ParthusCeva Provides Guidance for the Year 2003

San Jose, CA - December 17, 2002 - ParthusCeva, Inc. (NASDAQ: PCVA; LSE: PCV), the industry's leading provider of licensable Digital Signal Processor (DSP) cores and solutions, is today providing guidance regarding anticipated results for the year 2003. This guidance takes into account the current outlook for ParthusCeva's targeted markets and reflects the effects of its recent corporate restructuring and product rationalization program.

ParthusCeva Corporate Restructuring and Product Rationalization
ParthusCeva has rationalized product lines to enhance strategic focus and to further reduce costs. Going forward our focus will be on three complimentary product offerings: (1) DSP cores, (2) application IP built around those cores and (3) design services to support the design-in of our IP. In addition, ParthusCeva has also realized considerable merger-related cost efficiencies since the combination of Parthus and Ceva was completed at the start of November. We anticipate that this restructuring will generate annual cost savings of between $14 million and $16 million (higher than previously anticipated), and will result in a one-time restructuring charge in the range of $5 million to $7 million to be taken in the current quarter. The company also notes that in the current quarter it will incur a one-time, non-cash charge for in-process research and development expenses arising as a result of the merger of Parthus and Ceva amounting to approximately $16 million.

2003 Guidance
Reflecting both the rationalization of its product lines and the ongoing weakness in the semiconductor sector, ParthusCeva anticipates that year 2003 revenues will be between $40 million and $46 million, with gross margins of approximately 85% and operating profit of between 10% and 15%. ParthusCeva further estimates that licensing and royalty revenues will comprise approximately 85% of total revenues for 2003.

ParthusCeva estimates that its operating expenses for 2003 on a US GAAP basis, including $1.2 million related to amortization of intangibles arising as a result of the merger of Parthus and Ceva, will be between $30 million and $32.5 million. These non-cash charges reflect the amortization of intangibles over 5 years. Excluding amortization of intangibles, ParthusCeva expects that its operating expenses for 2003 will be between $29 million and $31 million. The company estimates that its effective tax rate for 2003 will be approximately 25% of profits before tax. ParthusCeva expects to be cash flow positive in 2003.

Kevin Fielding, CEO of ParthusCeva, commented:
"As the leading licensor of DSP technology, I believe we are uniquely positioned to capture market share, which we expect will deliver long-term strong and sustainable growth. Underpinning this strategic strength is an improved financial position, which I believe will result in profitability in 2003. Our corporate rationalization program since the completion of the merger has enabled us to enhance the strategic focus of ParthusCeva and has at the same time delivered significant cost savings.

We are taking a conservative outlook for 2003, which we believe is prudent in light of the continuing weakness in the semiconductor market and limited visibility in our sector. Regardless of the timing of the industry recovery, we believe we have the technology and financial base in place to achieve our corporate goals of market leadership in DSP technology and profitable growth."

About ParthusCeva
Further information about ParthusCeva

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Safe Harbour Statement
This document contains "forward-looking statements", which are subject to certain risks and uncertainties that could cause actual results to differ materially from those stated. Any statements that are not statements of historical fact (including, without limitation, statements to the effect that the company or its management "believes," "expects," "anticipates," "plans" and similar expressions) should be considered forward-looking statements. Important factors that could cause actual results to differ from those indicated by such forward-looking statements include uncertainties relating to the ability of management to successfully integrate the operations of Parthus and Ceva, uncertainties relating to the acceptance of our DSP cores and semiconductor intellectual property offerings, continuing or worsening weakness in our markets and those of our customers, quarterly variations in our results, and other uncertainties that are discussed in the registration statement on Form S-1 and the most recent quarterly report on Form 10-Q of ParthusCeva, on file with the U.S. Securities and Exchange Commission.