SupraTV Processor Powers AT3705 Television Line Displayed at IBC in Amsterdam

Sunnyvale, California - September 7, 2005 - Zoran Corporation (Nasdaq: ZRAN) announced that its SupraTV processor powers new product families of Digital Video Broadcast (DVB) terrestrial LCD televisions from Acer, shipping to global markets. The new models are on display at the International Broadcast Conference in Amsterdam from Sept 9 to 13.

"Zoran’s SupraTV processor provides the digital television engine for Acer’s new AT3795 LCD television product line we are introducing throughout Europe, the Middle East, Africa, and Canada. Working with Zoran has allowed us to develop LCD televisions that comply with DVB-T & MHEG-5 standards so that we can offer a broad range of high quality digital televisions at attractive consumer price points. We expect our partnership will continue to deliver new products to the growing DTV market long term," said Lutz Schoppe, product business director notebook, handheld and CE EMEA and Pan America.

"Zoran, as a leading developer of new technology for the digital television market, is pleased to support Acer’s established sales channels and its reputation as a high quality supplier of large volume notebook computers and consumer products. Zoran is focused on driving growth in DVB terrestrial television markets. We have developed standard and high definition solutions for Asia, Europe and the U.S.," said Ram Ofir, senior vice president and general manager, DTV Division at Zoran Corporation.

Zoran technology provides the core digital television software in Acer’s family of flat screen LCD televisions: Digital Video Broadcasting (DVB) - terrestrial, and MPEG2-compliant audio and video decoding; a seven day Electronic Programming Guide (EPG), multi-language On Screen Display (OSD), terrestrial channel autoscan, support for up to 200 channels with search options, DVB-subtitles, OSD Teletext decoding, software updates via over-air-download and serial port, dual SCART, stereo audio, Dolby Digital audio output via S/PDIF, infra-red remote, RF input and loop-through. DVB-Common Interface Module and Macrovision support for viewing pay television channels. Selected Acer models are TopUpTV compliant and support MHEG-5 for the U.K. Terrestrial market.

Zoran’s SupraTV processors integrate a MIPS32 CPU, programmable multi-stream transport demultiplexer with conditional access, flexible audio DSP supporting MPEG and WMA audio standards, MPEG video decoder, with a 2D graphics engine and digital video encoder. A wide array of system interfaces ensures that the SupraTV processors fully support single and dual tuner digital video recording, and decoded legacy analog signals in a digital television environment, while a programmable guest bus enables glueless connections to storage media or peripheral devices including Common Interface.

The SupraTV processor product line with supporting reference designs, integrated development environments, and proven silicon software libraries are available for qualified Zoran customers.

About Acer Corporation
Acer Corporation ranks among the world’s top five branded PC vendors, designing and marketing easy, dependable IT solutions that empower people to reach their goals and enhance their lives. In 2000, Acer spun off its manufacturing operation to focus on globally marketing its brand-name products: desktop and mobile PCs, servers and storage, displays, peripherals, and e-business solutions for business, government, education, and home users. Established in 1976, Acer Inc. employs 5,600 people supporting dealers and distributors in more than 100 countries. Revenues in 2004 reached US $7 billion dollars. Please visit www.acer.com.

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 millions of homes and offices worldwide. With headquarters in the U.S. and operations in Canada, China, England, Germany, Israel, Japan, Korea, and Taiwan, Zoran may be contacted on the World Wide Web at www.zoran.com or at 408-523-6500.

Zoran and SupraTV are trademarks of Zoran Corporation. All other trademarks are the property of their respective owners.

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