Zoran Corporation Adds Frame Rate Conversion Technology Through Acquisition of Let It Wave

SUNNYVALE, CA, Jun 04 (MARKET WIRE) --
Zoran Corporation (NASDAQ: ZRAN) today announced it has signed a definitive
agreement to acquire Let It Wave, a fabless semiconductor company based in
Paris, France. Let It Wave delivers award winning and patent-pending technology
for video Frame Rate Conversion and image enhancement capabilities for flat
panel
televisions and other consumer electronics products.

The need to reduce motion blur on LCD TVs has driven the introduction of
120Hz panels and the development of Motion Compensated Frame Rate Conversion
("MCFRC") solutions. In addition, studio movie content, including Blu Ray
content, uses 24 images per second, which requires conversion to 60 or 120Hz for
best viewing quality. Let It Wave's unique and proprietary MCFRC technology is
designed to produce sharper images and reduce judder by creating additional
frames using its superior Bandlet technologies. With its multi-scale geometrical
processing, the solution robustly determines the direction of motion regularity,
overcoming the limitations of traditional block-search algorithms. By
acquiring Let It Wave, Zoran intends to deliver high-performance image
processing that enables artifact-free true-MCFRC for flat panel televisions as
well as other video consumer electronics products.

"With this acquisition we believe we can drive the rapid adoption of 120Hz
processing into the mainstream DTV market," said Ram Ofir, senior vice
president and general manager, Home Entertainment division at Zoran. "By
combining the Let It Wave team with our own highly qualified team of video and
image processing engineers, we believe we can deliver the highest-quality
video solutions to multiple fast-growing consumer electronics markets. Our
immediate target market with this technology will be 120Hz LCD TVs, which
industry analysts are currently forecasting to reach approximately 30
million units shipped in 2010, growing to 40 million units by 2012. We expect
to
have the first samples of our MCFRC solution available for customer integration
by
the end of this year."

"Our innovative approach to video processing yields outstanding video
quality
without the common artifacts introduced by current state-of-the-industry motion
adaptive and motion compensated technologies," said Professor Stephane Mallat,
Let It
Wave chairman and co-founder. "Instead of relying on a single motion computation
per
pixel, bandlet algorithms perform a full spatio-temporal analysis of the video
to
performadvanced geometrical interpolations and filtering, which avoids blurring,
ghosting
and shadowing artifacts. Television viewers immediately see improved image
quality on sets using this technology."

Let It Wave was founded in 2001 by Professor Stephane Mallat, Dr. Christophe
Bernard, Dr. Jerome Kalifa, and Professor Erwan Le Pennec to develop
improved image-processing capabilities for video products based on Bandlet
technology at Ecole Polytechnique in Paris. In 2002, the company won the first
national prize for innovation awarded by the French ministry of Research and
Technology and also won the prestigious 2005 European Information Science
Technology Grand Prize, a competition involving entrants from 29 European
countries. Let It Wave was financed primarily by Iris Capital, a
pan-European fund, and I-Source, France.

Under the terms of the agreement, Zoran will acquire Let It Wave in an all
cash transaction valued at up to $27.6 million, which includes earnout
provisions. Zoran believes that the transaction will be accretive on a
non-GAAP basis no later than the second half of 2009, with minimal impact to its
earnings for the remainder of 2008 on a non-GAAP basis. The acquisition is
expected to close on or about June 11, 2008.

About Zoran

Zoran Corporation, based in Sunnyvale, California, is a leading provider
ofdigital solutions for applications in the growing digital entertainment
anddigital imaging markets. With two decades of expertise developing and
delivering digital signal processing technologies, Zoran has pioneered
high-performance digital audio, video, imaging applications and Connect Share
Entertain 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 additional 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.

Forward-Looking Statements

This press release includes a number of forward-looking statements,
including Zoran's
views about future demand for consumer electronic products, Zoran's plans for
the
Let it Wave technology and products, the intended benefits of the
acquisition, the projected market size for products containing the acquired
technology, the projected accounting impact of the acquisition, and the
projected
closing date of the transaction and the material presented in quotations.
These forward-looking statements are subject to many risks and uncertainties
that could
causeactual results to differ materially from what is projected. These risk
factors
include potential difficulties integrating the operations, technologies and
products
of Let It Wave with our operations, unexpected developments in market demand for
our
products or those of our competitors, our reliance on independent foundries and
contractors for our wafer supplies and product assembly and testing;
unpredictable research and development expenses; our dependence on a limited
number of key personnel; the international nature of our operations,
particularly
our operations in Israel; the possibility that the transaction doesn't close
due to the failure of one or more conditions precedent or other issues, the
effects of changing economic conditions on the consumer markets that we
serve and the other factors described under the caption "Risk Factors" and
elsewhere in our Annual Report on Form 10-K and Quarterly Reports on Form
10-Q filed with the Securities and Exchange Commission. Further information
aboutthese and other risks and uncertainties we face can be found in our
filingswith the Securities and Exchange Commission. This release speaks only as
of
the date of issuance and we undertake no obligation to update any
information, including forward-looking information, after the date hereof.

Zoran Corporation:
Karl Schneider
Chief Financial Officer
(408) 523-6500
Email Contact

Company Web Site:
www.zoran.com

Bonnie McBride
(Investors)
(323) 466-0960
Email Contact

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