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DSP Group and VLSI Technology Announce First Silicon of the Powerful PalmDSPCore Digital Signal Processor

Orlando, Florida, DSP World Fall Design Conference, November 3, 1999 - DSP Group, Inc. (NASDAQ: DSPG), a leader in intellectual property high-performance, cost-effective digital signal processors cores and VLSI Technology, a wholly owned subsidiary of Philips Semiconductors, announced today at DSP World ICSPAT the availability of the first silicon of the PalmDSPCore® - a highly parallel Digital Signal Processor core.

Eli Ayalon, President and CEO of DSP Group said "The PalmDSPCore heightens our technological leadership in the global DSP marketplace, allowing our licensees to successfully compete in the most advanced DSP applications' marketplace. VLSI Technology is the first PalmDSPCore licensee to show working silicon, which emphasizes our 'soft core' approach, where a design can be ported successfully to any process design and any manufacturing geometry."

"Both companies have worked hard to reach this milestone. Having delivered first pass functional success is a tribute to the tight working relationship between the engineering teams during this joint effort," stated Ray Slusarczyk, Director of Marketing for the Embedded Processing Group of VLSI Technology. "We are working with several customers in the communications segment who are in the early stages of product development, and are excited about the potential this offers."

Bat-Sheva Ovadia, Director of Marketing and Business Development, Technology Licensing Division of DSP Group added, "The PalmDSPCore is a highly parallel and modular Digital Signal Processor family of cores allowing different market segments to be addressed by the same architecture. We are very encouraged by the PalmDSPCore's acceptance in the communications market. Two additional major players in the communications arena have already chosen the PalmDSPCore for use as the heart of their applications."

PalmDSPCore is the fourth generation of DSP Group's licensable cores in the company's SmartCore™ family. Its target markets are third generation (3G) cellular handsets, broadband communication, Voice over IP gateways and consumer multimedia.

The PalmDSPCore is fully synthesizable - 'soft core', is process-independent and is easily implemented using any ASIC library. The PalmDSPCore is a fixed-point DSP and includes three family members - 16, 20 and 24-bit. The cores are designed to be used as engines for DSP-based Application Specific ICs (ASIC) and are available as DSP Cores in standard cell libraries, intended to be used as part of users' custom chip designs. As such, they provide several levels of modularity in RAM, ROM, I/O and registers allowing for efficient DSP-based ASIC development. The cores are designed in a single-edge clocking system allowing the use of full or partial scan testing methodologies.

The first silicon of PalmDSPCore is the 16-bit core version, mainly targeted for the communications market segment. It is implemented in low-power, 0.2u process of VLSI Technology. In addition to the DSP core, which was designed and implemented by DSP Group, the first PalmDSPCore silicon contains several other peripheral blocks, which were designed by both companies.

PalmDSPCore, a low-power consumption processor, with peak performance of 2700 MOPS (@150 MHz) has seven computation units working in parallel. It has three instruction-set categories of single, parallel and multi-parallel instructions which provides leading edge DSP performance, such as 2 cycles for complex FFT butterfly, while maintaining very condense program size. In addition to the powerful DSP processing capability, PalmDSPCore architecture was designed to support control type functions, which were otherwise executed by another CPU. The PalmDSPCore also has special mechanisms that allow multi-processing applications.

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 core products provide ideal solutions for low-power speech and audio processing, wireless communication technologies such as 3G, GSM and CDMA, high-speed modems, multimedia, advanced telecommunication systems, disk drive controllers and many other types of embedded control applications. DSP Group, Inc. maintains an international presence with offices located around the globe. For more information visit DSP Group's website at: http://www.dspg.com

This press release is also available through the company's News on Call fax service which can be reached at (800) 758-5804, company code 112025.

About VLSI Technology.

VLSI Technology, a subsidiary of Philips Semiconductors, designs and manufactures custom and semi-custom integrated circuits for leading firms in the wireless communications, networking, consumer digital entertainment and computing markets. VLSI's value proposition is based on full-service customer support, deep libraries of vertical market-focused IC intellectual property, unparalleled custom circuit design expertise enabled through the Velocity Rapid Silicon Prototyping design style, and one of the world's most flexible and efficient custom circuit manufacturing facilities in San Antonio, Texas. The Company is based in San Jose, California, with 1998 revenues from continuing operations of $547.8 million, and approximately 2,200 employees worldwide. Visit VLSI's homepage at www.vlsi.com

TeakDSPCore, TeakLite, Teak, SmartCores, PineDSPCore, OakDSPCore, and PalmDSPCore are trademarks or registered trademarks of DSP Group, Inc.

All other trade names and registration marks are the property of their respective holders.

VLSI Technology
Ray Slusarczyk
Marketing Director
Embedded Processing Group
VLSI Technology
Tel: 408-752-6300
email: ray.slusarczyk@vlsi.com

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