CEVA Announces Launch and Licensing of Xpert-Blue Bluetooth Communications IP

Fully-Compliant Bluetooth Specification v1.2 Licensed To Leading Wireless Manufacturers Xpert-Blue Can Be Powered By A Range Of CEVA DSPs

San Jose, CA - January 26, 2004 - CEVA, Inc., (NASDAQ: CEVA; LSE: CVA), the leading licensor of Digital Signal Processor (DSP) cores and communication solutions to the semiconductor industry, today announced the launch of Xpert-Blue, a fully-compliant Bluetoothâ„¢ Version 1.2 solution. Xpert-Blue has already been licensed by two leading wireless manufacturers for use in a range of communication and digital multimedia applications.

Bluetooth is one of the semiconductor industries fastest growing communication technologies with an estimated 100 million Bluetooth enabled devices forecast to ship in 2004. Version 1.2 of the Bluetooth standard introduces new features to improve ease-of-use and reliability. Xpert-Blue delivers the complete Bluetooth v1.2 solution, integrating baseband, DSP processor, RAM, ROM and complete host controller software stack. New licensees of Xpert-Blue benefit from rapid time-to-certification and time-to-market for Bluetooth enabled products. Existing licensees of CEVA's Bluetooth v1.1 IP can avail of a software upgrade to make their solutions v1.2 compliant.

Xpert-Blue can be powered by either CEVA-Teak, CEVA-TeakLite or CEVA-X DSP cores giving licensees the advantage of integrated DSP/Bluetooth applications - an ideal solution for Bluetooth enabled voice, audio and video products such as cellphones, wireless headsets, modems, gaming consoles, digital camera's etc. Additional software solutions for CEVA DSPs include MP3, AAC, AMR, MPEG4, VoIP, V.90, GPS and GSM/GPRS modems. Xpert-Blue is also available as an ARM7 based drop-in macro.

"We are pleased to have sustained our leadership in Bluetooth technology by being one of the first to have launched and licensed a fully compliant Bluetooth Version 1.2 solution," said Martin Farnan, Wireless Business Development Director of CEVA. "Xpert-Blue opens up a wealth of product possibilities for our DSP licensees combining the advantages of Bluetooth connectivity with digital processing in one complete solution."

Key features of Xpert-Blue include:

• Multiple processor support
  
• Multiple radio support
  
• Multiple codec support
  
• Low MIPS 
• Low gate count
  
• Low RAM usage 
• Low program code size

About Bluetooth v1.2

With the recent adoption of the Bluetooth Specification Version 1.2 by the Bluetooth Special Interest Group (SIG), the Bluetooth market is expected to double to 100 million units in 2004, according to IMS Research. The new specification introduces many new features that will improve the ease-of-use and reliability of Bluetooth products, increasing the demand for the technology. Bluetooth 1.2 features include;

Adaptive Frequency Hopping (AFH) designed to reduce interference between Bluetooth devices and other wireless technologies, such as 802.11b and 802.11g.
Enhanced Voice Processing, providing an improved quality for voice transmissions over Bluetooth in frequency noisy environments.
Improved interoperability between Bluetooth devices, allowing for faster connections.
Backward compatibility with Bluetooth v1.1

About CEVA, Inc.

For more information about CEVA, Inc, visit the about section of our website.

*Bluetooth is a trademark owned by Bluetooth SIG, Inc. and is used by CEVA under license.

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Safe Harbor Statement
Various statements in this press release concerning CEVA's future expectations, plans and prospects are "forward-looking statements", which are subject to certain risks and uncertainties that could cause actual results to differ materially from those stated. Any statements that are not statements of historical fact (including, without limitation, statements to the effect that the company or its management "believes", "expects", "anticipates", "plans" and similar expressions) should be considered forward-looking statements. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described, including the following:

• The industries in which we license our technology are experiencing a challenging period of slow growth that has negatively impacted and could continue to negatively impact our business and operating results;
• The markets in which we operate are highly competitive, and as a result we could experience a loss of sales, lower prices and lower revenue;
• Our operating results fluctuate from quarter to quarter due to a variety of factors including our lengthy sales cycle, and are not a meaningful indicator for future performance
• We rely significantly on revenue derived from a limited number of licensees; and
• Other risks discussed in "Management's Discussion and Analysis of Financial Condition and Results of Operations--Factors that Could Affect Our Operating Results," in our quarterly report on Form 10-Q for the third quarter of 2003, filed with the U.S. Securities and Exchange Commission on November 13, 2003.