Zoran and Thomson Announce Low Cost Digital-to-Analog Solution To Support the Transition To Digital Broadcast

New A-74 Compliant Reference Design for CRT Televisions and Set-Top Boxes To Be Demonstrated at CES 2006

SUNNYVALE, Calif. -- Nov. 28, 2005 -- Zoran Corporation (Nasdaq: ZRAN) and the Thomson Tuner Group, part of Thomson's Silicon Solutions unit, announced availability of a digital-to-analog A-74 and ATSC compliant reference design powered by Zoran's SupraHD 640 digital television processor and Thomson's ATSC tuner to be demonstrated at CES January 5 to 9 in Las Vegas

The compact design allows CRT manufacturers to integrate, decode, and display digital television feeds, compliant with the A-74 standard set by the ATSC committee, directly into analog television chassis. Due to the level of integration of the components and their price points, the reference design can also be used by set top box manufacturers to quickly build converter boxes that enable existing analog television sets to receive digital terrestrial broadcast stations.

The complete reference design is based on Zoran's SupraHD 640 high definition television processor, Zoran's Cascade 2 demodulator, and Thomson's DTT 7602 tuner designed specifically for the U.S. ATSC/NTSC market. The converter box is targeted at the ATSC compliant market for 480i output, and offers best-in-class price/performance with digital decoding, video encoding, scaling and graphics acceleration. The design also includes advanced development tools and a royalty free operating system.

"Quality DTV reception can be achieved by complying with A-74. Our reference design offers a DVD-class video and audio experience far superior to what consumers are receiving today on their analog NTSC televisions. Congress is converging on a date early in 2009 for the transition and is obligating broadcasters, cable operators, retailers, and television manufacturers to engage in a consumer education campaign regarding the transition. The digital conversion should happen quickly now because it benefits all; the US government, emergency services, consumers, and the broadcast and consumer electronics industries," said Dave Pederson, vice president corporate marketing at Zoran Corporation.

"Thomson is committed to the United States market and hence it was important to launch tuner products to meet guidelines as laid out in the A-74 recommendations by the ATSC. Our collaboration focused tremendously on guaranteeing reliable reception for future DTV products based on this reference design. With our partner Zoran, we are delivering one of the most competitive designs in the market," said Fabrice Corbin, Marketing Manager, Thomson Tuner Division.

"We've worked with Thomson to deliver this reference design because we believed that it was important to partner with an experienced DTV tuner supplier to complement our new Cascade demodulator. Our reference design enables DTV converter boxes at a price point affordable to U.S. households for receiving improved digital broadcasts and access to emergency stations," said Ram Ofir, senior vice president and general manager, DTV division at Zoran.

"Reclaiming the analog TV spectrum for new public safety and advanced digital wireless services will generate billions of dollars for the federal government, so the US Congress is looking for ways to encourage the transition, while making sure that all consumers will be able to receive digital television signals. We expect U.S. shipments of integrated television sets to increase from 6 million in 2005 to 29 million in 2009 and worldwide shipments to increase from 10 million in 2005 to 59 million in 2009. Since Congress is planning to subsidize low-income households, the converter box market in the U.S. is expected to be about 25 million units," said Michelle Abraham, senior analyst at Instat.

About Thomson:

- Partner to the Media & Entertainment Industries Thomson (Euronext Paris: 18453; NYSE: TMS) provides services, systems and technology to help its Media & Entertainment clients -- content creators, content distributors and users of its technology -- realize their business goals and optimize their performance in a rapidly changing technology environment. The Group is the preferred partner to the Media & Entertainment Industries through its Technicolor, Grass Valley, RCA and Thomson brands. For more information: http://www.thomson.net.

The Technology division develops core technologies, and provides technology expertise, intellectual property and solutions to third parties. The division comprises 3 business units: Intellectual Property & Licensing holds a premium portfolio of about 45,000 patents: Silicon Solutions develops system-on-chips own core for communication front-ends -- satellite, terrestrial, DSL, wireless LAN, compression and professional applications, optical and tuners technologies, and Software & Technology solutions develops security and software development services, user interface products, imaging and networking technologies.

About Zoran Corporation

Zoran Corporation, based in Sunnyvale, California, is a leading provider of digital solutions-on-a-chip for applications in the growing consumer electronics markets. With two decades of expertise developing and delivering digital signal processing technologies, Zoran has pioneered high-performance processing into various audio, video, and imaging applications. 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 and imaging 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, Europe, India, Israel, Japan, Korea, and Taiwan, Zoran may be contacted on the World Wide Web at http://www.zoran.com or at 408-523-6500.