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ADSL Modem Algorithm Now Implemented on the OakDSPCore

Santa Clara, Calif., July 15, 1997 -- DSP Group, Inc. (NASDAQ: DSPG) today announced that an ADSL (Asymmetric Digital Subscriber Line) modem algorithm has been implemented on the OakDSPCore®.

The ADSL modem algorithm was implemented by Orckit Communications Ltd. (NASDAQ: ORCTF) for one of its products. A leading telecommunications company and provider of Digital Subscriber Line systems and modems, Orckit Communications Ltd. specializes in the design, manufacture and marketing of advanced high-speed digital modems for broadband transmission systems in the Local Loop and for fast access to the Internet.

ADSL is a transmission technique that allows multi-megabit data transfer on regular telephone wires. As implemented by Orckit, ADSL is based on Discrete Multi-Tone line code, which utilizes the FFT transform and adaptive filtering in the time and frequency domains. ADSL modems enable data transmissions on a single twisted copper wire of up to 8 Mbps in one direction, and up to 768 Kbps in the other direction.

"ADSL is an improved transmission technology that provides reliable transport of data/video services and POTS signals over a single copper facility," said Orckit President Izhak Tamir. "The OakDSPCore provides the processing power and flexibility to implement the ADSL algorithms on one resource," Mr. Tamir added.

"ADSL is clearly a high-growth market. We are delighted that Orckit Communications chose to base its ADSL products on the OakDSPCore," said Irving Gold, vice president, DSP Core Technologies for DSP Group, Inc. "With its ADSL product, Orckit Communications can provide its customers with efficient, state-of-the-art solutions."

The OakDSPCore is DSP Group's second generation, 16-bit general purpose digital signal processing (DSP) core designed for speech and audio processing, telecommunications, digital cellular, and embedded control applications. OakDSPCore features low-power, low-voltage and high speed, enabling custom, application-specific DSPs to be brought to market quickly.

Founded in 1987, DSP Group is a global leader in the development and marketing of high-performance, cost-effective digital signal processing (DSP) solutions for the consumer telephone, computer telephony and personal computer industries. By combining three key technologies--digital signal processors, speech compression algorithms and telephony algorithms--the company delivers a wide range of integrated circuit products and technologies to manufacturers of telephones, computers and consumer electronics. For more information, visit DSP Group's web site at http://www.dspg.com.

OakDSPCore is a registered trademark of DSP Group, Inc. All rights reserved worldwide

Irving Gold
Vice President
DSP Core Tech.
DSP Group, Inc.
(408) 986-4300

Yizhar Ganor
Director, Investor Relations
DSP Group, Inc.
(408) 986-4424
ir@dspg.com
Rebecca M. Steinberg
MarCom Manager
Orckit Communications, Ltd.
+972.3.694.5269
email: rebecca@orckit.com