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Performance and Embedded Software of Zoran Low-Cost IC Brings the Excitement of Dolby Digital(TM) 5.1 Sound To Quiet After Hours Listening

The Golden Gate uses Zoran's ZR38650, multi-format, programmable digital audio processor IC. Dolby Headphone, a development of Lake Technology Ltd of New South Wales Australia and licensed through Dolby Laboratories, creates a natural-sounding simulation of a surround sound speaker system through standard headphones. Sounds appear to come from all around the listener, rather than from inside the head, as with conventional headphone playback.

Lake Technology's years of research and development in sophisticated audio algorithms coupled with Dolby's experience in movie sound resulted in the most natural, fatigue-free headphone reproduction of its kind. The ZR38650's low cost and high processing power with embedded software allows Dolby Headphone to be offered at popular price points. Consumers can now get the full movie theater experience from their favorite DVD action movies without disturbing neighbors or family members.

Zoran offers the ``Golden Gate'' reference design board, along with all needed manufacturing documentation to OEMs giving them the ability to get high quality, low cost Dolby Headphone based products to market fast. This reference design is a complete Dolby Headphone solution, and can be incorporated into any type of audio or video product featuring a headphone outlet.

With the ZR38650's built in SPDIF receiver and transmitter interfaces, the Golden Gate is a complete, standalone Dolby Headphone product. It can be directly connected to a DVD player with just one cable, or can serve as the Dolby Headphone processing engine built into a DVD player or television set.

Roger Dressler, Director of Technology Strategy at Dolby Laboratories commented ``Zoran once again is leading the technology charge for multichannel audio. They were the first with a practical solution for Dolby Digital decoding and, as shown by the rapid implementation of Dolby Headphone on their latest processor, continue to be a front runner.''

``The Zoran Digital Audio Processor is a very price competitive Dolby Headphone implementation and an immediate solution,'' said Leonard Layton, President of Lake Technology. ``Dolby Headphone on Zoran is ideally suited to the new category of products dedicated to quality personal listening.''

Paul Goldberg, Zoran's Vice President of Audio Products added, ``Zoran audio technology, which is now playing in millions of DVD players, and on every Dolby Digital movie screen installed since 1994, has earned Zoran the reputation of being a leading, world-wide, supplier of digital audio solutions. Zoran is very pleased to be the first provider of a complete low cost Dolby Headphone solution.''

About Zoran Corporation

Zoran Corporation develops and markets integrated circuits (ICs), IC Intellectual Property (IP) cores, and embedded software for digital audio and video applications enabled by compression. Zoran also provides complete reference designs based on Zoran's technology. Zoran's product lines and IP include JPEG codecs, MPEG and DVD decoders, digital still camera system on a chip and digital audio.

All these standard-based products benefit from Zoran's Standard Plus(TM) technology. Zoran's ICs are used in numerous digital audio and video products. Leading applications incorporating Zoran's products and IP include professional and consumer video editing systems, filmless digital cameras, standalone consumer DVD players, SuperVCD players, digital speakers and audio systems.

Zoran is headquartered in Santa Clara, California with additional operations in Haifa, Israel, Toronto, Canada and offices in Tokyo, Japan and Shenzhen, China. For more information about Zoran call 408/919-4111, or visit our website: www.zoran.com.

Note to Editors: Standard Plus are trademarks of Zoran Corporation. Dolby, Dolby Digital, and Dolby Headphone are trademarks of Dolby Laboratories.

All other terms and product names are trademarks or registered trademarks of their respective owners, and are hereby acknowledged.

Contact:

     Zoran Corporation
     Karl Schneider, 408/919-4111
     ir@zoran.com
     www.zoran.com
          or
     The Carson Group
     Kristyn Hutzell, 415/617-2543 (Investors)