Zoran Receives Ruling From Israeli Tax Authority Regarding Israeli Tax Withholding on Merger Consideration in CSR Transaction

Zoran Corporation ZRAN has received a tax ruling from the Israeli Tax Authority with respect to the application of Israeli tax withholding to the consideration payable to Zoran stockholders in the proposed merger of Zoran with CSR plc. In general, Zoran stockholders that hold 5% or less of Zoran's outstanding shares as of the closing of the merger and are residents for tax purposes of the United States or other countries that have a tax treaty with Israel will be exempt from Israeli tax withholding if they make the certifications and in some cases submit documentation required by the ruling. As discussed in Zoran's proxy statement relating to the merger, each Zoran stockholder would be subject to Israeli tax withholding at the rates of 20% for individuals and 24% for corporations on its gross merger consideration (both cash and stock), unless Zoran received a tax ruling from the ITA or the stockholder independently requests and obtains an individual tax ruling or exemption certificate from the ITA.