Sunnyvale, California - May 18, 2005 - The May 16, 2005, Initial Determination issued by Administrative Law Judge Paul J. Luckern recommends that the United States International Trade Commission issue an exclusion order directed at MediaTek optical disk controller chips, as well as the products of certain MediaTek customers who use those chips.

Contrary to a recent press release by MediaTek, if the Commission follows its usual practice in drafting exclusion orders, the recommended exclusion order would not cover "a few" "old model" MediaTek chips, but instead would encompass any MediaTek optical disk controller chip - old, new or yet-to-be developed — that infringes claim 3 of United States Patent No. 6,584,527 during the life of that patent, which will not expire until 2020. Any such MediaTek chip would be barred from importation into the United States.

The MediaTek optical disk controller chips that Complainants Zoran Corporation and Oak Technology, Inc. accused of infringing claim 3 of the ’527 patent, and which would be among the MediaTek chips encompassed by the recommended exclusion order, include MediaTek’s MT1189, MT1199, MT1318, MT1328, MT1329, MT1338, MT1358, MT1368, MT1388, MT1508, MT1518, MT1528, MT1558, MT1588, MT1618, MT1628, MT1668, MT1688, MT1818 and MT1828 chips. Any other current or future MediaTek chip that infringes claim 3 of the ’527 patent, regardless of whether it was specifically litigated during the ITC Investigation - including any failed attempt to work-around the ’527 patent - also would fall within the scope of the recommended exclusion order.

MediaTek’s recent press release claims that it has "developed a design-around solution that is specifically crafted to avoid infringement of Zoran’s ’527 patent," that "Zoran and MediaTek have mutually agreed that the design-around chips are not within the scope of this investigation," and that "MediaTek has already provided its customers with new generation chipsets to ensure that customers will have an uninterrupted supply."

However, Zoran understands from industry sources that MediaTek’s alleged design-around product is limited to only one chip, the MT1888, that this product is not yet in mass production, and that the MT1888 solution is limited to DVD-RW applications.

Moreover, MediaTek’s alleged work-around chip was removed from the evidentiary hearing before the Administrative Law Judge (and as of Feb 2005) based upon MediaTek’s representation at that time that the chip was a "test part" that had "not been produced in production quantities," and that it "will likely not be produced until after this investigation."

Zoran fully intends to challenge the importation of the MT1888, if and when it ever is imported into the United States, if the exclusion order recommended by the Administrative Law Judge has been issued by the International Trade Commission.

The MediaTek customers that would be covered by the recommended exclusion order include Artronix Technology, Inc., ASUS Computer International, Inc, ASUSTek Computer, Inc., EPO Science & Technology Co., Inc., LITE-ON Information Technology Corp., Micro-Star International Co., Ltd., MSI Computer Corp., TEAC Corporation, TEAC America, Inc. and Ultima Electronics Corp.

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Media Contact
Betty Watkins
408-523-4373
betty.watkins@zoran.com

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