Zoran Introduces Vaddis III -- The World's Most Advanced DVD Decoder IC; Vaddis III Provides Highest Integration and Quality at the Lowest System Cost Business Editors/Technology Writers SANTA CLARA, Calif.--(BUSINESS WIRE)--Sept. 28, 1998--Zoran Corp. (Nasdaq:ZRAN), a leading provider of integrated circuits and software for digital video and audio enabled by compression, announced today the availability of the Vaddis III(TM) (ZR36710) DVD decoder IC optimized for third generation DVD players. The new Vaddis III decoder further expands the functionality of the successful Vaddis(TM) by incorporating additional key functions, essential for designing a competitive DVD product, making it the most integrated solution in production today. The Vaddis III is priced at sub-$20 in high-volume quantities. Based on Zoran's leading MPEG 2 video and Dolby Digital(R) audio compression technology, the Vaddis III enables supreme quality DVD players. The Vaddis III integrates the decoding and presentation functionality required for full implementation of the DVD standard, into a single chip. As part of Zoran's StandardPlus(TM) strategy, a 40 MIPS audio DSP and video features were embedded into the chip thereby substantially improving audio and video quality. Furthermore, by applying Zoran's unique SiliconSoftware(TM) concept, smooth and seamless incorporation of innovative audio algorithms such as 3-D surround, Karaoke as well as future enhancements are enabled. "Vaddis III marks a new milestone for DVD integration in the marketplace," said Dr. Isaac Shenberg, vice president of Sales and Marketing for Zoran Corp. "Its exceptional flexibility and price/performance coupled with our dedicated customer support, present a compelling solution to the leading manufacturers of third generation DVD players." About Vaddis III Highest Quality, Unparalleled Integration The internal architecture of the Vaddis III, which incorporates Zoran's field proven programmable Digital Audio Processor technology, enables the development of DVD systems which meet the highest standards of audio quality. Including an embedded 40 MIPS high performance audio DSP, Vaddis III outperforms other solutions that use 16-bit audio technology or non-optimized audio circuitry. Integrated 3-D Audio, Karaoke -- Reducing System Cost The powerful Audio capabilities of the Vaddis III allows the integration of audio features such as 3-D Audio and Karaoke into the Vaddis III that otherwise require external and expensive circuitry. 3-D audio provides a virtual multi-channel environment from only two speakers. The consumer of a DVD player incorporating 3-D audio capability is engulfed in the soundtrack of a movie from the front, side and rear. Karaoke is a popular feature for the Asian market. This feature can be readily embedded into the Vaddis III thereby eliminating the need for an external karaoke processor. Key functions include Voice Canceling for unhindered sing along, Echo effects and Key Control to match music and singer's pitch. DTS(R)/MPEG 5.1 Playback -- Expanding the Surround Sound World In addition to Dolby Digital and Pro-Logic(R) surround, Vaddis III supports the Digital Theater System (DTS) specification, an audiophile quality, 5.1 channel, digital audio delivery system. DTS formatted data is transmitted through the digital output of the Vaddis III for multi-channel decoding by an audio receiver. Support for MPEG5.1 is also provided via the SPDIF output. Patented Memory Interface -- Reducing Memory and Cost The Vaddis III decoder requires only a single 16-Mbit SDRAM memory for full operation. This Zoran's patented scheme reduces the memory requirements of a DVD system thus dramatically reducing the overall cost when compared to competing solutions. Enhancing Video Quality Further adding to the video capability, the Vaddis III incorporates reverse playback functionality to provide seamless reverse functions in addition to the standard trickplay functions common to DVD players. The reverse trickplay provides smooth transitions for a viewer to single step or fast reverse through scenes. For close-up viewing of the video content, a zoom function is provided to enable the user to zoom in on a particular portion of the video screen. Flexibility -- Supporting Multiple Standards The Vaddis III provides the capability to support multiple standards. For development of a DVD player, backwards compatibility to CD-DA is provided in addition to VideoCD. Emerging standards such as SuperVCD can also be supported thereby providing full backwards compatibility to the popular standards for Digital Video playback. Packaged in a 160-pin TQFP, Vaddis III is optimized for six channels or two channels of highest quality audio output. Additional features include integrated PLL, audio gain control, and integrated bass redirection circuitry. The integrated OSD hardware provides the capability for full screen OSD performance. Field-Proven Technology The Vaddis architecture was the first integrated Audio/Video solution to ship in DVD players. Vaddis is field-proven in DVD players since December 1997 and the Vaddis III is currently in volume production and will ship with consumer DVD solutions in coming weeks. Zoran continues to provide production ready solutions to the market, keeping pace with the industry's rapid progress. About Zoran Zoran Corp. 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 with additional operations in Haifa, Israel; Toronto and offices in Tokyo and Shenzhen, China. For more information about Zoran call 408/919-4111, or visit our Web site: www.zoran.com. 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