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To: John Rieman who wrote (25959)	12/2/1997 7:37:00 AM
From: coopie	Read Replies (2) \| Respond to of 50808

Hi John, A little ZRAN DVD... bject: ZORAN jpeg/dvd moguls \| Previous \| ------ \| Edit your message \| Earnings \| To: David Nadalin (1025 ) From: coopie Tuesday, Dec 2 1997 7:32AM EST Reply # of 1028 Hi Dave, Don't forget the chip - Sharp WIN!!! Headlines Next Story Zoran/FFM Vaddis DVD Decoder Ships to Major Japanese DVD Maker for New Line of DVD Players Business Wire - December 02, 1997 07:02 %ZORAN ZRAN %CALIFORNIA %COMPUTERS %ELECTRONICS %COMED %ENTERTAINMENT %INTERACTIVE %MULTIMEDIA %INTERNET %PRODUCT V%BW P%BW Jump to first matched term SANTA CLARA, Calif.--(BUSINESS WIRE)--Dec. 2, 1997-- Zoran's Integrated DVD Solution Enables Sharp Corporation to Provide Advanced Feature Set, Compact Size Zoran Corporation (NASDAQ:ZRAN) announced that its Vaddis(TM) DVD decoder IC is shipping to Sharp Corporation for its new line of compact DVD players. Zoran's highly integrated Vaddis decoder offers the advanced feature set and flexibility which enabled Sharp to develop a robust, powerful DVD player solution with a very small size. Zoran developed the Vaddis decoder in close cooperation with its alliance in Japan, FujiFilm Microdevices (FFM), a subsidiary of Fuji Photo Film Co. The collaboration between FFM and Zoran dates back to 1987 and has spanned ICs in applications ranging from digital still cameras, Dolby Digital audio decoders through MPEG 1 decoders and now DVD. "We are very excited that our DVD decoder has been chosen by Sharp, one of the world's leading manufacturers of DVD players, to be included in their product," said Dr. Levy Gerzberg, President and CEO, Zoran Corporation. "Sharp is broadly recognized as a leader in the consumer market and the fact that they have chosen the Vaddis decoder validates the quality and superiority of our product. Vaddis is the latest in a long line of cooperative developments with FFM and we are committed to working with them to further support the market in Japan." "Zoran's highly integrated DVD decoder enabled Sharp to develop a robust, powerful DVD player solution," said Mr. Hiromi Juso, Vice President Video Division, Sharp Corporation. "The advanced feature set of the Vaddis decoder enabled us to bring a superior DVD player to the marketplace." "We at FujiFilm Microdevices are honored to participate in the DVD revolution with leading consumer electronics companies such as Sharp Corporation," said Mr. Norihiko Kato, CEO, FujiFilm Microdevices. "Our successful alliance with Zoran is yielding superior, leading-edge products such as the Vaddis DVD decoder and we intend to continue on this path of innovation to provide competitive solutions to our customers." On the Vaddis DVD Decoder The Vaddis decoder is the world's most advanced DVD solution targeted at second generation consumer stand-alone DVD/VideoCD/CD-DA players and PC-based DVD systems. Based on Zoran's proprietary MPEG 2 video and Dolby Digital audio technology, the Vaddis decoder integrates the decoding and presentation functionality required for full implementation of the DVD standard in a single chip. This includes DVD content protection (CSS), Program stream demultiplexing, MPEG 2 video, MPEG 1 video, Dolby Digital (AC-3) audio, MPEG audio, audio and video synchronization, Linear PCM audio, Subpicture, OSD, Letterbox, Pan-Scan and more. The first member of the Vaddis family, the ZR36700 (in Japan called the MD36700), integrates many of the different components required in first generation DVD systems and interfaces efficiently to the remaining components in the system. Using a Zoran-proprietary implementation, the Vaddis decoder requires only a single 16 Mbit SDRAM for full operation. The Vaddis decoder dramatically reduces the number of chips and the size of the required memory thereby lowering the power consumption and overall cost of a DVD system. Addressing the needs of today's competitive market, the Vaddis decoder implements Zoran's SiliconSoftware(TM) architecture, based on a high-performance DSP technology for enhanced flexibility and programmability. This architecture enables DVD player manufacturers to add features enabling them to differentiate their products. For example, 3D sound can be implemented on the Vaddis decoder as a SiliconSoftware application simultaneously with the required DVD audio decoding functions. 