Press Release Details

DSP Group Acquires Substantially All of the Assets of Bermai Inc.

Dec 8, 2004

SANTA CLARA, Calif., Dec. 8 /PRNewswire-FirstCall/ -- DSP Group, Inc. (Nasdaq: DSPG), a worldwide leader in developing and providing chipsets solutions for residential wireless connectivity, announced that it has acquired substantially all of the assets of Bermai Inc., a privately owned company formed to develop advanced WiFi technology based on 802.11 (a, b, g & e) standards. These developed technologies offer extended coverage and high Quality of Service ("QoS"). The assets purchased by DSP Group consisted mainly of intellectual property.

In line with the Company's strategy and focus to provide a complete short range residential wireless offering, DSP Group plans to further develop and offer chipsets for voice, data and video applications with high quality of service and improved ranges over WiFi networks.

In connection with the acquisition, former employees of Bermai Inc., who became non-executive officer employees of DSP Group following the acquisition, were granted employment inducement stock option grants to purchase a total of 239,000 shares of DSP Group common stock. These option grants have an exercise price of $22.67 per share and will vest over a period of four years. The option grants meet the "employment inducement award" provisions of NASDAQ's listing standards regarding stockholder approval of equity-based inducement incentive awards.

About DSP Group, Inc.

DSP Group, Inc. is a fabless semiconductor company, offering advanced chipsets solutions for a variety of applications. DSP Group is a world 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 (DSP's), portfolio of wireless communication protocols, including DECT, Bluetooth and WiFi, most advanced Radio Frequency CMOS and SiGe, as well as VoIP ICs, DSP Group is a world leader and a one-stop-shop for a wide range of applications. These applications include, but are not limited to: ISM band digital 900MHz, 2.4GHz, 5.8GHz telephony, European DECT (1.9GHz) telephony, Bluetooth systems for voice, data and video communication and are deployed in residential, SOHO, SME, enterprise and automotive applications. DSP Group ICs provide solutions for MP3 players, VoIP Phones, Gateways, and Integrated Access Devices (IAD's) and are widely used in Digital Voice Recorders (DVR's). More information about DSP Group is available at

SOURCE DSP Group, Inc.
CONTACT: Yaniv Arieli, President of U.S. Operations, Investor Relations, +1-408-986-4423, or
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