HDXtreme 2 Enables Consumers to View Standard Definition DVDs and Display Digital Photos in Full HD Resolution

SUNNYVALE, Calif., Jan. 9, 2007 - Zoran Corporation (Nasdaq: ZRAN) announced that it is demonstrating its Vaddis-based DVD reference design with its latest HDXtreme 2 DVD upconverter with integrated Full HD 1080p High Definition Multimedia Interface (HDMI) at CES 2007 in Las Vegas.

Zoran expects mass production quantities to ship during the first quarter of 2007 to major DVD player manufacturers to enable the new generation of DVD players to digitally transmit the highest quality video, audio and digital photos to HDMI 1080p-equipped high definition televisions.

"Zoran has pioneered another first for the DVD market with HDXtreme 2. Consumers can now display their video and digital photos at the highest resolution on high definition televisions. Zoran’s first generation HDXtreme product helped to popularize HDMI-enabled DVD players. This new generation of HDXtreme enables viewing on the highest resolution 1080p televisions, enhancing consumers viewing experience," said Mitchell Golner, senior director DVD product line at Zoran Corporation

As a companion to Zoran’s high-performance Vaddis 8 and Vaddis 9 DVD multimedia processors, HDXtreme 2 offers best in class scaling technology to upconvert standard DVD content to high resolution 1080 progressive video also known as Full HD. A unique feature allows consumers to enjoy viewing digital images at the maximum resolution of their HDTV. The new product allows for easy upgrade from previous versions and is offered in an 80-pin quad flat pack. HDXtreme parts (ZR36722) and a complete reference design kit are available to qualified manufacturers.

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

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Company Contact:
Betty Watkins
Zoran Corporation
(408) 523-4373
betty.watkins@zoran.com