Zoran Announces Digital Camera Processor with Integrated Image Stabilization Technology and Single Lens Reflex Quality

COACH 9 Integrates Advanced Codecs and Connectivity Solutions for Digital Still Cameras and Camcorders - Demonstrated at PMA

Sunnyvale, Calif. - February 27, 2006 - Zoran Corporation (Nasdaq: ZRAN) announced that its highly integrated ninth generation COACH digital camera processor, with integrated image stabilization and blur reduction technology, is available in sample quantities to qualified digital camera manufacturers. Zoran is demonstrating the entire range of advanced COACH 9 product line features at the Photo Marketing Association (PMA) trade show in Orlando, Florida from February 26 to March 1.

The COACH 9 processor employs innovative techniques for achieving the highest image quality and performance. It is the industry’s only digital camera solution that supports high performance and high megapixel sensor quality with only 256Mbit of memory, lowering the system cost.

Consumer studies indicate that the most common issue affecting digital photography results is unwanted hand or object movements. COACH 9 offers new image jitter stabilization for both video and still photos without the use of external components, which also contributes to a lower system cost.

“We believe that Zoran’s COACH 9 processor is the most highly integrated, cost-effective digital imaging and video solution available for digital camera makers today. The increased performance delivered in the COACH 9 product family enables our customers to deliver high-end camera features in new models at affordable prices. Consumers are sure to enjoy the increased number of ‘good pictures’ with our new image stabilization technology currently only available in quite expensive cameras. In addition, they can now view their photos and personal video in high resolution on high definition television screens or print directly to a photo printer,” said Ohad Meitav, senior director of Zoran’s digital camera product line.

"Over 80 million digital cameras were sold worldwide during 2005 and we expect this market to grow to around 96 million units in 2006,” said Chris Chute, research senior analyst at IDC.

Zoran’s COACH family addresses a growing segment of converging digital still cameras that also perform high quality video encoding, rivaling the high quality results from digital camcorders. Compact tapeless camcorders benefit the consumer by making high quality video easy to playback and share on a PC or other consumer devices. The COACH 9 processor supports several popular video formats such as MPEG-4, DivX and Windows Media Video. Additional advanced features included in the COACH 9 product family include: High Definition Multimedia Interface (HDMI) for viewing photos on a high definition television and Pictbridge support for printing to a wide range of color photo printers.

Digital camera manufacturers have a broad range of COACH 9 products to select from, ranging from digital-imaging only solutions to more enhanced versions that include the advanced video codecs and HDMI interface. The COACH 9 product is also available in a multi-chip package for space-savings in ultra slim cameras.

COACH 9-based reference designs from Zoran enable manufacturers to bring new digital camera models quickly to market. The COACH 9 product line maintains firmware and package compatibility with the previous generation COACH 8, so that all customer and third-party development efforts are preserved while migrating to COACH 9.

About Zoran Corporation
Zoran Corporation, based in Sunnyvale, California, is a leading provider of digital solutions in the growing digital entertainment and digital imaging markets. With two decades of expertise developing and delivering digital signal processing technologies, Zoran has pioneered high-performance digital audio and video, imaging applications and Connect and Share technologies for the digital home. Zoran’s proficiency in integration delivers major benefits for OEM customers, including greater capabilities within each product generation, reduced system costs, and shorter time to market. Zoran-based DVD, digital camera, DTV, multimedia mobile phone, and multifunction printer products have received recognition for excellence and are now in hundreds of millions of homes and offices worldwide. With headquarters in the U.S. and operations in Canada, China, England, Germany, India, Israel, Japan, Korea, and Taiwan, Zoran may be contacted on the World Wide Web at www.zoran.com or at 408-523-6500.

Zoran, the Zoran logo, and COACH are trademarks or registered trademarks of Zoran Corporation and its subsidiaries in the United States or other countries. All other names and brands may be claimed as property of others.

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Contact Information
Betty Watkins
Zoran Corporation
408-523-4373
bettyw@zoran.com