Shipment Volumes of CEVA DSP-powered Cellular Baseband Processors Surpass Qualcomm, Texas Instruments and Mediatek

CEVA reaches historic milestone, world's #1 DSP architecture deployed in cellular baseband processors

MOUNTAIN VIEW, Calif., Jan. 31, 2011 -- CEVA, Inc. (Nasdaq: CEVA; LSE: CVA), the leading licensor of silicon intellectual property (SIP) platform solutions and DSP cores for the mobile handset, portable and consumer electronics markets, today announced that it is now the world's leading DSP architecture deployed in cellular baseband processors, with CEVA-powered cellular baseband processor shipment volumes surpassing Qualcomm, Texas Instruments and Mediatek. According to global research and consulting firm Strategy Analytics, the projected number of cellular baseband processors shipped for handset and non-handset applications in the third quarter of 2010 was 498 million units^, with CEVA DSP-powered cellular baseband shipments surpassing 178 million units, or 36% market share, in the same period.  CEVA recently reached another significant milestone, surpassing one billion units of CEVA-powered cellular baseband processors shipped worldwide.

Table 1: Strategy Analytics - Global Baseband Shipments in Unit terms*

Baseband Shipments (Millions of Units)	Second quarter 2010	Third quarter 2010 (P)
Qualcomm	95.1	107.8
Texas Instruments**	92.0	99.7
Mediatek	95.1	88.6
CEVA-powered basebands***	106	178

(P) – Provisional Data

* Strategy Analytics – Baseband Market Share Tracker, December 2010

** Texas Instruments (TI) data includes foundry production for Nokia

*** Source: CEVA, Inc.

With seven of the world's top eight handset OEMs shipping CEVA-powered baseband processors today, CEVA's DSP technology now powers one out of every three handsets worldwide. CEVA's market presence is set to continue to grow as the wireless industry shifts more designs to CEVA-powered wireless semiconductor customers, including Broadcom, Infineon, Intel, Samsung, Spreadtrum, ST-Ericsson and VIA Telecom.

In addition to wireless handsets, the deployment of cellular basebands in non-handset devices such as tablets, notebooks, eReaders and machine-to-machine applications has increased significantly in the past twelve months. Strategy Analytics believes 4.6+ billion connections (excluding handsets and smartphones) will likely be in place by 2020^^. By 2015 alone, Strategy Analytics predicts that there will be 7.7 billion active cellphone subscriptions^^^.

Gideon Wertheizer, CEO of CEVA said: "We are delighted with the continued expansion of our DSP technology in the cellular baseband processor space and our rise to become the number one DSP architecture deployed in this lucrative market. The addressable market for baseband processors is undergoing substantial growth with the emergence of a new wave of cellular connected devices such as tablets, eReaders and machine-to-machine solutions. We are already leveraging our core technologies and leadership in the handset space to expand into these new DSP markets and address this multi-billion unit opportunity."

CEVA's industry-leading DSP cores power many of the world's leading semiconductors today for a broad range of applications including cellular baseband, HD video, audio, voice-over-IP and more. Addressing next-generation 4G terminal and infrastructure markets, CEVA's latest generation DSPs have been specifically architected to overcome the stringent power consumption, time-to-market and cost constraints associated with developing high-performance multimode 2G/3G/4G solutions.

About CEVA, Inc.

CEVA is the world's leading licensor of silicon intellectual property (SIP) platform solutions and DSP cores for the mobile handset, portable and consumer electronics markets. CEVA's IP portfolio includes comprehensive technologies for cellular baseband (2G / 3G / 4G), multimedia, HD video and audio, voice over packet (VoP), Bluetooth, Serial Attached SCSI (SAS) and Serial ATA (SATA). In 2010, CEVA's IP was shipped in over 600 million devices, powering handsets from 7 out of the top 8 handset OEMs, including Nokia, Samsung, LG, Motorola, Sony Ericsson and ZTE. Today, more than one in every three handsets shipped worldwide is powered by a CEVA DSP core. For more information, visit www.ceva-dsp.com.

^Source: Strategy Analytics – Baseband Market Share Tracker, December 2010

^^Source: Strategy Analytics – Wireless Enterprise Strategies service, December 2010

^^^Source: Strategy Analytics – Wireless Operator Strategies service, January 201