msg: 1545255

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Technology Stocks : C-Cube

CUBE 35.33

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10:55 AM EST

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To: John Rieman who wrote (16803)	6/6/1997 2:14:00 PM
From: DiViT	of 50808

Zoran DVD Software To Be In Compaq Presario PC In Fall By DEAN TAKAHASHI Dow Jones Newswires SAN FRANCISCO--Zoran Corp. (ZRAN) will announce Monday that Compaq Computer Corp. (CPQ) will use Zoran's DVD software technology in the newest Compaq Presario personal computers, Chief Executive Levy Gerzberg told Dow Jones. The agreement means that Compaq PCs released for the fall selling season will be able to play high-quality movies and computer games from a single disk, Gerzberg said. DVD, which stands for digital versatile disk, stores at least eight times as much data as a compact disk. It allows computers or consumer-electronics products to play a full-length movie on one disk, and it contains storage capacity for more-sophisticated software programs than CD-ROMs. Gerzberg said Compaq will use Zoran's SoftPEG-2 software, which allows the most powerful personal computers with a DVD drive to play back digital video and audio. He declined to quantify the royalties that Zoran will receive from Compaq. The Compaq deal comes on the heels of a similar deal between Zoran and Packard Bell NEC. Both Compaq and Packard Bell plan to use the DVD software in machines with Intel Corp.'s (INTC) most powerful chip, the Pentium II. Machines with less powerful microprocessors will have to use add-on video-processing hardware to run DVD. The licensing moves help lift the uncertainty about whether DVD technology would make it into PC makers' fall lineup. Zoran received a go-ahead to relicense its technology to computer makers after it struck a deal last week to use a copy protection technology under license from Matsushita Electric Industrial Co. Ltd. The Japanese company holds a patent for a technology used to protect DVD products from piracy. ''The roadblocks to DVD have now been overcome,'' said George Haber, a Zoran executive vice president.

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