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Technology Stocks : ZORAN (ZRAN) The next C-Cube??

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To: Stoctrash who wrote (46)5/20/1996 10:19:00 AM
From: Eric Hong   of 57
 
From WSJ Briefing Book. I am a DSPG holder. You guys might want to check out the DSPG in the semi group.

Zoran And DSP Group Introduce Low-Cost, High-Quality Desktop
Video Conferencing Solution For Use Over Standard Phone Lines And
The Internet; EyeWay95 Reference Design Board Enables Oems To
Offer Price/Performance Breakthrough For Video Conferencing On
PCS

SANTA CLARA, Calif.--(BUSINESS WIRE)--May 20, 1996--Zoran Corporation (NASDAQ:ZRAN) and DSP
Group, Inc. (NASDAQ:DSPG) today introduced a low-cost reference design board that enables OEMs to build PC
cards for high-quality video conferencing over regular telephone lines. Based on technologies from both companies,
the EyeWay95 is a PCI plug-in card that provides real time voice, data and video conferencing capabilities using the
ITU H.324 video conferencing standard. EyeWay95 will also enable OEMs to create an ITU H.323 based
videoconferencing product operating over the Internet and Local Area Networks (LAN).

With full standards compliance, and a component cost of $59 in OEM quantities, the EyeWay95 shatters the barriers,
that have prevented mass market acceptance of video conferencing. Until now, video conferencing boards cost several
hundreds to several thousands of dollars. Most of them did not enable video conferencing over Plain Old Telephone
Service (POTS) lines but used more expensive ISDN lines resulting higher total system cost. In contrast, the
EyeWay95, installed on a Pentium-based PC with Windows 95, provides a breakthrough in price/performance for
desktop videoconferencing systems.

Combined with a standard high speed 28.8 kbps modem and a standard video camera, EyeWay95 provides a total
solution for video conferencing over analog telephone lines. It also enables H.323-compliant video conferencing over
the Internet and LANs, providing a ubiquitous video and audio communication solution. With an optional TV tuner, the
EyeWay95 board will also allow end users to view all TV programs on their computer monitor.

"Although the desktop videoconferencing market is growing at the rate of over 100% a year, the growth of the market
has been held back by the high cost of existing solutions and lack of standardization," said Will Strauss, president of
Forward Concepts -- a DSP and multimedia market research firm based in Tempe, Ariz. "Low cost solutions such as
the EyeWay95, which use regular telephone lines, will allow desktop video conferencing to penetrate mass markets
and improve the overall communication capabilities of individuals and corporations." EyeWay95 Reference Design

The EyeWay95 reference design board has three major components: Audio compression and decompression from DSP
Group's CT8020, the ZR36120 PCI multimedia controller with application and device driver software from Zoran and
an optional host based video conferencing software from VDOnet.

DSP Group's CT8020, Conferencing and Messaging Co-processor, is an application-specific digital signal processor
(DSP) incorporating the company's True Speech G.723 software and high-performance, full-duplex speaker phone
capability for hands-free video conferencing. Zoran's ZR36120 PCI multimedia controller incorporates PCI bus
mastering, video scaling and overlay of video on the computer monitor. The ZR36120 enables the transfer of
compressed data between the PCI bus and the DSP Group's CT8020, and the transfer of the input video from the
camera onto the PCI bus.

Zoran's ZR36120 PCI multimedia controller, taking advantage of the high-bandwidth of the PCI bus, captures the
video input into the VGA frame buffer for the near side camera display, and simultaneously captures it into the system
memory. This off-loads the transfer tasks from the processor so video can be effectively processed by various third
party compression software, such as VDOnet's. The unique design of EyeWay95 takes full advantage of the
computational strength of both the CT8020 digital signal processor for the high-quality audio component, and the
Pentium host-based signal processing for the video component.

"VDOnet welcomes the introduction of the EyeWay95 reference design as an enabler of mass market PC desktop
videoconferencing," said Asaf Mohr, VDOnet's president and CEO. "Coupling the trends of lower cost and higher
performance PCs with the catalytic ingredients of this design and VDOnet's software will help make
videoconferencing the key feature of 1996 and 1997 model PCs."

