SUNNYVALE, Calif. (May 23, 2006) - Zoran Corporation (Nasdaq NM: ZRAN) responded today to a report by the Center for Financial Research and Analysis (CFRA) that identified Zoran as one of 17% of the companies in a survey conducted by CFRA that they considered to be “at risk for having backdated option grants.” The CFRA report, which was issued on May 16, 2006, uses statistical data and draws inferences based on the timing of stock option grants to officers. The report cited three specific sets of Zoran option grants, in August 1998, August 1999 and September 2001.
Upon learning of the CFRA report, the Company referred the matter to the Audit Committee of its Board of Directors for review. Under the direction of the Audit Committee, the Company’s management, assisted by outside counsel, conducted an internal compliance review and concluded that each of the option grants identified by the CFRA report had been properly made at a regularly-scheduled meeting of the Board of Directors or its Compensation Committee and that none of these grants had involved any “backdating.” Management has also conducted a broader review of all other option grants made to the Company’s officers since Zoran’s initial public offering in 1995 and has reported to the Audit Committee that, in the opinion of management, all such grants have also been properly made. Management’s conclusion with respect to these additional option grants is still under review by counsel and the Audit Committee.
Company Profile
Zoran Corporation, based in Sunnyvale, California, is a leading provider of digital solutions for applications 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.
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Contact Information
Zoran Corporation:
Karl Schneider
Chief Financial Officer
(408) 523-6500
ir@zoran.com
Bonnie McBride (Investors)
(415) 388-1635
bonnie@avalonir.com