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Thursday, January 26, 2006
MediaTek Signed Patent License Agreements with Zoran Corporation

MediaTek today announced the signing of patent license agreements with Zoran Corporation, giving an end to a long period of patent infringment complaints conserning optical storage products.

Under the agreements, Zoran will, among other things, grant MediaTek a license to Zoran's patents related to MediaTek?s optical storage products, such as chipsets and firmware used in personal computers. MediaTek will grant Zoran a license to MediaTek's PC optical storage patents.

MediaTek will pay Zoran a license fee of $55 million as well as an additional US$30 million payable in monthly royalty payments over the next thirty months.

In addition, MediaTek and Zoran will immediately dismiss all pending litigations filed against each other in the past.

MediaTek is confident that it will retain its leading position in the global optical storage market given the removal of any concerns over these disputes and obtaining the patent license from Zoran. The company believes that this license from Zoran will help its in-roads upon the development of advanced technology for PC optical storage related products.

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