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Digital Cameras to Ship with Built-in Photo Finishing

LAS VEGAS -- MGI Software Corp., a leader in e-commerce imaging and digital video, and Zoran Corp., a leading provider of Integrated Circuits and embedded software for video and audio applications enabled by compression, today announced a collaboration of leading companies in their respected imaging fields that the companies hope will result in the definitive solution for digital camera owners wishing to get real photographic prints from their digital images.

Zoran Corp., is seamlessly embedding PrintStation for Kodak PhotoNetTM online, developed by MGI using PhotoSuite and PictureVision technologies, into Zoran's world leading camera processor integrated circuit (COACH -- Camera On a CHip) drivers. This will enable camera manufactures of COACH-based cameras to seamlessly integrate and ship PrintStation with each camera. The camera user will use PrintStation to easily order quality prints that will be provided by Wolf Camera via PictureVision technologies. The service will be first available in the U.S., but it is anticipated that it will be gradually offered to digital camera users worldwide.

"This will raise consumers awareness of online photo finishing services, and drive more of them to Kodak PhotoNet," said Kristy Holch, principal, InfoTrends Research Group, Inc. "Furthermore, with PrintStation on the host PC, users will be encouraged to order more prints, reprints, and specialty prints through its streamlined, simplified interface."

PrintStation seamlessly connects digital photographers to photo-finishing labs via the Internet. The application has bright, clean interface that houses a comprehensively easy workflow that leads the user step by step through the ordering and uploading process.

'Checkmate'

"This is not simply an impressive array of imaging companies and technologies, this is a significant breakthrough for the advancement of online photo finishing," said Anthony DeCristofaro, president and CEO, MGI Software. "Embedding an online print service into the installation software of digital cameras is the 'checkmate' move as far as directly capturing the attention of consumers and raising their awareness to the availability of such a service."

PrintStation seamlessly connects digital photographers to photo-finishing labs via the Internet. The application has bright, clean interface that houses a comprehensively easy workflow that leads the user step by step through the ordering and uploading process.

"Zoran is proud to be part of this exciting convergence of the Internet, ICs, software, and sophisticated printing technology," said Dr. Levy Gerzberg, President and CEO, Zoran Corp. "This will not only extend our business model beyond the component revenues, and strengthen our relationships with imaging leaders, it also will complement the efforts and revenues of our OEM customers. Above all else, it will fulfill digital camera owners' thirst for quality prints."

About PrintStation

The PrintStation for Kodak PhotoNet online is client-based software, which offers many advantages over other print services on the market today that reside on the server; namely, speed and efficiency. Users gather their photos and organize their print order prior to connecting and uploading, which minimizes issues such as connection speed. In fact, users can simply walk away from the computer once they select "check out" to begin the upload of their photographs. Even if a connection is lost, the user does not have to reorganize their print order.

About Zoran

Zoran Corp. develops and markets integrated circuits (ICs), IC Intellectual Property (IP) cores, and embedded software for digital video and audio applications enabled by compression. Zoran also provides complete reference designs based on Zoran's technology. Zoran's product lines and IP include JPEG codecs, MPEG and DVD decoders, digital still camera system on a chip and digital audio. All these standard-based products benefit from Zoran's Standard PlusTM technology. Zoran's ICs are used in numerous digital video and audio products. Leading applications incorporating Zoran's products and IP include professional and consumer video editing systems, filmless digital cameras, standalone consumer DVD players, SuperVCD players, digital speakers and audio systems.

Zoran is headquartered in Santa Clara, California with additional operations in Haifa, Israel, Toronto, Canada and offices in Tokyo, Japan and Shenzhen, China. For more information about Zoran call (408) 919-4111, or visit our Web site: www.zoran.com.

About Wolf Camera

Chuck Wolf founded Wolf Camera in 1974. Today the Atlanta-based photo retail chain operates more than 700 stores in 30 states nationwide, and employs over 7,000 associates. Consumers can learn more about Wolf Camera and wolfXpress.com by visiting the respective Web sites at www.wolfcamera.com and www.wolfXpress.com.

About PictureVision

Based in Herndon, VA, PictureVision, Inc., the pioneer in online photography since 1995, is an independently operated, majority owned subsidiary of Eastman Kodak Co.. PictureVision's patented core technology provides the foundation for online digital photography services such as Kodak PhotoNetTM online and AOL's "You've Got Pictures"(sm) in addition to adding functionality to leading image editing software programs such as MGI's PhotoSuite and to Web sites including The Wedding Channel.com, eBay, and NFL.com. The company provides the imaging industry with turn-key technologies and solutions for increasing sales by leveraging the evolution to digital photography. PictureVision's premier product, Kodak PhotoNet online, utilizes its technology to offer online photosharing services for traditional film and digital camera users. Film users request the service when dropping off film for processing, while digital camera users upload pictures directly to the site. Kodak PhotoNet online users can share their photos via email, order photo lab quality prints and customized photo gifts. Consumers can also use pictures stored on Kodak PhotoNet online in partner Web sites and software packages. For more information please visit www.picturevision.com and www.photonet.com

About MGI Software

MGI Software (www.mgisoft.com) is a pioneer and established market leader in e-commerce imaging and digital video. Its early focus on delivering imaging and video technology to the mass market has led to an ever-growing network of partnerships with major consumer electronics manufacturers, computer hardware and software vendors, photo retailers, media companies, and e-businesses. The company's intellectual property spans many aspects of imaging and video, including content creation and editing, content encoding and decoding, Internet distribution systems, Web printing, and online navigation or Zoom. As digital imaging and video become commonplace, it will be MGI Software's technologies that are behind the scenes making it work. MGI Software employs over 230 people with offices in North America, Europe, Pacific Rim, and Japan. MGI Software is publicly traded on The Toronto Stock Exchange under the symbol "MGI".