CEVA and ASTRI Form Partnership to Develop New-Generation Multimedia Solutions for Hong Kong and Greater China

ASTRI develops CEVA-TeakLite™ DSP-based, Low-power Portable Audio Solution

SAN JOSE, Calif. -- July 20, 2006 -- CEVA, Inc. (NASDAQ: CEVA)(LSE: CVA), the leading licensor of digital signal processor (DSP) cores, multimedia and storage platforms to the semiconductor industry, and Hong Kong Applied Science and Technology Research Institute Company Limited (ASTRI) jointly announced today the CEVA-TeakLite™ DSP and associated multimedia software chosen by ASTRI's IC Designs Group, which will be developed into a fully integrated, low power audio SoC platform solution. This is one of the projects driven by ASTRI IC Design Group's Multimedia Platform (MMP) initiative. The mission of MMP is to enable a platform-based solution with comprehensive video/audio codec Intellectual Properties (IP) for semiconductor companies in Hong Kong and Greater China. This solution is for developing a cost-effective SoC for a wide range of multimedia applications, such as portable multimedia players, IPTV, etc.

The CEVA-TeakLite's unique feature, which combines optimal performance and complete audio and imaging codec software, is the key factor for ASTRI's decision to licence the DSP. Using a single source for both the DSP and the software, the platform offers ASTRI the benefit of a highly optimized system that delivers power and performance advantages, and ease-of-integration -- all crucial factors in the successful development of a product for the highly competitive portable multimedia markets.

"By collaborating with a world-class IP company like CEVA, we are able to provide state-of-the-art technologies for manufacturers that compete at the highest level within the semiconductor industry," said Raymond Chiu, vice president and R&D director of ASTRI IC Designs Group. "CEVA's excellent track record in customer support and wealth of experience in partnering with companies that successfully bring products to market is the reason we partnered with them. We look forward to a successful long-term strategic partnership with CEVA."

"Partnering with ASTRI is of significant importance to our expansion strategy into the growing semiconductor industry in Greater China," said Gideon Wertheizer, CEO of CEVA. "ASTRI's relationship with local China-based fabless companies and proven track record in IP deployment provide an excellent platform from which we can deliver our CEVA-TeakLite DSP and multimedia software in highly optimized and affordable solutions to the portable multimedia markets."

About CEVA, Inc.

Headquartered in San Jose, Calif., CEVA is the leading licensor of digital signal processor (DSP) cores, multimedia and storage platforms to the semiconductor industry. CEVA licenses a family of programmable DSP cores, associated SoC system platforms and a portfolio of application platforms including multimedia, audio, Voice over Packet (VoP), Bluetooth, Serial Attached SCSI (SAS) and Serial ATA (SATA). In 2005, CEVA's IP was shipped in over 130 million devices. For more information, visit http://www.ceva-dsp.com/.

About ASTRI

Hong Kong Applied Science and Technology Research Institute Company Limited (ASTRI) was founded by the Government of the Hong Kong Special Administrative Region in 2001 to provide world-class innovative technologies, and build a new strategic framework for innovation and technology development. In 2006, ASTRI was appointed by the Innovation and Technology Commission to be the host of the HK R&D Center for Information and Communications Technologies to perform high-quality R&D for technology transfer to industry, develop needed technical human resources and act as a focal point that brings together industry and university R&D assets to enhance Hong Kong's technological competitiveness on a continuous basis. ASTRI's R&D activities focus on four closely interrelated technological domains -- IC Designs, Communications Technologies, Enterprise & Consumer Electronics, and Material & Packaging Technologies. ASTRI's objectives will be nothing short of establishing ASTRI as Greater China's best and the most strategic R&D center in the technology domain we work in, and become a truly strategic asset that would enable Hong Kong to capture values from competitive technologies for years to come. For more information about ASTRI, please visit http://www.astri.org/.