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DSP Group Inc. Announces a New Advanced Speech Compression Technology--The Triple Rate Coder™

SANTA CLARA, Calif. Jan. 14 , 1997 -- DSP Group, Inc. (Nasdaq:DSPG) announced today the availability of its new Digital Telephone Answering Device chip, the D6571A, incorporating the Company's new TrueSpeech(R) Triple Rate Coder. The D6571A, with its Triple Rate Coder, represents a dramatic step forward in the quality of digital voice recording and other applications associated with speech technology.

Designs based on the Triple Rate Coder will enable the user to select three different message recording modes representing high, medium and low bit rate compression. This will allow a Digital Telephone Answering Device (DTAD) to automatically configure particular combinations of recording time and voice quality as required.

Unsurpassed voice quality (near PCM) is achieved with up to 11 minutes of recording time (per 4Mbit of Flash memory). Excellent voice quality, exceeding that of today's top speech compression algorithms, is available with up to 15 minutes of message recording time. Extended recording time of 25 minutes can be achieved with a voice quality exceeding that of DSP Group's current D6400 family of products. Each of these combinations result in a quality voice recording which not only surpasses today's standards but which is also expected to raise the consumer's voice quality expectations for the future.

Other functions embedded in the D6571A allow for real-time compression rate selection during recording and further re-compression of previously recorded messages in order to free memory for extended recording time. All these functions enable system designers to create smart Telephone Answering Devices that will combine superior voice quality with extended recording time. The flexibility of the Triple Rate Coder will inspire system designers to create new and unique devices using such leading edge technologies as provided by DSP Group Inc.

``We believe that the unique quality and flexibility of the Triple Rate Coder is a breakthrough in digital speech compression,'' said Gideon Wertheizer, Corporate VP Marketing of DSP Group Inc. ``We believe that the Triple Rate Coder will open up new applications and directions which could not otherwise be reached due to quality considerations,'' Wertheizer went on to say.

In addition to the new Triple Rate Coder, the D6571A integrates cutting edge features such as True Full Duplex SpeakerPhone(R), FlexiSpeech(TM), and Caller ID. This will ensure success of the D6571A in global markets, particularly in Europe where demand for high quality speech is required.

The D6571A is designed to provide a glueless interface in systems such as DECT (Digital European Cordless Telephone), PHS (Personal Handyphone System), and ISDN (Integrated Services Digital Network) chipsets.

DSP Group Inc. is a leader in the development and marketing of high-performance cost-effective digital signal processing cores, solutions for the consumer telephony and computer telephony. By combining three key technologies -- speech processing algorithms, telephony algorithms and digital signal processors (DSPs) -- the company has delivered a wide range of enabling application-specific DSPs to these markets. DSP Group is located in Santa Clara, California. For more information, contact Ganor at 408-986-4424, or via email ir@dspg.com.

NOTE: TrueSpeech, True Full Duplex Speakerphone, FlexiSpeech and Triple Rate Coder are registered trademarks of DSP Group, Inc. All other products or service names mentioned herein are trademarks of their respective owners.

NOTE: TrueSpeech, True Full Duplex Speakerphone, FlexiSpeech and Triple Rate Coder are registered trademarks of DSP Group, Inc. All other products or service names mentioned herein are trademarks of their respective owners. rueSpeech is a registered trademark of DSP Group, Inc.

Yizhar Ganor
Dir. Investor Relations
DSP Group, Inc.
(408) 986-4424
ir@dspg.com