Atmel Licenses Industry-Leading CEVA-X DSP And System Platform To Power Next-Generation High Performance Storage Applications

Low-power, Highly-integrated CEVA-X™ SoC Platform Delivers Superior Performance Capabilities and Shortens Time-to-market for Atmel Next-generation Storage Applications

SAN JOSE, Calif. - October 19, 2004 - CEVA, Inc. (NASDAQ: CEVA; LSE: CVA), the leading licensor of digital signal processors (DSP) cores and communications solutions to the semiconductor industry, and Atmel Corporation (NASDAQ: ATML), a leading provider of system-level integration semiconductor solutions, today announced that Atmel has licensed the industry-leading CEVA-X1620™ DSP and CEVA-X System1100 Platform™ to power its range of next-generation storage applications. This latest licensing agreement extends Atmel's portfolio of CEVA intellectual property (IP), with Atmel having licensed previous generations of CEVA DSPs that are currently shipping in high volume.

Next generation storage applications demand high-performance processing to deliver maximum throughput data rates. Atmel's Storage System-on-Chip (SoC) products provide a broad and scaleable solution for customers designing storage products. Utilizing Atmel's solutions allows customers to focus on developing differentiated, value-added features for their storage products while reducing costs and time-to-market associated with developing the complete system in-house.

The CEVA-X System1100 provides Atmel with the ideal platform to develop high-performance, power-efficient storage solutions. Additionally, the CEVA-X1620's scalable DSP architecture offers Atmel a seamless migration path, reducing time-to-market and design costs for Atmel's future CEVA-X powered applications.

"Atmel's Storage Business Unit leverages the performance and programmability of CEVA-X to develop a range of storage products across multiple markets, including networking and consumer multimedia, on a single architecture. The programmability of CEVA-X also gives us an upgrade path to high-level storage designs for High Definition DVD/TV, H.263 and other applications," said Mehdi Bathaee, General Manager and Managing Director of Atmel's Network Storage Business Unit. "Our HPLC (High Performance Low Cost) architecture, based on the CEVA-X System Platform, allows us more flexibility in our designs at best in class performance, enabling us to offer differentiated solutions to our customers."

"Atmel's choice of CEVA-X for its storage applications program further extends our reach into the storage market and represents another important design win for CEVA-X DSP," said Chet Silvestri, President and CEO of CEVA. "We are very pleased to continue our partnership with Atmel and look forward to working together on new and innovative storage solutions."

About CEVA-X DSP Cores

CEVA-X delivers best-in-class performance, scalability and the lowest cost-of-development for DSP processor cores. CEVA-X1620 is the first implementation of the CEVA-X DSP family consisting of 16-bit data width and two MAC units. The CEVA-X1620's target markets include 3G cellular handsets and software radio, smart phones and PDAs, video and audio processing for mobile devices, VoIP gateways and broadband modems and storage and home entertainment (Digital TV, HDTV, PVR, DVD).

About CEVA-X System1100

CEVA-X System1100 is a low-cost platform optimized for wireless, storage and general purpose DSP solutions and includes the following main features:

• Sophisticated power management unit for dynamic low-power consumption
• Complete set of hardware peripherals extendible through Advanced Peripheral Bus (APB)
• Host controller connectivity through Advanced High Performance Bus (AHB) compliant bridges
• Two level memory architecture enabling shared memory between CEVA DSP and ARM cores, reducing system complexity and power consumption
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• Code replacement unit enabling on-the-fly firmware program bypasses

About CEVA, Inc.

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

About Atmel

Atmel is a worldwide leader in the design and manufacture of microcontrollers, advanced logic, mixed-signal, nonvolatile memory and radio frequency (RF) components. Leveraging one of the industry's broadest intellectual property (IP) portfolios, Atmel is able to provide the electronics industry with complete system solutions. Focused on consumer, industrial, security, communications, computing and automotive markets, Atmel ICs can be found Everywhere You Are(SM).