Press Release Details

DSP Group Acquires Majority Holding in VoicePump, Inc.

Mar 28, 2000

Santa Clara, CA – March 28, 2000 – DSP Group, Inc. (Nasdaq: DSPG), announced today that it has acquired approximately 71% of the outstanding shares of VoicePump, Inc. located in Palo Alto, California.

VoicePump (formerly Analogical Systems) is a leading supplier of embedded DSP software for high-density Voice over DSL (VoDSL) and Voice over IP (VoIP) applications such as residential, carrier-class, and enterprise gateways.

DSP Group acquired approximately 71% of VoicePump for 261,400 shares of DSPG common stock and a cash investment of $5 Million, and has the right to acquire the remaining equity.

VoicePump's existing portfolio of products provides the underlying DSP software for voice, fax, and telephony signaling for VoDSL and VoIP. Its VoicePump-6000 software package is a fully H.323-compliant VoIP gateway with ITU-T speech codecs - G.729A/B, G.723.1A, G.728 - as well as VoicePump's proprietary multi-rate speech codec (AS-CELP). The VoicePump-6000 software also performs the associated signaling and G.165/G.168 echo cancellation and runs on a single TMS320C6000 DSP.

VoicePump plans to immediately begin porting its voice-over-packet algorithm suite to DSP Group's most advanced core, the PalmDSPCoreÒ . The resulting integrated solution is aimed to become the basis for a range of cost-effective, multi-protocol Application Specific Standard Products (ASSPs) for VoDSL applications.

The VoDSL product line to be developed will include ASSPs targeted at both ends of the connection: Carrier-class gateways and Integrated Access Devices (IADs).

Carrier-class gateways are located in the CLEC / ILEC switching center and serve as a bridge between the public switched telephone network and the packet DSL network.

IADs, which are located in each subscriber's premises, function as the voice gateway interface to the DSL network and provide the subscriber with the equivalent of up to 24 analog lines, together with services such as caller ID and call waiting.

"The acquisition of VoicePump is aimed to accelerate our penetration of and position us as a key player in the VoDSL and VoIP emerging markets," said Eli Ayalon, Chairman & CEO of DSP Group, Inc.

"VoicePump Technology Software will be now ported to our advanced DSP Core, the PalmDSPCore and will contribute to the development of a series of advanced and comprehensive products for the VoDSL and VoIP markets," added Mr. Ayalon.

Cole Erskine, President of VoicePump stated, "The acquisition of VoicePump by DSP Group, combines our gallery of Software Products for VoDSL and VoIP, with the excellent DSP core technology and the VLSI design capability of DSP Group. This combination gives us the opportunity to offer in the future a new generation of ASSPs, enabling a highly integrated, cost-effective VoDSL gateway solution, and accelerate the success of the company."

Effective immediately, DSP Group plans to expand the operations at VoicePump in its Palo Alto and Chicago facilities to expedite the development of the PalmDSPCore based VoDSL / VoIP product line.

Statements included in this press release regarding DSP Group's plans for future products and the impact of its acquisition of VoicePump, are forward looking statements reflecting DSP Groups's goals, and are not certain to be achieved. They are subject to risks and uncertainties including the risks inherent in integrating an acquisition and in developing new products.

About DSP Group, Inc.

DSP Group, Inc. is a global leader in the development and marketing of high-performance, cost-effective, licensable digital signal processing cores. The company's family of SmartCores™ DSPs provide ideal solutions for low-power speech and audio processing, wireless communication technologies such as 3G, GSM and CDMA, broadband modems, multimedia, advanced telecommunication systems, disk drive controllers and many other types of embedded control applications. By combining its DSP core technologies with its proprietary, advanced speech-processing algorithms – DSP Group also delivers a wide range of enabling, application specific ICs for full-featured integrated telephony products and applications, including digital spread spectrum wireless technologies. DSP Group, Inc. maintains an international presence with offices located around the globe. For more information visit DSP Group's web site at

About VoicePump, Inc.

VoicePump is a leader in embedded DSP software that enables efficient voiceband communications over DSL and IP networks. VoicePump's mission is to develop high-density embedded software solutions to address the convergence of real-time voice, data, fax and video over the Internet and other packet networks. VoicePump's VoIP and VoDSL applications provide the signal-processing infrastructure to enable telecommunications products and broadband digital appliances for corporate, small office and home markets. For more information, visit

PalmDSPCore is a registered trademarks of DSP Group, Inc. SmartCores is a trademark of DSP Group, Inc.

Other brands and products referenced herein are the trademarks or registered trademarks of their respective holders.

Michael Cohen
Director, Investor Relations
Tel: 408-986-4424