DSP Group Licenses Parthusceva's Bluetooth Technology Targeting Residential Wireless Systems

ParthusCeva BlueStream Base-Band and Software Stacks Licensed by Leading Supplier of Cordless Telephony Solutions

SANTA CLARA and SAN JOSE, CALIF -- March 3, 2003 -- DSP Group, Inc. (Nasdaq: DSPG) a worldwide leader in developing and providing Total Telephony Solutions™ and residential wireless products and ParthusCeva, Inc. (Nasdaq: PCVA; LSE: PCV), the leading licensor of digital signal processors (DSP) and application-specific platform Intellectual Property (IP) to the semiconductor industry, announced today they signed a licensing agreement to deploy ParthusCeva's BlueStream™ platform targeted at Bluetooth residential wireless products.

Leveraging ParthusCeva's BlueStream platform solution, DSP Group is developing a range of products based on BlueStream's short-range wireless communications including cordless telephony, PBX systems, IP phones, hands free car kits and multi-media handheld devices.

Bluetooth is rapidly becoming the de-facto standard for wireless communication between a range of electronic devices such as mobile phones, laptops, PCs, printers and handheld devices. By eliminating the need for cables between inter-connecting devices, individuals can share voice and data using fast and secure local wireless connections. Research Group In-Stat/MDR, in a December 2002 report, revealed that Bluetooth shipments hit 35 million by the end of 2002, with compound annual growth forecast at 118%
between 2001-2006
"Emerging Bluetooth technologies are a natural fit into home products. The integration of voice and data utilizing Bluetooth wireless connectivity simplifies usage of all electronics at the residence level, " said Ofer Shneyour, CTO, of DSP Group. "Adding Bluetooth to DSP Group's superior voice technology will provide an exceptional solution for new applications and markets that need an integrated system-on-a-chip solution. Licensing the Bluetooth technology from ParthusCeva will contribute to a risk-free and rapid time-to-market development cycle for our next generation of products," added Mr. Shneyour.

"We are delighted to extend our relationship with DSP Group and take Bluetooth technology to the broad cordless telephony and residential wireless markets," remarked Gerry Maguire, general manager of wireless technologies at ParthusCeva. "Bluetooth is a fast growing and lucrative wireless market. Deploying our BlueStream IP delivers the fastest time-to-market for companies targeting this high growth market."

About BlueStream
ParthusCeva BlueStream is a flexible, silicon proven platform designed for ease of integration in System-on-a-Chip subsystems. The BlueStream platform contains all required deliverables for OEMs, semiconductor, ASIC and fabless customers to rapidly design Bluetooth™ technology into their ASICs and ASSPs.

The ParthusCeva BlueStream delivers the complete Bluetooth Platform comprising:

• Baseband Controller in RTL
• Software Protocol Stacks - HCI & Embedded
• Extensive Profile Support

Baseband Controller IP
The BlueStream 1000 baseband controller IP solution provides the radio and lower link controller for the Bluetooth specification. The ParthusCeva Platform leads the industry in form factor, MIPS requirements and software ROM size. The ParthusCeva BB is targeted at 0.18mm CMOS. The proposed ParthusCeva partitioning is a digital 1Mbps interface with low-voltage signalling.

Protocol Software Architecture & Deliverables
The ParthusCeva protocol stack software has been written in ANSI C using object oriented techniques, and has been architected to be modular and easily extended. The software can support both L2CAP variants, with L2CAP either residing on a host above the HCI or below the HCI in a deeply embedded ASIC implementation. The stack extends all the way to the RFCOMM and SDP layer and comes with a fully documented API for applications developers. Again, with a baseband protocol stack requiring less than 40kbyte, the solution is optimised for integration.

About DSPG
DSP Group, Inc. is a semiconductor fabless company that is a leader in the residential wireless market. By combining its DSP cores technology with advanced RF, communication technology and speech-processing algorithms, DSP Group is a worldwide leader in developing and providing Total Telephony Solutions™. These applications include digital 900MHz, 2.4GHz, DECT (1.9GHz), 5.8GHz and Bluetooth for voice and data communication in residential, SOHO, SME, enterprise and automotive applications. DSP Group's advanced RF CMOS and communications technology provides the company with a clear path to a Phone-on-a-Chip™ solution. DSP Group also develops and markets embedded, integrated silicon/software solution for Voice-over-Digital-Subscriber Line (VoDSL), Voice-over-Internet-Protocol (VoIP) applications, and other Voice over Packet applications for Integrated Access Device (IAD) and IP Phone. More information about DSP Group is available at www.dspg.com

About ParthusCeva
Headquartered in San Jose, with principal offices in Dublin, Ireland and Herzelia, Israel, ParthusCeva (NASDAQ: PCVA; LSE: PCV) is a leading licensor of DSP and application-specific platform Intellectual Property (IP) to the semiconductor industry. ParthusCeva was created through the combination of Parthus Technologies plc, a leading provider of application-specific platform IP, and Ceva, formerly the licensing division of DSP Group, Inc. For more information, visit us at www.ParthusCeva.com.

Safe Harbor Statement - ParthusCeva
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 ParthusCeva 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 of ParthusCeva and the most recent quarterly report on Form 10-Q of ParthusCeva on file with the U.S. Securities and Exchange Commission.

Safe Harbor Statement - DSP Group
This press release may contains statements that qualify as "forward-looking statements" under the Private Securities Litigation Reform Act of 1995, including statements made by Mr. Shneyour about DSP Group's ability to leverage and integrate the Bluetooth technologies into DSP Group's existing technologies, as well as the contribution of the Bluetooth technologies to a risk-free and rapid time-to-market development cycle for DSP Group's next generation of products. These forward-looking statements are based on current expectations and DSP Group assumes no obligation to update this information. In addition, the events described in these forward-looking statements may not actually arise. DSP Group's actual results could differ materially from those described in this press release as a result of various factors, including, DSP Group's ability to successfully leverage and integrate the Bluetooth technologies with its existing technologies to develop new products and the acceptance of and the general demand for such new products. These factors and other factors which may effect future operating results or DSP Group's stock price are discussed under "RISK FACTORS" in the Form 10-K for the year ended December 31, 2001 as well as other report, including Form 10-Qs, DSP Group has filed with the Securities and Exchange Commission and which are available on DSP Group's Web site (www.dspg.com) under Investor Relations.

Total Telephony Solutions and Phone-on-a-Chip are trademarks of DSP Group, Inc. BlueStream is a trademark of ParthusCeva, Inc. Other trademarks are registered to their respective owners.