DSP Group Unveils New System-on-a-Chip Worldwide Solution for Residential Communication Center

SANTA CLARA, Calif. -- Jan. 4, 2006 -- DSP Group, Inc. (Nasdaq: DSPG), a worldwide leader in residential wireless solutions, announced today the availability of a system-on-a-chip solution that turns the cordless phone application into a residential communication center. The new solution provides in-house cordless coverage for voice, data and video, supporting any physical connectivity to the residence.

The new innovative solution provides:

• Integrated cordless voice and video monitoring over 2.4GHz, 5.8GHz and DECT standards for applications such as baby monitoring and home security;
• Cordless connectivity to PC-based telephony such as Skype, GoogleTalk, MSN Messenger and others using a cordless USB Dongle device;
• Fixed-Mobile Convergence (FMC) of the cordless system with cellular phones, enabling receipt and placement of cellular calls using cordless handsets;
• Multi-handset cordless Voice over IP with all telephony features on a single device.

Victor Koretsky, Corporate Vice President of Sales and Marketing, DSP Group, stated: "DSP Group's complete portfolio of DECT, 2.4GHz, 5.8GHz, and cordless Voice over IP solutions on a single integrated device, as well as our complete reference designs including, among many other features, cordless monitoring camera, Wavetable Polyphonic MIDI synthesizer and MP3 playback provide our leading customers with a unique position to roll out new innovative product lines for markets worldwide."

Inon Beracha, Chief Executive Officer, DSP Group, stated: "Our innovative system-on-a-chip solution is the heart of the residential communication center. It delivers in house cordless coverage for all major voice and visual applications, and supports various access connections to the home, while maintaining the same user experience of a regular cordless phone."

DSP Group and its customers will present the new line of products at the CES in Las Vegas on January 5-8, 2006.

About DSP Group, Inc.

DSP Group, Inc. is a fabless semiconductor company, offering advanced chip-set solutions for a variety of applications. DSP Group is a worldwide leader in the short-range wireless communication market, enabling home networking convergence for voice, video & data. By combining its in-house technologies of Digital Signal Processors (DSPs), portfolio of wireless communication protocols, including DECT, Bluetooth and Wi-Fi, most advanced Radio Frequency CMOS and SiGe, as well as VoIP ICs, DSP Group is a worldwide leader and a one-stop-shop for a wide range of applications. These applications include ISM band digital 900MHz, 2.4GHz and 5.8GHz telephony, European DECT (1.9GHz) telephony, Bluetooth systems for voice, data and video communication and deployment in residential, SOHO, SME, enterprise and automotive applications. DSP Group ICs provide solutions for MP3 players, VoIP Phones, Gateways, and Integrated Access Devices and are widely used in Digital Voice Recorders. More information about DSP Group is available at www.dspg.com.