June 7, 2004 – Zoran Corp., a developer of digital signal processing technologies for audio, video, and imaging applications, has agreed to acquire the Israeli chipmaking subsidiary of Emblaze Ltd. for $54.2 million in stock.

Emblaze Semiconductor, to be absorbed by Zoran’s Israeli subsidiary Zoran Microelectronics Ltd., adds high performance, lower-power application processors and technology for multimedia mobile phones. The two companies also have signed agreements to support, develop, and license mobile phones and systems designed by Emblaze mobile. The sale does not include the company’s MPEG-1 product line, which will be transferred from the semiconductor business to the parent company.

“After the recent years’ downturn in our sector, I believe it is prudent for us to monetize our non-core assets and enable the group to focus its efforts on its core competency” of server and handset technologies, said Eli Reifman, Emblaze CEO.

Emblaze’s semiconductor business reported an operating loss of roughly $9000 in fiscal 2003 with net assets of about $750,000, and has achieved design wins at handset manufacturers Samsung, DBTel, Bird, and Telson.