DSP Group Becomes a Licensee of SPIRIT DSP Low Bitrate Voice Codec for Digital Phone Baseband Processors and SoCs

MOSCOW -- June 25, 2008 -- SPIRIT DSP, the world's leading provider of voice and video software engines, today announced that DSP Group, through its acquisition of the former Cordless & VoIP terminals businesses of NXP Semiconductors, has become a licensee of SPIRIT's proprietary low bit-rate voice codec, VoStoC, for built-in voice quality on its digital phone baseband processors and SoC (System on a Chip) solutions.

DSP Group Inc. has a wide portfolio of SoC solutions for portable multimedia, short-range communication and VoIP applications. Last year, DSP Group, Inc. acquired the Cordless & VoIP terminals businesses from NXP to create a market leader in the cordless and VoIP residential telephony market. SPIRIT's VoStoC voice codec will be used inside DSP Group's digital phone baseband processors and SoCs for digital answering devices. SPIRIT's excellence in high-quality speech processing makes crystal clear voice possible across millions of communication devices.

``We have included the contract with SPIRIT into our acquisition of NXP's Cordless & VoIP terminals businesses. Next to our in-house solutions, SPIRIT's voice codec will help us to continue to meet our customers' requirements for solid state answering devices,'' said Joek de Haas, CTO-Intellectual Property at DSP Group Inc. ``We're pleased to license SPIRIT's low bit-rate voice codec, which provides high voice quality at the average bit rates from 2400 up to 12000 bps, adding to our extensive portfolio of voice processing.''

``We are pleased to extend our relationship with DSP Group to ensure built-in voice quality on their chips,'' said Slava Borilin, SPIRIT's VP of Products. ``DSP Group's focus on forming a comprehensive home communication network is synergistic with SPIRIT's mission to push the limits of technology by bringing the highest quality voice and video experience to the masses. This agreement represents another step forward for the semiconductor industry in bringing outstanding embedded multimedia solutions to telecom equipment.''

About DSPG

DSP Group Inc. is a fabless semiconductor company that develops and sells a wide portfolio of System on a chip solutions for portable multimedia (Speech, Music, Video and Still Image), short-range communication (EDCT, DECT, Bluetooth), and VoIP applications in Consumer Electronics and Telecommunication markets. DSP Group is a global leader in Total Telephony Solutions(r) for a wide range of Digital Cordless telephony, VoIP, IP Phones, IP Gateways and IADs, Digital Voice, Audio and Video Recorders, Portable Audio Players and Hands-Free Car Bluetooth Kits etc. http://www.dspg.com

About SPIRIT

SPIRIT DSP employs 140 professionals, and has been in the international software licensing business since 1992. A bootstrap company, SPIRIT has been profitable for 15 years. For the last 10 years, SPIRIT's focus has been on voice, audio and video communication software products. SPIRIT counts among its customers Adobe, Agere, ARM, Blizzard Entertainment, BT plc., Cisco, Compal, Ericsson, HP, HTC, Huawei, Korea Telecom, Kyocera, LG, Microsoft, NEC, Nortel Networks, NXP, Oracle, Plustek, Polycom, Quanta, Radvision, Reigncom, Samsung, Siemens, Texas Instruments, Tensilica, Toshiba, ZTE, and 200+ other communication OEMs and software vendors.

SPIRIT communication software is used in over 80 countries and powers more than 100 million voice channels. Today SPIRIT mobile OEM customers jointly exceed 60 percent of the worldwide smart-phone shipments. SeeStorm is a SPIRIT affiliate for synthetic video conferencing. For more information, visit http://www.spiritdsp.com.