Zoran Corporation Updates Its Forecast for the Fourth Quarter 2008

SUNNYVALE, CA — Zoran Corporation (NASDAQ: ZRAN), a leading provider of digital solutions for applications in the digital entertainment and digital imaging markets, today announced that it expects revenues for the fourth quarter of 2008 to be below previously announced expectations.

Based on current information, Zoran now expects revenues in the fourth quarter to be in the range between $68 and $73 million, compared to previously announced expectations of $85 to $90 million.

“The worsening economic environment has severely impacted consumer spending worldwide, resulting in major cancellations and delays in orders from our customers,” said Dr. Levy Gerzberg, Zoran’s president and chief executive officer. “The downturn is being experienced across all of our markets, with some being impacted more than others, and we expect further deterioration in the near term. As a result, we currently expect first quarter 2009 revenues to decline from the fourth quarter. However, we are working aggressively to manage our resources and control expenses in order to emerge from the recession in a strong financial position. In addition, we expect to introduce several new products in 2009 and we continue to see solid design activity with existing products for production throughout the year, positioning us well for our future.”