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DSP Group and MEICOM Technologies Announce Availability of Fully Software-Based MPEG-4 Solution for PalmDSPCore
SANTA CLARA, Calif. and HERZELIA, Israel, Feb 18, 2002 /PRNewswire-FirstCall via COMTEX/ --

MPEG-4 on PalmDSPCore Reduces Time to Market for Companies Targeting The Emerging Mobile Multimedia Market With High Quality Wireless Streaming Capability and Low Power Consumption Real Time Demonstration at Embedded Systems Europe, Nuremberg Exhibition Center, Germany; 19-21 February 2002; Hall 12, Stand C15

-- DSP Group, Inc. (Nasdaq: DSPG), the world leader in the development and licensing of Digital Signal Processor (DSPs) cores, and MEICOM Technologies, a leading provider of image- and video-processing software, announced today the availability of a totally software-driven MPEG-4 codec for DSP Group's PalmDSPCore licensable DSP core. The solution will be demonstrated at Embedded Systems Europe, Nuremberg, Germany; 19-21 February 2002.

Delivering MPEG-4 functionality on the PalmDSPCore does not require any additional accelerators or extra gates that are usually associated with other MPEG-4 solutions. MEICOM's software, running on the PalmDSPCore, creates a low MIPS solution to process and stream high quality images, resulting in significantly lower power consumption. The flexibility and ease of integration that is afforded by DSP Group's licensable IP core architecture is a prime example of how an evolving standard such as MPEG-4 can benefit from a programmable environment. MPEG-4 is efficiently implemented on the PalmDSPCore architecture using features such as the Dual MAC (multiply-accumulate) capability, the split adder unit and advanced vector quanitzation support. The wide parallel and multi-parallel instruction-sets play a major role by enabling single cycle execution of different instructions simultaneously. The powerful instructions use variable instruction widths of only 16 or 32 bits, thereby contributing to a very high code density implementation of the MPEG-4 algorithm. This reduces the code memory size and consequently the overall die cost.

"Considering the importance of quality for streaming media, our solution for efficient processing of MPEG-4 data has been enhanced by utilizing DSP Group's powerful PalmDSPCore technology," says Miri Eitan, chief executive officer at MEICOM Technologies. "We look forward to addressing market demands for wireless video streaming together with DSP Group."

"Providing a totally software-based MPEG-4 codec that does not rely on hard-wired elements creates a new frontier in DSP technology," says Bat-Sheva Ovadia, vice president of Marketing and Business Development at DSP Group Technology Licensing Division. "We now provide companies who target the emerging mobile multimedia market with a complete MPEG-4 quality streaming video solution with significant reductions in power consumption for 2.5/3G cellular phones and mobile devices."

"An MPEG-4 solution that is implemented only in software is usually the most cost-effective solution and can be easily ported among different products without requiring algorithm accelerators," said Will Strauss, president of market watcher Forward Concepts. "I am very impressed by the incredibly low MIPS budget required on the PalmDSPCore for MPEG-4 implementation."

According to Forward Concepts, DSP Group's DSP cores are the dominant embedded DSPs in cellular, and were in approximately 15% to 18% of the 390 million cellular handsets shipped in 2001. Strauss estimates that the video camera-enabled cellphones will grow at a 266% annual rate from under 200 thousand units in 2001 to over 124 million in 2006, and MPEG-4 will be the most popular video standard.

PalmDSPCore is the 5th generation of DSP Group's licensable SmartCores family. It targets emerging applications such as third generation (3G) cellular handsets, broadband communication, Voice over IP gateways and consumer multimedia. The PalmDSPCore is a fully synthesizable "soft core." It is process-independent and is easily implemented using any ASIC, foundry and process libraries. PalmDSPCore is a low-power, dual MAC programmable DSP that combines advanced instruction level parallelism (ILP) techniques at low power consumption and high code density. It has already been licensed to five licensees.

About MEICOM Technologies

MEICOM Technologies Ltd. is an innovative developer of digital media solutions for embedded system applications. MEICOM is a leading player in the industry's move to "soft content" encoding and decoding for standard-compliant formats such as JPEG, MPEG-2 and MPEG-4. The low resource requirements of its CODEC solutions allow for implementation on a wide range of standard, off-the-shelf DSPs, while at the same time, providing high speed, extremely efficient encoding and decoding with high quality results. In addition, MEICOM offers a range of advanced digital compression products, which enable substantial improvements in multimedia compression for both raw and previously compressed data. MEICOM works closely with its customers to provide complete solutions based on its core products, bringing extensive digital media expertise to the development and implementation of application specific solutions. www.meicom.com

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 (DSP) cores. The company's family of DSP cores provides ideal solutions for low-power, cost-effective applications, such as cellular, broadband communications, VoIP, multimedia, advanced telecommunications systems, disk-drive controllers, and 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 integrated circuits (ICs) for full-featured, integrated-telephony products and applications, including spread spectrum wireless technologies. DSP Group maintains an international presence with offices located around the globe. More information about DSP Group is available from its Web site at http://www.dspg.com .

This press release contains statements that may constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995, including statements by Ms. Ovadia and Mr. Strauss regarding the benefits of delivering MPEG-4 functionality on the Palm DSPCore, statements by Ms. Eitan regarding the advantages of combining DSP Group's and MEICOM's technologies, and estimates derived from Mr. Strauss about the growth of camera-enabled cellphones and the popularity of MPEG-4. These statements are based on current expectations and DSP Group assumes no obligation to update this information. In addition, the events described in these forward-looking statements may not actually arise. DSP Group's expectations and perceptions about the advantages of a totally software-based MPEG-4 codec and Mr. Strauss' estimates about the growth of camera-enabled cellphones and the popularity of MPEG-4 could differ materially from actual results due to certain risk factors, including the market acceptance of the new technology by existing and potential customers, the timing of product deliveries, DSP Group's ability to further develop and enhance the new technology at competitive costs and in a timely manner, and the introduction of competing products and technologies. These factors and other factors which may effect future operating results or stock price of DSP Group are discussed under "RISK FACTORS" in the company's report on form 10-Q for the quarter ended September 30, 2001, which has been filed with the Securities and Exchange Commission and is also available on the company's Web site (www.dspg.com) under Investor Relations.

NOTE: PalmDSPCore is a registered trademark and SmartCores is a trademark of DSP Group, Inc. Other brands and products referenced herein are the trademarks or registered trademarks of their respective holders.

CONTACT: Bat-Sheva Ovadia, VP Marketing and Business Development, Technology Licensing Division of DSP Group, Inc., +972-9-952-9616, or batsheva@dsp.co.il; or Jack Adalist, VP Marketing and Sales of MEICOM Technologies Ltd., +972-9-956-4535, or info@meicom.com.

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SOURCE DSP Group, Inc.

CONTACT:          Bat-Sheva Ovadia, VP Marketing and Business Development,
                  Technology Licensing Division of DSP Group, Inc., +972-9-952-9616, or
                  batsheva@dsp.co.il; or Jack Adalist, VP Marketing and Sales of MEICOM
                  Technologies Ltd., +972-9-956-4535, or info@meicom.com
                  /Company News On-Call:
                  http://www.prnewswire.com/gh/cnoc/comp/112025.html 

URL:              http://www.meicom.com
                  http://www.dspg.com
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