DSP Group Launches World's First Licensable DSP SubSystem for System-on-a-Chip Designs

SANTA CLARA, California; July 8, 2002 -- DSP Group, Inc., the world leader in the development and licensing of Digital Signal Processor (DSP) cores, today introduced XpertTeak™, a new approach to silicon Intellectual Property (IP). XpertTeak enhances DSP Group's product line of DSP Cores with a complete DSP core-based subsystem, developed entirely in-house, to meet semiconductor and OEM (Original Equipment Manufacturer) vendors' growing need for low power, low cost, System-on-a-Chip (SoC) solutions. XpertTeak, based upon the Teak® DSP Core, is now available for applications such as wireless baseband and application processing, digital cameras, consumer and professional audio, VoIP applications and other emerging markets.

To remain competitive, semiconductor manufacturers and systems OEMs must bring new products to market faster and more cost effectively than their competitors. Currently, companies that license DSP cores to drive the applications in their products often require fourteen to eighteen months of additional engineering time to design the various DSP-related peripherals, system interfaces and related hardware and software development tools that comprise a SoC design. DSP Group's XpertTeak changes this requirement by delivering a pre-integrated DSP subsystem, a megablock incorporating an embedded DSP Core and a complete set of system interfaces and significant peripheral components, together with a full set of software and hardware development tools. This combination benefits semiconductor manufacturers and systems OEMs by significantly lowering their cost of ownership as well as reducing their time to market.

XpertTeak is now available either as a licensable, fully synthesizable soft core, or as a general-purpose DSP chip that allows semiconductor manufacturers or system OEMs to immediately market a DSP-based chip and concurrently introduce an aggressive road map for highly integrated SoC designs. XpertTeak is software compatible with other SmartCores™ generations, enabling users to take advantage of legacy software and of the broad range of available software from our network of third parties.

"Our partners shared with us the complexity involved in designing a DSP subsystem in terms of design time and R&D resources," said Bat-Sheva Ovadia, vice president of marketing and business development at DSP Group. "XpertTeak, developed entirely within the company, is our response to our partners' needs and expectations; further shortening their time to market and lowering their cost of ownership, enabling them to reach the market sooner with genuine value added solutions. We intend to replicate this offering across both our current and future cores."

About XpertTeak™

XpertTeak is a complete licensable design for a low power, low cost programmable DSP-based System-on-a-Chip (SoC) for embedded application markets. As a licensable design, fully synthesizable and process independent, it can be further incorporated into highly integrated SoC designs. The XpertTeak is built on DSP Group's programmable dual MAC Teak DSP Core, the fourth generation of SmartCores family. XpertTeak also includes on-chip data and program memories, a high performance Direct Memory Access (DMA) controller, Buffered Time Division Multiplexing Port (BTDMP) and high throughput Host Port Interface, Serial IO (SIO) interface, General Purpose I/O (GPIO) interface, Timers, Interrupt Controller (ICU) and full support for run time debugger. An XpertTeak CHIP, implemented using 0.18 micron TSMC technology, is already available.

About DSP Group, Inc.

DSP Group, Inc., is a global leader in the development and marketing of high-performance, cost-effective, licensable digital signal processing (DSP) cores. The company's family of DSP cores provides ideal solutions for low-power, cost-effective applications, such as cellular, broadband communications, VoIP, multimedia, advanced telecommunications systems, disk-drive controllers, and other types of embedded-control applications. By combining its DSP core technologies with its proprietary, advanced speech-processing algorithms, DSP Group also delivers a wide range of enabling, application-specific integrated circuits (ICs) for full-featured, integrated-telephony products and applications, including spread spectrum wireless technologies. DSP Group maintains an international presence with offices located around the globe. More information about DSP Group is available from its Web site at www.dspg.com .

This press release contains statements that qualify as "forward-looking statements" under the Private Securities Litigation Reform Act of 1995, including statements made by Ms. Ovadia about the benefits and advantages of XpertTeak, as well as the Company's long-term strategy to develop and license more comprehensive, flexible solutions and application-optimized platforms. These forward-looking statements are based on current expectations and the Company assumes no obligation to update this information. In addition, the events described in these forward-looking statements may not actually arise. The Company's actual results could differ materially from those described in this press release as a result of various factors, including, the acceptance by customers of the XpertTeak, the Company's ability to develop and license more application-optimized platforms incorporating the Company's technology at cost-effective prices and to add innovative features that differentiate its products from those of its competitors and the general market demand for products that incorporate the Company's technology. These factors and other factors which may effect future operating results or our stock price are discussed under "RISK FACTORS" in our reports on form 10-K for the year ended December 31, 2001 and form 10-Q for the quarter ended March 31, 2002, both of which have been filed with the Securities and Exchange Commission and is also available on our Web site ( www.dspg.com ) under Investor Relations.

Teak is a registered trademark of DSP Group, Inc. SmartCores, XpertTeak are trademarks of DSP Group, Inc. Other brands and products referenced herein are the trademarks or registered trademarks of their respective holders.

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