Microtune®, Inc. (NASDAQ: TUNE) today announced that AVM, a leading broadband device manufacturer in Germany, is deploying Microtune’s DOCSIS® 3.0 tuner chipset in its new FRITZ!Box 6360 Cable Modem.

A new addition to AVM’s top-of-the-line FRITZ!Box brand of wireless routers, AVM’s feature-packed 6360 cable modem enables ultra high-speed Internet access, digital Internet telephony and high-quality HD video streaming, all via cable connection. It is based on the EuroDOCSIS™ 3.0 standard and targeted to the European cable operators that are beginning to aggressively rollout EuroDOCSIS 3.0 cable networks.

The EuroDOCSIS 3.0 standard (as with its U.S. counterpart, DOCSIS 3.0), is a cable industry specification that flexibly bonds up to four downstream and upstream cable channels to achieve download speeds of up to 100 Mbps. EuroDOCSIS 3.0 techniques enable impressive performance for a wealth of new bandwidth-intensive voice, data and multimedia services, including the simultaneous transmission of multiple streams of HD video.

The FRITZ!Box cable modem is built on Microtune’s DOCSIS 3.0 chipset, which includes the MT2170 wideband tuner and MT1570 wideband amplifier. Together, the two Microtune chips constitute the two-way RF gateway for EuroDOCSIS 3.0 downstream and upstream channel-bonded communications.

“For the first time ever, a DOCSIS 3.0 cable modem has been integrated into a FRITZ!Box, making cable access to the Internet straightforward and effortless. As with all our products, we deploy state-of-the-art core technologies to give consumers a high-quality, multifunctional router recognized for reliability and ease of use,” said Dr. Gerd Thiedemann, Head of Product Management, AVM. “By combining our systems expertise with Microtune’s field-proven DOCSIS 3.0 chip technology, we now offer a FRITZ!Box-class cable modem that gives consumers maximum flexibility with optimum performance.”

"Microtune’s chipset enabled AVM to develop a flexible cable modem architecture based on our market-proven DOCSIS 3.0 technology, while drawing on our extensive experience in the global cable market,” said Barry F. Koch, Executive Vice President, Microtune. "The FRITZ!Box DOCSIS 3.0 wireless cable modem is designed to enable a new kind of cable user experience for the European market, with fast Internet access, easy networking, Internet telephony and versatile multimedia applications.”

The new FRITZ!Box 6360 cable modem will be displayed in Microtune’s booth (Number 525) at the SCTE Cable-Tec Expo® 2010 on October 20-22, 2010 in New Orleans, LA.

NEW FRITZ!BOX 6360 CABLE MODEM

The new DOCSIS 3.0-based FRITZ!Box is equipped with a VoIP telephone system, for which an integrated DECT base station can be connected to six cordless telephones. Other features include 802.11n, four Gigabit Ethernet ports and a USB 2.0 port. With the integrated Network Attached Storage (NAS) functionality, the new FRITZ!Box, together with an external USB storage device, makes photos, music, videos and other files available across the EuroDOCSIS 3.0 cable network.

MICROTUNE’S WIDEBAND DOCSIS 3.0 CHIPSET

Microtune’s DOCSIS wideband tuner and upstream amplifier are building-block radio frequency (RF) technologies engineered to significantly reduce the required footprint, power consumption and RF bill of materials cost to achieve unprecedented DOCSIS 3.0 performance. When integrated into the FRITZ!Box 6360, they are designed to increase the performance, data rate and reliability for bandwidth-intensive DOCSIS 3.0 transmissions, enabling ultra high-speed data, digital voice, fast high-definition video-on-demand downloads/uploads, interactive on-line gaming, and Internet Protocol (IP) TV video.

For more information about Microtune’s DOCSIS 3.0 products or its complete suite of RF solutions for the cable television market, visit the Company’s website at http://www.microtune.com.

ABOUT CABLE EUROPE LABS AND CABLE EUROPE

Cable Europe Labs, part of the Cable Europe association of cable operators, certifies that vendor equipment meets industry-specified requirements, ensuring high interoperability of the equipment with cable networks offering TV, broadband Internet and telephony services. The first certification last week (in Certification Wave 34) of EuroDOCSIS 3.0 cable modems continues to drive the rollout of cable’s ultra high-speed telecommunications services into the European marketplace. Cable Europe joined forces with CableLabs® in the United States to develop the new DOCSIS 3.0/EuroDOCSIS 3.0 specifications.

Supporting legacy cable networks and services, certified DOCSIS/EuroDOCSIS cable equipment increases performance, data rate and reliability for bandwidth-intensive data and Internet Protocol (IP) voice and video services, including very fast high-definition video-on-demand downloads/uploads for consumers and new commercial services for businesses.

ABOUT AVM

Founded in 1986 in Berlin, AVM is one of the top manufacturers of broadband devices in Europe. With more than 50 percent of the market share, it is the leading manufacturer in Germany, Europe’s largest market. AVM has 425 employees and generated a turnover of €200 million in the 2009 fiscal year. The Berlin-based communications specialist has received numerous awards for its innovative FRITZ!Box product range, developed and produced in Germany. FRITZ!Box enables fast, user-friendly DSL access, easy networking, inexpensive Internet telephony and versatile multimedia applications.

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: 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.

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.

CableLabs and DOCSIS, and EuroDOCSIS are trademarks of Cable Television Laboratories, Inc.

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