3D sound brings the movie theater experience of multi-channel audio to a DVD player or PC with just two speakers without requiring any additional equipment or circuitry. The Vaddis ZR36700 DVD decoder is in volume production now and is priced at under $30 in volume quantities. About Zoran Zoran Corporation develops and markets integrated circuits, integrated circuit "cores" 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 SoftDVD and SoftPEG software for software-only and hardware assisted decoding of DVD and VideoCD on the PC is bundled by leading PC and graphic system manufacturers. Current applications for Zoran IC products include professional and consumer video editing systems, filmless digital cameras, PC-based or stand-alone VideoCD systems and DVD players, and digital audio systems. 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, Harman Kardon, Hewlett Packard, Hitachi, IBM, Iomega, Kenwood, Marantz, Matrox, Matsushita, miro/Pinnacle, NEC, Packard Bell, Pioneer, Samsung, Sharp, Sony, Toshiba, Truevision, Yamaha and many others. For more information about Zoran call 408/919-4111 or visit our web site at www.zoran.com . About FujiFilm MicroDevices FUJIFILM Microdevices is a subsidiary of Fuji Photo Film Co., Ltd. with headquarters in Sendai Industrial Park, Japan. It is dedicated to the design, manufacture and marketing of multimedia products including: CCD image sensors, JPEG codecs, MPEG, Audio and DVD decoders, high-speed serial bus interfaces (IEEE 1394) and others. Note to Editors: Vaddis, ZR367000 and SiliconSoftware are a trademarks of Zoran Corporation. MD36700 is a trademark of FujiFilm Microdevices. Dolby Digital is a trademark of Dolby Laboratories. CONTACT: Zoran Corp. David Anisman, 408/919-4274 (Director of Marketing - MPEG) davida@zoran.com or Tanya Del Vecchio, 408/919-4229 tanya@zoran.com or Virtual Public Relations (Zoran Media Contact) Carey Mitchell, 650/369-7833 carey@virtualpr.com or Financial Relations Board (Investor Contact) Hannah Bruce, 415/986-1591 hbb@sf.frbd.com

To: John Rieman who wrote (25959)	12/2/1997 1:23:00 PM
From: DiViT	Respond to of 50808

DTV "is not a sprint, it's a marathon."... ÿ 12/01/97 Consumer Electronics Warren Publishing, Inc. (Copyright 1997 by Warren Publishing, Inc.) ÿ Head of Sony's U.S. electronics business again cautioned against raising false expectations that DTV market buildup would reach mass proportions quickly. Noting that U.S. migration from b&w to color TV took 20 years, Sony Electronics Pres.-COO Carl Yankowski told reporters that DTV movement "is not a sprint, it's a marathon." DTV receiver business will take "decade or more before we see broad-scale penetration into the high majority of U.S. households," Yankowski said. "We think it's going to be some time before we see a mass, quick replacement of traditional TV sets." Consistent with statements by other Sony executives, Yankowski wouldn't discuss specifics of its first-generation DTV sets other than to repeat that "we'll have product in the fall of next year." First Sony DTV receivers will be expensive, but how costly depends on "featurization" that's built into product, and those decisions haven't been put to bed, Yankowski said. However, sets will be capable of receiving "any of the Grand Alliance {transmission} recommendations," he said. Sony will support whatever DTV format broadcasters choose to transmit, Yankowski said, and "we are in meaningful real-time development and discussions with them at this point as they clarify their plans." DTV production decisions also haven't been finalized, he said. Sony will continue playing "wait and see" on Circuit City's Digital Video Express (Divx) DVD proposal, Yankowski said, repeating that Sony is strong believer in "open standards." However, he said he has been encouraged by industry interest in Divx announcements: "It simply says that there's enough interest for {Divx} venture to try and encourage growth through this particular decoding rental playback model." Nevertheless, he remained noncommittal on Divx support from Sony, saying only that if there's "enough marketplace interest, then we'll see what we do at that point in time." As for existing DVD business, Yankowski said "we're off to a good start," with DVD shipments 10 times larger than CD at same point in its "life cycle." Yankowski said Sony's U.S. electronics business "has continued to outperform the industry" in fiscal first half ended Sept. 30 (TVD Nov 3 p13). U.S. electronics operation is on