Microtune’s New High-Quality CMOS Silicon Tuner Family Invigorates Cable’s Next-Generation of Multi-Tuner Set-Tops

Microtune®, Inc. (NASDAQ: TUNE) today announced three new universal digital QAM cable tuners that are engineered to deliver very high radio frequency (RF) performance, to simplify designs and to slash bill-of-materials (BOM) cost for the worldwide cable set-top box market.

Based on a highly integrated, sawless, tuner-plus-splitter architecture, the new MicroTuner™ MT208X tuner family is optimized to deliver superior digital video quality and reliability across global multi-tuner set-tops, including next-generation HD/DVR boxes, video hubs, digital cable gateways and home media servers. When built into cable premises equipment (CPE), the tuners enable cable operators to offer the interactive, personalized video services – HD, on-demand, time-shifted and downloaded video – expected to drive cable revenue and subscriber growth during the next years.

“Competitive pressure and evolving consumer preferences make video more strategic than ever for the cable industry, and cable operators are invigorating their video service offerings with new HD options and on-demand choices,” said Barry F. Koch, Executive Vice President of Microtune. “Operators are evaluating new approaches for set-top box platforms, but they are consistent in their demand for advanced technology that can deliver a full-featured, compelling TV experience at low cost. Our new MT208X family provides the ideal high-performance, cost-optimized RF solution, and it can be flexibly implemented across a broad range of worldwide set-tops boxes.”

NEW CABLE TUNERS DEMONSTRATED AT SCTE CABLE-TEC

This week, the new cable tuners will be featured in a multi-tuner design and demonstrated at Microtune’s booth (Booth 525) during SCTE’s Cable-Tec Expo at the Ernest N. Morial Convention Center, October 20-22, 2010 in New Orleans, LA.

In its booth, Microtune will also feature consumer-end products that showcase the leading edge in consumer cable equipment—DOCSIS® 3.0 cable modems, DOCSIS 3.0 wireless gateways, EMTAs, HD/DVR set-top boxes, video hubs, and digital cable set-top boxes.

THREE TUNERS IN NEW MT208X FAMILY

The MT208X family consists of two companion tuners, the MT2082 and MT2084 for dual- and triple-tuner architectures, and the MT2081 for low-cost single-tuner designs.

• The MT2082 is a high-performance tuner with an integrated loop-through amplifier and an active 3-way splitter. It divides, conditions and amplifies an RF signal for two additional tuners in a multi-tuner set-top box design. The MT2082 allows for dual- or triple-tuner designs that eliminate the requirement for external active components, while ensuring equal levels of performance at each tuner output. The unique tuner front-end architecture supports the same sensitivity and linearity performance across all three tuners. It contrasts with other RF configurations that offer reduced levels of performance as each tuner is added in a multi-tuner cascade.
• The companion MT2084 tuner accepts its RF input from the MT2082 and maintains very high signal quality. Together, the MT2082 and MT2084 eliminate RF splitter, amplifier and power-supply components that are needed in current multi-tuner set-top box designs. They simplify designs, enabling engineers to reduce design cycles. They offer an ease-of-use and very small external BOM that virtually eliminate the need for specialized RF expertise typically required when designing a multi-tuner set-top using RF components.
• With an integrated RF loop-through amplifier, the MT2081 is a single-tuner option that is ideal for basic set-top boxes, including zapper boxes, digital conversion boxes, digital transport adaptors (DTAs), cable modems and low-cost entry level products. As with the other tuners in the family, the MT2081 offers a combination of high levels of integration with a very small external BOM to reduce the specialized RF expertise typically needed to design a single-tuner set-top box or cable modem.

WORLD STANDARD SUPPORT AND REAL-WORLD RF PERFORMANCE

Each tuner in the family supports worldwide cable and TV standards (NorDig Unified DVB-C, DVB-T, and DVB-T2, as well as SARFT GD/J12-2007, RNG/DSG, SCTE40, DOCSIS, EuroDOCSIS™ and ISDB-T) and is compatible with ITU-T J.83 Annex A/B/C QAM performance requirements.

Additionally, the tuners are designed to meet the even more severe operator-imposed requirements of real-world network environments, delivering a clear, consistent signal even under the most challenging digital cable conditions. For U.S. applications, the tuners support tilted and sloped conditions common in fully loaded, high-bandwidth networks. For applications in China, they manage both the high undesired-to-desired channel ratios and weak-strong signal problems in the interference-prone cable networks of the various provinces. The MT2081 and MT2082 also offer a loop-through feature, engineered to meet stringent NorDig Unified requirements and to enable the reception of analog transmissions.

KEY FEATURES AND PERFORMANCE CHARACTERISTICS

The MT208X family is characterized by the following product features:

• Triple tuner plus loop-through without external active components
• Integrated RF splitter for multi-tuner applications
• One single crystal required for multi-tuner applications
• Support for variable channel bandwidths (1.7 to 8 MHz programmable)
• Support for power reporting without the need for demodulator interaction
• Single-point calibration for Received Signal Strength Indication (RSSI)
• Excellent multi-tone performance
• Outstanding large signal-handling capabilities

Product briefs for the MT2081, MT2082 and MT2084 can be found on Microtune’s website at www.microtune.com.

PRICE AND AVAILABILITY

Offered in a small 6 mm x 6 mm 40 pin Quad Flat No-Lead (QFN) package, the MT208X CMOS tuners are sampling now and are priced at sub $2.00 in high volume. To simplify evaluation and design for qualified customers, Microtune offers a series of MT208X evaluation boards and reference designs for digital cable set-top box and modem products.

