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To: DiViT who wrote (21781)9/2/1997 1:20:00 PM
From: BillyG   of 50808
 
Zoran DVD decoder........

Zoran Adds CSS Authentication/Decryption to Advanced Vaddis
Integrated DVD Decoder; Integration of CSS Authentication/Decryption
Achieves Content Security, Reduces DVD System Cost

SANTA CLARA, Calif.--(BUSINESS WIRE)--Sept. 2, 1997--Zoran Corporation (NASDAQ:ZRAN), the leader in silicon
and software solutions for applications based on audio and video compression, announced today that it has added and
demonstrated fully-compliant CSS authentication/decryption functionality to its advanced Vaddis(TM) ZR36700 Integrated
DVD Decoder.

By combining the Content Scramble System (CSS) licensed by Matsushita Electric Industry, Ltd. with MPEG 2 Video,
Dolby Digital audio and other DVD processing, the Vaddis decoder now offers the industry's most advanced and complete
single-chip solution for DVD playback. With the integrated CSS implementation, Vaddis implements full content security while
significantly reducing the bill of materials for DVD Player and PC DVD Systems. The Vaddis decoder has been selected by
key consumer electronics manufacturers and PC OEMs for integration into their new products.

"Zoran's new Vaddis with CSS technology will be a critical part in our future DVD products," said Lorne Trottier President,
Matrox Graphics. "Zoran's integrated feature-set fulfills the requirements that enables us to offer consumers the highest quality
products combining graphics, video & audio in the market."

"The integration of the CSS copy protection scheme into the Vaddis decoder is part of Zoran's strategy to offer customers
solid protection for their valuable intellectual property," said Dr. Levy Gerzberg, President and CEO of Zoran Corporation.
"By combining CSS copy protection and our advanced decoder into a single-chip, customers have a robust, secure solution to
meet their implementation and cost objectives. We are committed to meeting our customers requirements as they define new
DVD products, and are confident in our ability to deliver superior products like the Vaddis ZR36700."

The Vaddis Decoder

The Vaddis ZR36700 decoder is the world's most advanced DVD solution targeted at second generation DVD players and
PC DVD solutions. Integrating all the decoding and presentation functionality required for DVD, Vaddis implements MPEG
2 Video, Dolby Digital audio, Sub-picture decoding, On-Screen-Display and many other functions. Based on a patented
design, both NTSC and PAL decoding can be implemented using just one single 16 Mbit SDRAM device.

The Vaddis decoder also enables system designers to differentiate their products. It includes a powerful 40 MIPS DSP that
implements Zoran's SiliconSoftware architecture by enabling customized features that go above and beyond the DVD format.
As an example, 3D audio can be implemented in less than the 25% DSP computational power available for SiliconSoftware.
The 3D audio capability brings the immersive experience of multichannel sound to the living room and to PCs with only two
speakers and without the need for additional expensive circuitry. Vaddis implements full playback of the VideoCD 2.0 format
and the playback of mainstream audio CDs (CD-DA).

The Zoran Vaddis ZR36700 with CSS comes in a 160 pin TQFP package. Production is planned starting in Q4 1997.
Production quantity pricing is less than $30. Zoran also offers the Vaddis4PC, a fully functional PC reference design based on
the Vaddis ZR36700 DVD decoder.

About Zoran

Zoran Corporation develops and markets integrated circuits and software for digital video and audio applications enabled by
compression for the PC and consumer multimedia markets. Zoran's product lines include JPEG codecs, MPEG and DVD
decoders, Dolby Digital and MPEG audio decoders, real-time Video CD and DVD software for the PC, and VLSI cores.
The company's software is bundled by PC and graphic system manufacturers for software-only or hardware-assisted Video
CD, DVD and JPEG compressed video playback on the PC. Current applications for Zoran IC products include professional
and consumer video editing systems, filmless digital cameras, PC-based or stand-alone Video CD systems and DVD players,
and digital audio systems.

The company has further strengthened its technology leadership with the recent acquisition of CompCore Multimedia, Inc., a
leading provider of software and hardware IC cores for multimedia products. Zoran is headquartered in Santa Clara,
California with additional operations in Haifa Israel, Toronto, Canada, and Tokyo, Japan

Zoran's products and technologies have been adopted by many of the world's largest manufacturers including Acer, ATI, Avid
Technology, Cirrus Logic, Compaq, Denon, Diamond Multimedia, Dolby, FujiFilm, Fujitsu, Hitachi, IBM, Iomega,
Kenwood, Marantz, Matrox, Matsushita, Miro Computer, NEC, Packard Bell, Philips, Pioneer, Samsung, Sony, Toshiba,
Yamaha and many others. For more information about Zoran call (408) 919-4111.

NOTE TO EDITORS: Vaddis, ZR36700, SoftDVD, SiliconSoftware are trademarks of Zoran Corporation Dolby Digital is a
registered trademark of Dolby Laboratories, Inc. MMX is a trademark of Intel Corporation. All other trademarks are the
property of their respective companies.

CONTACT: Virtual Public Relations
Carey Mitchell, 650/369-7833
carey@virtualpr.com
or
Zoran
MPEG Marketing Manager
Carol Jacobson, 408/919-4235
carolj@zoran.com
or
MarCom Manager
Tanya DelVecchio, 408/919-4229
tanya@zoran.com
WWW site: zoran.com
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