Cellular3G Integrates CEVA-X DSP Core Into UMTS Baseband Chip for 3G Mobile Phone Applications

High performance CEVA-X1620(TM) DSP provides optimal solution to demands of implementing UMTS baseband technology

BARCELONA, Spain -- Feb. 12, 2007 -- 3GSM World Congress -- CEVA, Inc. (Nasdaq: CEVA; LSE: CVA), a leading licensor of innovative intellectual property (IP) platform solutions and DSP cores for wireless, consumer and multimedia applications, announced today the Company has entered into an agreement with Cellular3G, a designer of third-generation (3G) baseband chips and related IP, to integrate the high-performance CEVA-X1620 DSP into a new Universal Mobile Telecommunications System (UMTS) baseband processor targeting high-end mobile phone applications. Cellular3G and CEVA will feature a live demonstration of video-over-UMTS utilizing their technology in CEVA's booth (Stand 2F07, Hall 2) this week at the 3GSM World Congress.

Current data throughput rates supported by UMTS average 384Kbps, with peak channel rates up to 14.4Mbps. With these levels of data transmission, it was generally accepted that embedded processor companies would be forced to implement a large portion of the UMTS modem in hardware in order to maintain strong device performance and an acceptable level of power consumption. Cellular3G however, have developed a software-centric solution utilizing the CEVA-X1620 DSP. The solution leverages the powerful performance of the CEVA DSP, while utilizing a modest gate count to assist with repetitive computation requirements. This effectively eliminates the need for a dedicated RISC processor and results in a more efficient baseband solution for embedded processor companies requiring full UMTS functionality for their products.

Cellular3G's UMTS baseband chip design also provides existing CEVA customers with a valuable and verified IP migration path in the process of upgrading from existing GPRS/EDGE offerings to a multi-mode baseband chip supporting UMTS/EGPRS.

"The decision by CEVA and Cellular3G to embark on this joint effort will provide customers with a strong flexible UMTS solution, which will extend CEVA's already strong penetration in the burgeoning baseband processor market. As new standards and technologies evolve in this space, a flexible, full featured solution such as that offered by our DSP-based platforms will enable companies like Cellular3G to quickly and cost-effectively adapt their products to changing market requirements," stated Eyal Ben-Avraham, Vice President of Business Development at CEVA.

According to Menachem Kenan, CEO of Cellular3G, "Leveraging CEVA's high-performance DSP core technology and integrating it into our next-generation baseband chip provides us with a solution to the demanding challenges of developing a UMTS processor. Our fully functional solution exploits the ability of CEVA-X1620 to handle multiple, parallel computational tasks in a highly efficient way, eliminating the need for a RISC core and offers our customers cost, die size and time-to-market advantages for developing 3G products. This agreement provides licensees of CEVA and Cellular3G with all the necessary components to bring a high-end multimode baseband and multimedia solution to market."

Cellular3G's UMTS solution is featured in a demonstration of video-over-UMTS at CEVA's booth located at 2F07 in Hall 2 at 3GSM in Barcelona, Spain, 12-15 February 2007.

About Cellular3G, Inc.

Cellular3G, Inc. has developed UMTS baseband solutions which provide the users with low power consumption by utilizing optimum hardware and software techniques. Cellular3G's technology enables mobile units to maximize battery life while enabling very high speed data. Sold to customers as a chip or as a licensed IP package, Cellular3G has found a world-wide market.

Cellular3G was founded in 1999 with investment from Carphone Warehouse. For more information, visit http://www.cellular3g.com.

About CEVA, Inc.

Headquartered in San Jose, Calif., CEVA is a leading licensor of innovative intellectual property (IP) platform solutions and DSP cores for wireless, consumer and multimedia applications. CEVA's IP portfolio includes comprehensive platform solutions for multimedia, audio, voice over packet (VoP), Bluetooth, Serial Attached SCSI (SAS) and Serial ATA (SATA), and a wide range of programmable DSP cores and subsystems with different price/performance metrics serving multiple markets. In 2006, CEVA's IP was shipped in over 190 million devices. For more information, visit http://www.ceva-dsp.com.