pace to exceed $10 billion in sales for fiscal year, which would make it first Sony subsidiary "anywhere in the world" to reach that milestone, he said. Oct. was electronics subsidiary's "best month on record," Yankowski said, but as result, some products are "touch and go" in terms of "our ability to get as much as we can sell into the marketplace." Core businesses such as consumer AV and broadcast and professional products "continue to exceed their profit targets," he said. Moreover, computer and peripherals are profitable for Sony, despite "challenging situation" of price competition, which is particularly acute in CD-ROM drive sector. Mobile electronics performance is "right on plan as that market starts to turn around and stabilize." Sony's year-old consumer PC business has met expectations, Yankowski said: "We're still learning the product cycles and infrastructure, but the situation overall has improved dramatically." He said he still hasn't set market share goals for Vaio line of Sony PCs and peripherals, but "our mind share is in good shape" and Sony's PC operations will exceed $1 billion at year-end and therefore represent "a reasonable startup business." Vaio notebook PCs are contributing to "a very positive image for Sony in the PC marketplace," Yankowski said, and will be "leveraged" in new line of "meaningful peripheral" products called "Vaio World" that use main PC as "hub." He said "we are a player" in PC industry and "we'll continue to grow as a player, but in a different way than being perceived as just a volume shop for the CPU itself." He said Sony believes "most of the profitability lies in the peripherals." Elaborating on challenge of price competition in PC industry, Yankowski said he estimates consumer is getting "$500 and up more value" in average computer purchase than year ago. "Obviously, we have to come up with innovative ways of lowering our components costs, which are 85% of the cost of a desktop PC." Sub-$1,000 computers as category is "very intriguing to me," Yankowski said, responding to questioner. "It's an area in which I want to play, but in a different way than our competition," he said, with Sony product introduction possible within one year. "I'm not interested in offering a sealed box with bare computing capability that doesn't offer unique multimedia value-added {features} at a sub-$1,000 price point, because otherwise, I just get into that commodities game." As we have reported, Sony is planning big MiniDisc push in U.S. for 1998 (TVD Nov 10 p9), and Yankowski said "you will see a major extension nationally of the positive test marketing... we've been doing in the United States." He quipped that MD is "one area where our market share is too high, and we're trying to reduce it by bringing other {suppliers} in." Sony sees MD sales growth reaching double digits in U.S. next year, and 1998 as year in which MD effort will begin for first time to replace Sony's Walkman cassette business, Yankowski said. Convergence "continues to be our corporate strategy" in U.S. and throughout world, he said, and "we're going to continue to capitalize on new business opportunities... and leverage, enhance and digitize our core AV markets." In Sept., Sony for first time overtook Kodak in top U.S. market share for digital still cameras, he said. Sony goal will be to develop "new digital media" businesses based on electronic delivery "pipes" such as Internet, cable, satellite and telcos, Yankowski said. New "hardware and system opportunities" will be Sony's primary focus, he said. Sony also will increase emphasis on "downstream revenue" sources in continuing bid to "transition ourselves from a pure box supplier" to provider of value-added "content systems and services," he said. Five corporate projects have been mapped out involving various Sony subsidiaries throughout world, Yankowski said: (1) Home networking, including development of IEEE-1394 products. (2) Digital imaging, which include Digital Mavica. (3) Enhanced visual communications, including DTV and new phones to be introduced within year capable of downloading images as well as voice and data. (4) Electronic commerce. (5) Electronic music on demand. Plant in Tijuana, Mexico, in which Sony recently invested $15 million has added VCRs to PlayStation production, marking first AV product besides displays to be made by Sony in N. America, Yankowski said: "We're positioning ourselves for new digital products to be made there in the future."