"By leveraging Zoran's field proven technology and experience in high-performance video capture and playback to this
reference design, we are bringing low-cost videoconferencing capabilities to all users of the Internet and standard
telephone lines," said Dr. Levy Gerzberg, president and CEO of Zoran Corp. "Zoran and DSP Group partnered on this
project because of DSP Group's dominant contribution in driving the H.324 standard, and being first to market with a
fully featured product," he added.

The CT8020, based on DSP Group's OakDSPCore, provides TrueSpeech G.723 with concurrent Acoustical Echo
Cancellation and various other advanced desktop conferencing and telephony features.

"A key reason for the success of this design is that it combines the best technologies from leading technology
companies such as Zoran and VDOnet," said Serdar Yurdakul, director of computer telephony products at DSP Group.
"Our expertise in building low-cost, high-volume applications for the consumer market makes this reference design
ideal for OEMs targeting large videoconferencing markets." EyeWay95 Meets International Standards

EyeWay95 meets H.324, a standard developed by the International Telecommunications Union (ITU) for multimedia
visual telephony and videoconferencing over regular analog telephone lines using standard modems. DSP Group's
TrueSpeech G.723, jointly developed by DSP Group, Audiocodes, France Telecom, and the University of Sherbrooke,
is the audio compression algorithm for H.324 videoconferencing protocol, while H.263 defines the video encoding
scheme.

The basic compression components, G.723 and H.263 are also planned to be used for videoconferencing in compliance
with the ITU standard H.323 which applies to transmission over the Internet and LANs. Intel and Microsoft recently
announced support for the H.323 Internet videoconferencing protocol. The EyeWay95 reference design is a ready
solution for Internet-based videoconferencing. Price/Availability

The EyeWay95 reference design package comes complete with electrical schematics, parts list, PCB layout and full
software support, including Video-for-Windows capture drivers and audio low-level drivers for the CT8020.

The drivers that support Windows 95 and Windows 3.1 can be easily integrated with many applications, including
H.323 or H.324 videoconferencing applications. The reference design package is available immediately for $995.
OEMs also have the option of licensing VDOnet's H.263 VDOPhone application and video codec software or
pursuing alternate solutions for a complete end-user product. EyeWay95 will be shown next month at the Spring
Comdex in Chicago in Zoran Booth, M5900. About Zoran Corporation

Zoran Corporation (NASDAQ:ZRAN) is a leading supplier of integrated circuits for digital video and audio
compression applications. Zoran's product line includes JPEG codecs, MPEG video decoders, and AC-3 and MPEG
audio decoders. The company's integrated circuits are used in a variety of video and audio products addressing
multimedia and consumer electronics markets. Current applications for Zoran products include professional and
consumer video editing systems, PC-based and stand-alone video CD systems, including the evolving DVD market,
digital audio systems, and filmless and digital cameras. The company is headquartered in Santa Clara, California and
has operations in Haifa, Israel. For more information about Zoran, call 408/986-1314. About DSP Group

DSP Group, Inc. (NASDAQ:DSPG) is a leader in the development and marketing of high-performance, cost-effective
digital signal processing solutions for the consumer telephone, computer telephony and personal computer industries.
By combining three key technologies -- speech processing algorithms, telephony algorithms and digital signal
processors (DSPs) -- the company has delivered a wide range of enabling application-specific DSPs to these
markets. DSP Group is headquartered in Santa Clara for more information about DSP Group, contact
dspg.com or 408/986-4300.

Note to Editors: All products or service names mentioned herein are trademarks of their respective owners.

CONTACT: DSP Group, Inc.
Serdar Yurdakul, 408/986-4300
or
Zoran Corporation
Elisha Caspary and Dave Fronczak, 408/986-1314
or
MCA, Inc.
Carey Mitchell, 415/968-8900
or
Miller/Shandwick Technologies
Richard Burger/Peter Ross, 415/962-9550
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