Zoran Corporation to Acquire Microtune, Inc.

SUNNYVALE, CA--(Marketwire - September 8, 2010) - Zoran Corporation (NASDAQ: ZRAN) today announced that it has entered into a definitive agreement to acquire Microtune®, Inc. (NASDAQ: TUNE). Under the agreement, Zoran will pay $2.92 in cash for each share of Microtune's common stock, resulting in a transaction price of approximately $166 million, or $84 million net of cash acquired. Both boards of directors have approved the transaction, which is expected to close after Microtune shareholder approval, regulatory clearance and satisfaction of customary conditions specified in the agreement. Zoran expects the acquisition to be accretive immediately following the close of the deal, which is expected to be in the fourth quarter of 2010.

Microtune, a pioneer in the development and deployment of silicon tuners for cable set-top-box ("STB"), broadband cable modem, DTV, and automotive entertainment markets, offers a product portfolio that is complementary and synergistic to Zoran's strategic objectives. With industry-leading customers, the combined company will benefit from technology integration and multiple cross-selling opportunities, creating a single point-of-service for customers.

Zoran is increasing its focus on the STB market as part of its strategy to become a complete provider of solutions for consumer home entertainment. Microtune's silicon tuners combined with Zoran's solutions are expected to provide customers a more complete solution from a single supplier and enable OEMs and ODMs to quickly scale cost-performance benefits, and reduce time-to-market for future generations of cable set-top-boxes. Cable operators continue to invest in new technologies, incorporating multi-tuner architectures and DOCSIS® technologies, to accommodate expanding functionality and increasing bandwidth requirements. With Microtune's silicon tuner and radio frequency ("RF") technologies, the combined company is expected to be well positioned to address the new industry challenges.

The acquisition will also strengthen Zoran's position in DTV as the market transitions from traditional can tuners to single-chip TV tuners during the next several years. Adoption of silicon tuners is expected to enable TV manufacturers to meet the growing demand for high-performance, smaller form factor and more cost-effective solutions. In addition, by combining the advanced demodulator technologies of both companies, Zoran's customers will be able to obtain fully-integrated receivers as multiple new standards for demodulation emerge in various worldwide geographies.

Microtune Completes Acquisition of Auvitek

PLANO, Texas--(BUSINESS WIRE)--Microtune®, Inc. (NASDAQ: TUNE) today announced it has completed its acquisition of privately held Auvitek International, Ltd. Auvitek, a developer of demodulation integrated circuits, adds new technology, intellectual property, engineering talent and an enhanced China market presence to Microtune. It increases the depth and diversity of Microtune’s product portfolio for the worldwide digital television (DTV) marketplace, enabling the Company to offer complete receiver front-end solutions to its customers.

Microtune Announces Agreement to Acquire Auvitek

PLANO, Texas & SHANGHAI--(BUSINESS WIRE)--Jul. 10, 2009-- Microtune®, Inc. (NASDAQ: TUNE) today announced the signing of a definitive agreement to acquire privately-held Auvitek International, Ltd. for approximately $9 million in cash and stock and with a potential earn-out if certain performance targets are met, all subject to various standard closing conditions. The acquisition is expected to close during the month of July.

Microtune, inventor of the single-chip TV tuner, is a leading supplier of radio frequency (RF) silicon and systems solutions for the cable TV, digital TV (DTV) and automotive entertainment markets. Auvitek is a supplier of advanced DTV demodulator integrated circuits (ICs) for the HDTV and TV-enabled peripherals markets with primary engineering operations based in Shanghai, China. The addition of Auvitek’s complementary digital components will transform Microtune from a pure-play tuner supplier to a developer of highly integrated RF-to-bits solutions.

Upon the close of the acquisition, Auvitek will be wholly-owned by Microtune. Birch will become Vice President and General Manager of the newly-formed Microtune Digital Television Business, reporting to Executive Vice President, Barry F. Koch.

Under the terms of the agreement, Microtune will pay approximately $6.8 million in cash and one million shares of Microtune stock, with a current value of approximately $2.2 million, for the Auvitek business.

Microtune 10K

Employees: As of December 31, 2008, we had a total of 220 employees worldwide, including 147 in research and development, 37 in sales and marketing and 36 in operations, finance and administration. Of these employees, 141 were located in the United States.

Top Customers: Cisco (Cable) = 29%, Unihan (subsidiary of Asustek serving ARRIS) = 13%, Panasonic (Cable and Automotive) = 12%

Wafer Foundry and processes: "........IBM, Jazz Semiconductor (a Tower Group Company) and X-FAB, to help ensure our future demands are in line with their manufacturing technology roadmaps and capacities. These foundries offer a mature BiCMOS production process. In addition, IBM and Jazz Semiconductor offer advanced silicon germanium (SiGe) process technology.

Assembly, probe and test: We use Amkor in South Korea and in the Philippines and ASE in South Korea for IC packaging and final test. We use Criteria Labs in Austin, Texas for wafer probe and in Penrose, Colorado for tape and reel packaging. We also use ISE in Austin, Texas for wafer probe. We also perform RF testing at our facility in Plano, Texas.