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DSP Group and MEICOM Technologies Unveil an Intellectual Property Solution for the Emerging Digital-Camera Market

Santa Clara, Calif. and Herzelia, Israel – Oct. 1, 2001 -- DSP Group (NASDAQ: DSPG), the leading company in the development and licensing of high-performance, low-power, licensable Digital Signal Processors (DSPs), and MEICOM Technologies Ltd., a leading provider of image- and video-processing algorithms and software, today unveiled an Intellectual Property (IP) platform for digital cameras designed to provide high performance, four mega pixels per second, and high-quality image output. The new IP platform incorporates DSP Group's Teak® DSP core and MEICOM's innovative software implementation for digital cameras.

"We believe the Silicon Intellectual Property (SIP) market is evolving towards IP solution offerings rather than baseline IP, such as DSPs or Central Processing Units (CPUs)," said Bat-Sheva Ovadia, Vice President of Marketing and Business Development at DSP Group. "This new IP platform for digital cameras will advance the trend by providing OEMs and semiconductor companies targeting the emerging digital camera market with a comprehensive and flexible solution."

" The licensable IP solution is what DSP Group sees as a new approach in the digital-camera market. Whereas a typical digital-camera solution is hardware-driven, the licensable DSP Group-MEICOM solution has an emphasis on software," Ms. Ovadia explained. "The emphasis on software will provide certain advantages -- such as programmability, easy differentiation and flexibility -- over hardwired solutions."

She added, "Our customers will be able to differentiate their products that incorporate the new IP platform by adding audio, such as MP3 or ATRAC3, and voice recording, employ Bluetooth modems or TCP/IP, and other functionalities."

Miri Eitan, Chief Executive Officer of MEICOM Technologies, stated: "We believe our image compression and signal processing are an excellent fit with the Teak DSP Core's architecture. Together with the DSP Group offering, we provide superior visual quality at very low DSP-resource utilization, which results in a very low-power, low-cost solution."

The first phase of the new DSP Group-MEICOM IP solution is available now; the second phase is anticipated to be released in the first quarter of 2002. The solution has three components:

  1. A fully programmable, 100MHz Teak DSP core -- Representing the fourth generation of the DSP Group's SmartCores™ family, this is a low-power, dual MAC, 16-bit synthesizable DSP core. It is a fully synthesizable soft core, which is foundry- and library-independent.
  2. Comprehensive imaging software -- MEICOM's software solution includes image processing, image compression and system functions. The image compression includes among its features a high-quality JPEG implementation that is designed to take advantage of Teak DSP Core's architecture and create a very low-power consumption solution. The image processing includes auto focus and exposure, white balance, fault pixel and Gamma corrections, demosaic and many other processing algorithms. The system functions include various display options, communication support and storage support.
    The second phase of the IP solution will also include direct printing support and an MPEG4 codec. Already planned are versions that will offer features such as MEICOM's unique JPEG-2X compression - additional 2:1 compression of JPEG files without loss of visual quality.

  3. A software and hardware development board -- This board is designed to enable the integration of digital-camera software features, while at the same time allowing customers to develop and add features to differentiate and customize their products. With the development board, customers may use a run-time debugger through a JTAG interface. The new board is connected to a CCD camera and can interface with a variety of flash storage devices. It can also incorporate standard communication interfaces such as UART and infrared.

    About DSP Group

    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.

    About MEICOM Technologies Ltd.

    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, allow for the offering of 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. http://www.meicom.com

    This press release contains statements that may constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995, including statements made by Ms. Ovadia regarding the advantages of the new IP platform and the new emerging trend in the SIP market, as well as, statements made by Ms. Eitan regarding the advantages of combining DSP Group's and MEICOM's technologies. These statements are based on current expectations and the Company assumes no obligation to update this information. In addition, the events described in these forward-looking statements may not actually arise. The Company's expectations and perceptions about the advantages of the new IP platform and combining the two technologies, as well as, the Company's ability to take advantage of the perceived new trend in the SIP market could differ materially from actual results due to certain risk factors, including the market acceptance of the new IP platform by existing and potential customers, the timing of product deliveries, the Company's ability to further develop and enhance the new IP platform at competitive costs and in a timely manner, the realization of the perceived trend in the SIP market and the Company's ability to take advantage of such a trend, and the introduction of competing products and technologies. For a further discussion of such risk factors, see the information provided under the heading "Factors Affecting Future Operating Results" in our report on Form 10-Q for the quarter ended June 30, 2001, which has been filed with the Securities and Exchange Commission and is also available on our website (www.dspg.com) under Investor Relations.

    Teak and SmartCores are registered or non-registered trademarks of DSP Group, Inc. Other brands and products referenced herein are the trademarks or registered trademarks of their respective holders.

    Bat-Sheva Ovadia
    VP Marketing & Business Development
    Technology Licensing Division
    DSP Group, Inc.
    Tel: + 972-9-952-9616
    e-mail: batsheva@dsp.co.il

    Jack Adalist, MEICOM Technologies
    Manager, Marketing and Sales
    Tel: (972) 9 956 4535
    e-mail: jack@meicom.com