Zoran, Oak Technology ink merger agreement

Zoran Corp., a provider of digital solutions-on-a-chip for the DVD and digital camera markets, and Oak Technology Inc., a provider of embedded solutions for the HDTV and digital imaging markets, have entered a definitive merger agreement.

The transaction is expected to be completed in Q3 of 2003 and is subject to approval by the stockholders of both companies as well as regulatory approval. The management teams of Zoran and Oak will be combined.

"By combining our technology portfolios, customer bases and worldwide sales infrastructures, we are in a strong position to lead the transition from analog to digital in the home," said Dr. Levy Gerzberg, Zoran's president and CEO. "Together, Zoran and Oak should benefit from a more diversified revenue stream and customer base. Moreover, we anticipate accelerated revenue growth opportunities and potential cost synergies of $13- to $18 million annually, beginning in 2004."