Pact To Give Both Companies A Strong Foothold In New Markets For Imaging Products
ORLANDO, FL, Feb. 9, 2001 - SanDisk Corporation (NASDAQ:SNDK) and Zoran Corporation (NASDAQ: ZRAN) announced today that they will partner to accelerate the development of MPEG-4 capable digital cameras, flash memory cards and standards. Under a memorandum of understanding signed by both firms, Zoran will integrate new MPEG-4 technologies and other features into its highly successful COACH (Camera On a Chip) processor with SanDisk's technical support, marketing inputs and partial funding. Both companies will collaborate in adding MPEG-4 technology to digital camera systems and flash memory. The new chip will be optimized to work in future digital cameras that use MultiMediaCards, Secure Digital flash memory cards, CompactFlash™ cards and TriFlash components produced by SanDisk.
Products resulting from the partnership will be designed to work with new MPEG-4 compression technology for adding high quality compressed video clips into future digital cameras. MPEG-4 is expected to become a major audio-imaging-video compression standard that can be incorporated into digital cameras, PCs and mobile phones. Availability of digital cameras that incorporate the new chip is currently projected for the second half of next year. Zoran will sell the MPEG-4 enabled COACH chips, while SanDisk will provide the Secure Digital flash memory cards and MultiMediaCards.
The announcement was made at the annual Photo Marketing Association (PMA) trade show where SanDisk (Booth 3137) and Zoran (Booth X1) will display and demonstrate products.
Eli Harari, CEO and president of SanDisk, said, "We are very pleased to be working closely with Zoran because we believe they have one of the best and most experienced engineering teams in the world for imaging and multimedia technologies serving the consumer marketplace. We believe that the new features incorporated in this jointly developed chip and offered at a relatively small incremental cost to camera manufacturers will broaden the appeal of digital cameras and will accelerate the consumer drive towards the use of our flash memory cards with significantly higher storage capacities."
Levy Gerzberg, CEO and president of Zoran, said, "It is a pleasure to be working with SanDisk, a leader and innovator in the flash memory market. This collaboration will allow both companies to produce reference designs for digital products that will take full advantage of the new MPEG-4 standard. Both companies will work together to optimize the MPEG-4 compression algorithms working with the flash storage cards. We believe that this technology will have wide ranging applications beyond digital cameras, including future third generation cell phones."
SanDisk Corporation, the world's largest supplier of flash data storage products, designs, manufactures and markets industry-standard, solid-state data, digital imaging and audio storage products using its patented, high density flash memory and controller technology. SanDisk is based in Sunnyvale, CA.
Zoran Corporation, based in Santa Clara, CA, is a leading provider of digital solutions-on-a-chip for applications in the growing multimedia and consumer electronics markets. Zoran has pioneered high-performance processing into various audio, video and imaging technologies.
The matters discussed in this news release contain forward-looking statements that are subject to certain risks and uncertainties and actual results may vary. Specific factors which could cause the forward-looking statements herein not to be achieved include risks associated with introducing new technologies, delays in the described development activities, the expected availability of offerings from other companies which may be more cost competitive, as well as those items described in SanDisk's and Zoran's annual reports on Forms 10-K and quarterly reports on Forms 10-Q, and under the caption "Factors That May Affect Future Results" in SanDisk's reports, filed with the Securities and Exchange Commission. There can be no assurance that the joint development effort described in this press release will result in production level sales of the planned products, significant increases in demand for SanDisk or Zoran products or the adoption of the MPEG-4 standard by third parties. SanDisk and Zoran assume no obligation to update the information in this release.
All trade names are either registered trademarks or trademarks of their respective holders.