VMTS and CEVA Partner for Development of Next-Generation Mobile Solutions

VMTS utilize high-performance, low-power CEVA-Teak™ DSP Core to power baseband for E-Vision GSM/GPRS/EDGE solution

PARIS, France and SAN JOSE, Calif. - February 13, 2006 - VMTS (www.vmts.com), provider of market-proven 2G/3G wireless solutions for mobile handset manufacturers, and CEVA Inc., (NASDAQ: CEVA; LSE: CVA), the leading licensor of digital signal processors (DSP) cores, multimedia, GPS and storage platforms to the semiconductor industry, announced today that VMTS has licensed the CEVA-Teak™ DSP Core for development of the high-performance, low-power GSM/GPRS/EDGE E-Vision solution for mobile handsets. VMTS will integrate the CEVA-Teak DSP to power the V2751 multimedia baseband for its state-of-the-art mobile silicon, protocol software and application solutions.

The VMTS E-Vision core chipset includes the latest VMTS EDGE V2751 Multimedia baseband chip, an RF transceiver and a power and audio management unit. The VMTS V2751 multimedia baseband brings reliable modem technology with high-performance multimedia features in one single chip. Its state-of-the-art protocol stacks support quad-band (850/900/1800/1900) operation for GSM/GPRS/EDGE and is dual-mode upgradeable with W-CDMA coprocessor. The CEVA-Teak DSP is ideally suited to baseband processing in handset solutions such as E-Vision, where high performance at minimal power consumption is a critical factor in the development of a successful baseband offering.

"Successful development of a cost-efficient mobile handset solution for today's highly competitive cell phone market requires high-performance multimedia features and a reliable modem to be integrated into a single chip, without sacrificing battery life," said Simon Tchedikian, head of program and business development, VMTS. "The CEVA-Teak DSP provides the optimal balance of power and performance for our V2751 multimedia baseband, consuming minimal power and tying up fewer resources in the system."

"We are pleased to announce the continuing partnership between CEVA and VMTS through their licensing of our CEVA-Teak DSP core, following their success with our legacy Oak® DSP" said Gideon Wertheizer, CEO of CEVA. "Our collaboration with VMTS is testimony to the value we place on our customer relationships and providing them with industry-leading technologies and excellent customer support. The semiconductor industry's continued adoption of our DSP technologies, especially for wireless handset applications, further underlines our position as the leading licensor of DSP cores."

VMTS' licensing of the CEVA-Teak demonstrates the ongoing success of the collaboration between the two companies. Previously, VMTS licensed the CEVA Oak® DSP Core and integrated it into their G-Vision GSM/GPRS baseband solution, which was successfully deployed by VK Mobile in its current GPRS handsets. The G-Vision solution provides a well-integrated and cost-effective solution for VK GPRS handsets.

"VMTS has provided so far a very mature and reliable modem technology for VK's latest GPRS line-up. We are now pleased to integrate VMTS' latest E-Vision solution into our next-generation GPRS and EDGE feature-rich handsets," said Joon-Ho Jung, CTO, VK Corporation. "Thanks to VMTS know-how and expertise in baseband and protocol stack development, we significantly reduced our mobile handset development cycles."

Illustrating the success of the G-Vision solution, VK Mobile has started development of new EDGE line-up based on VMTS E-Vision, incorporating the CEVA-Teak DSP. The E-Vision solution brings high performance and more multimedia features for the new generation of VK handsets, which are targeted at the European, Asia Pacific and Americas markets.

CEVA-Teak is a 16-bit fixed-point general-purpose DSP core. Its dual MAC architecture features high performance, high flexibility and throughput for complex Digital Signal Processing implementations. The core is designed for low-power, speech and audio processing, multimedia and wireless communications (GSM, CDMA, EDGE, 3G, etc.), high-speed modems, advanced telecommunication systems, and various embedded control applications. CEVA-Teak is designed with consideration for low-power uses to achieve the best possible performance with the lowest possible power consumption. It makes the core suitable to a wide variety of battery-powered portable applications.

The VMTS E-Vision EDGE solution provides integrated and adaptive technology for a wide range of mobile phones from mid-range to advanced high-end models. It integrates a 1.3M pixel camera interface and supports powerful multimedia features such as audio and video recording, playing and streaming (MPEG4, H.263, MP3, AAC, 64 polyphony, etc.). E-Vision hardware and Protocol Stack software have been developed with full dual-mode architecture in mind, ensuring the easiest and most efficient path toward low-power 3G evolution. E-Vision secures mobile handset manufacturers' development cycles with ideal reuse grade and faster time-to-market.

About VMTS

VMTS specializes in the development of GSM/GPRS, EDGE and WCDMA platforms and enables manufacturers to rapidly develop and produce leading mobile handsets for wireless markets. VMTS was founded in 2005 and is headquartered in Paris, France. The VMTS team has world leading expertise in semiconductor design, wireless protocol, wireless algorithm development and system integration. VMTS provides integrated and pre-certified reference designs, together with protocol and device software. Through seamless integration in wireless end-products, VMTS technology addresses its customers key requirements, which are product differentiation and improved time-to-market. More information on VMTS is available at http://www.vmts.com

About CEVA, Inc.

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