FOR MORE INFORMATION

Additional information about the MT208X family and the complete suite of Microtune’s cable TV products is available on the Microtune website. Additionally, to read about the issues of designing cable TV set-top box platforms for worldwide markets, please see Microtune’s white paper, Simplify Next-Generation Multi-Tuner Set-Top Box Designs with Advanced New Tuner.

ABOUT MICROTUNE

Microtune, Inc. is a receiver solutions company that designs and markets advanced radio frequency (RF) and demodulator electronics for worldwide customers. Its products, targeted to the cable, digital television and automotive entertainment markets, are engineered to deliver high-performance and reliable video, voice and data signals across a diverse range of end products, from HDTVs, set-top boxes and cable modems to car radios. Microtune is headquartered in Plano, Texas, with key design and sales centers located around the world. The website is www.microtune.com or www.microtune.cn.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This document contains certain forward-looking statements about Microtune, Inc. (“Microtune”) that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These factors include, but are not limited to: (1) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; (2) the outcome of any legal proceedings that have been and may be instituted against Microtune and others following announcement of the proposal or the merger agreement; (3) the inability to complete the merger due to the failure to obtain stockholder approval; (4) the inability to obtain necessary regulatory approvals required to complete the merger; (5) the risk that the proposed transaction disrupts current plans and operations and the potential difficulties in employee retention as a result of the merger; (6) the ability to recognize the benefits of the merger or of any combination of Microtune and Zoran Corporation; (7) the timing of the initiation, progress or cancellation of significant contracts or arrangements, the mix and timing of services sold in a particular period; and (8) the possibility that Microtune may be adversely affected by other economic, business, and/or competitive factors. Except as required by law, Microtune is under no duty to update any of the forward-looking statements after the date of this document to conform to actual results.

These and other risks that are set forth in the “Risk Factors,” “Legal Proceedings” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” sections of and elsewhere in Microtune’s Annual Report on Form 10-K for the year ended December 31, 2009 and Microtune’s most recent Quarterly Report on Form 10-Q for the quarter ended June 30, 2010, each as filed with the Securities and Exchange Commission. Many of the factors that will determine the outcome of the subject matter of this document are beyond Microtune’s ability to control or predict.

Important Additional Information and Where to Find It.

On September 23, 2010, Microtune, Inc. (“Microtune”) filed with the Securities and Exchange Commission (the “SEC”) a preliminary proxy statement in connection with the proposed merger with Zoran Corporation, pursuant to which Microtune would be acquired by Zoran Corporation (the “Merger”) and intends to file a definitive proxy statement with the SEC. Investors and stockholders are urged to read the preliminary proxy statement carefully and, when it becomes available, the definitive proxy statement as well as any other relevant documents filed with the SEC when they become available because they will contain important information about the merger and the parties to the merger. The information in the preliminary proxy statement is not complete and may be changed. Before making any voting or investment decisions with respect to the proposed merger or any of the other matters with respect to which Microtune’s stockholders will be asked to vote pursuant to the proxy statement, Microtune’s stockholders are urged to read the definitive proxy statement and other documents filed by Microtune when they become available. Investors and stockholders may obtain a free copy of the preliminary proxy statement and the definitive proxy statement (when available) and other documents filed by Microtune at the SEC website at http://www.sec.gov. The preliminary proxy statement, definitive proxy statement (when available) and other documents also may be obtained for free at Microtune’s Internet website at www.microtune.com or from Microtune by contacting Investor Relations by telephone at 972-673-1850 or by mail at Microtune, Inc., 2201 10th Street, Plano, Texas, 75074, Attn: Investor Relations Department. In connection with the special meeting of Microtune stockholders to approve the adoption of the merger agreement, Microtune will mail copies of the definitive proxy statement to Microtune stockholders who are entitled to attend and vote at the special meeting which is determined by the stockholders of record on October 18, 2010.

Microtune and Zoran and their respective directors, executive officers and other members of their management and employees, under SEC rules, may be deemed participants in the solicitation of proxies from Microtune stockholders in connection with the proposed Merger. Information regarding Zoran's directors and officers is available in Zoran's proxy statement for its 2010 annual meeting of stockholders and Zoran's 2009 Annual Report on Form 10-K, which were filed with the SEC on April 29, 2010 and March 1, 2010, respectively. Information concerning the interests of Microtune’s participants in the solicitation, which may, in some cases, be different than those of Microtune stockholders generally, is set forth in Microtune’s proxy statement for its 2010 Annual Meeting of Stockholders, which was filed with the SEC on April 9, 2010 and available on Microtune's website at www.microtune.com and is also set forth in the preliminary proxy described above and will be set forth in the definitive proxy statement relating to the merger when it becomes available.

TRANSLATIONS

Microtune has only reviewed the English-language version of this press release for accuracy and is not responsible for the accuracy of statements in subsequently translated versions of this document. Readers are strongly advised to review the English-language version of this press release.

EDITOR’S NOTE:

Microtune is a registered trademark and MicroTuner is a trademark of Microtune, Inc. Copyright © 2010 Microtune, Inc. All rights reserved. All other trademarks are the property of their respective holders.

DOCSIS IS A TRADEMARK OF CABLE TELEVISION LABORATORIES, INC.

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