DSP Group Unveils Next Generation DSP Architecture Family- Scalable, Extendible and Licensable

CedarDSPCore™ targeting Telecom, Communications and Home Entertainment Applications is the Sixth member of the SmartCores™ family from the DSP IP leader

SANTA CLARA, California; August 12, 2002 -- DSP Group, Inc. (NASDAQ: DSPG), the world leader in the development and licensing of Digital Signal Processor (DSP) cores, today unveiled CedarDSPCore™, a new licensable high performance and low power architecture. The CedarDSPCore is a scalable and extendible architecture with various DSP cores designs for different cost and performance metrics. It is targeted at a broad range of markets and applications such as Communication Terminals- e.g. 3G smartphones, 802.11a/b/g terminals and access points and broadband modems; Infrastructure- e.g. base-stations, media gateways and DSLAMS; and Home Entertainment- e.g. DVD recorders, PVRs and Set-top boxes.

"Once again, DSP Group is offering an exciting new high performance DSP architecture," commented Will Strauss, president of market research firm Forward Concepts. "The new scalable architecture allows the CedarDSPCore to be employed across a broad product line from mid-performance to very-high-performance applications while offering extendibility for product differentiation. Coming from a company with established leadership in DSP licensing, this powerful architecture will keep DSP Group as the team to beat."

DSP Group's CedarDSPCore presents a unique mix of features designed to benefit its licensees in three main areas: scalability, productivity and extendibility.

Scalable Performance at low energy consumption:

Performance scalability allows CedarDSPCore licensees to develop software-enabled products for infrastructure, wireless and multimedia emerging markets. Combining Very Long Instruction Word (VLIW) and Single Instruction Multiple Data (SIMD) technologies, the CedarDSPCore offers operation speed of up to 450Mhz (0.13µ worst case process in a synthesizable form) with scalable computation capability such as 2 to 8 Multiply-Accumulates (MACs) in a clustered model. Furthermore, the scalability runs deeper than MACs as each cluster includes several arithmetic and logical units and a large register file. Using four such clusters results in a high performance architecture that executes numerous parallel operations in a single cycle, up to a peak performance of 11 billion instructions per second. A scalable number of clusters with scalable memory bandwidth and different data native words create various core versions with a different mixture of performance-cost-energy consumption metrics.

Productivity:

Programming in high-level languages such as C or C++ and the use of compilers for optimization significantly shortens the software development process and reduces time to market. The CedarDSPCore architecture was conceptually designed for use with high-level programming language, employing various features that increase compiler utilization. In addition to the architecture design, the use of state-of-the-art compiler optimization techniques results in a powerful and highly efficient compiler for the CedarDSPCore.

The hardware implementation of CedarDSPCore, as in our previous SmartCores series, has been designed from the ground up as a fully synthesizable model, also known as a "soft core." This provides users a short turn-around cycle when migrating between existing processes and silicon foundries.
The CedarDSPCore is delivered with a complete and advanced set of software and hardware development tools.

Extendibility:

The growing adoption of industry standards for high volume applications such as wireless LAN (802.11a/b/g) or cellular communications (WCDMA, UMTS) creates a challenge for IC vendors as they attempt to differentiate their products and provide added value. The CedarDSPCore gives our licensees the flexibility to extend the architecture by adding user proprietary extension units. These extensions allow the user to embed value-added features while benefiting from an open, fully verified and widely used architecture.

"The CedarDSPCore architecture will broaden our market presence to new applications such as infrastructure, software-enabled wireless modems and home entertainment," said Bat Sheva Ovadia, VP Marketing and Business Development at DSP Group's Ceva Licensing Division. "Our significant installed base of TeakLite, Teak and PalmDSPCore licensees, as well as third party partners, will find the CedarDSPCore technology an enabler for exploring additional opportunities, while taking advantage of legacy developments and relationships they have developed with DSP Group over the years," added Ms. Ovadia.

"DSP Group is the world's largest licensor of DSP Cores with more than a decade of experience in successful licensing," said Eli Ayalon, Chairman and CEO of DSP Group. "The CedarDSPCore's compelling set of features and performance demonstrates our long-term commitment to our customers and to the DSP market," added Mr. Ayalon.

A report published in April 2002 by Gartner Dataquest on Worldwide Semiconductor Intellectual Property (SIP) Share Rankings awarded DSP Group Inc. No.1 position in 2001 for worldwide DSP Core IP revenues, with over 69 percent market share via sales of its SmartCores family of products.

About DSP Group, Inc.

DSP Group, Inc., is a global leader in the development and marketing of high-performance, cost-effective, licensable digital signal processing (DSP) cores. The company's family of DSP cores provides ideal solutions for low-power, cost-effective applications, such as cellular, broadband communications, VoIP, multimedia, advanced telecommunications systems, disk-drive controllers, and other types of embedded-control applications. By combining its DSP core technologies with its proprietary, advanced speech-processing algorithms, DSP Group also delivers a wide range of enabling, application-specific integrated circuits (ICs) for full-featured, integrated-telephony products and applications, including spread spectrum wireless technologies. DSP Group maintains an international presence with offices located around the globe. More information about DSP Group is available from its Web site at http://www.dspg.com.

This press release may contain statements that qualify as "forward-looking statements" under the Private Securities Litigation Reform Act of 1995, including statements made by Ms. Ovadia about the benefits and advantages of CedarDSPCore, including its ability to broaden the Company's market presence, as well as the Company's long-term strategy to develop and license more comprehensive, flexible solutions and application-optimized platforms. These forward-looking statements are based on current expectations and the Company assumes no obligation to update this information. In addition, the events described in these forward-looking statements may not actually arise. The Company's actual results could differ materially from those described in this press release as a result of various factors, including, the acceptance by customers of the CedarDSPCore, the Company's ability to develop and license more application-optimized platforms incorporating the Company's technology at cost-effective prices and to add innovative features that differentiate its products from those of its competitors and the general market demand for products that incorporate the Company's technology. These factors and other factors which may effect future operating results or our stock price are discussed under "RISK FACTORS" in our reports on form 10-K for the year ended December 31, 2001 and form 10-Q for the quarter ended March 31, 2002, both of which have been filed with the Securities and Exchange Commission and is also available on our Web site (www.dspg.com) under Investor Relations.

CedarDSPCore is a trademark of DSP Group, Inc. SmartCores, Teak, TeakLite and PalmDSPCore are registered trademarks of DSP Group, Inc. Other brands and products referenced herein are the trademarks or registered trademarks of their respective holders.