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DSP Group, Inc. Appoints Tality as an Approved System-On-Chip Design Center

Agreement Accelerates Adoption of DSP Group's Intellectual Property

SAN JOSE, Calif. — August 28, 2000 — Tality Corporation and DSP Group, Inc.(NASDAQ: DSPG) announced today that Tality™ has been appointed by DSP Group as an approved system-on-chip (SOC) design center. Tality, formerly the Electronic Design Services group of Cadence Design Systems, Inc., will soon be launched as a separate company. DSP Group is the worldwide leader in foundry-independent digital signal processor (DSP) cores. The agreement between the two companies is non-exclusive.

DSP Group offers licensable, high-performance, cost-effective, foundry-independent DSP cores for integration into SOC, mainly for communications products. DSP Group cores have been widely adopted by systems and semiconductor companies that want to be independent of foundry-specific IP. Foundry-independent IP enables customers to use optimum manufacturing technologies and cost-effective fabrication facilities for their designs.

"This relationship allows Tality to provide our licensees with a proven route for design-to-manufactured chips utilizing DSP Group's SmartCores family," said Issachar Ohana, vice president of sales at the Technology Licensing Division of DSP Group.

"Moreover, the ready availability of Tality SOC design expertise facilitates the path for companies that are contemplating adoption of our IP and require design assistance to do so."

"DSP Group's IP offering complements our ARM RISC core offering and strongly supports our position in communications SOC design," said Ajay Shingal, vice president and general manager of the Digital IC Design Group at Tality. "As an approved design center, we now have even greater access to DSP Group's new technology and IP, which we can integrate into SOC designs for our customers. Moreover, we perform physical design of DSP Group's SmartCores™ to produce hard cores that comply with the design rules of target foundries."

One product resulting from the relationship was the Aplio Trio, the world's first single-chip processor for Internet telephony, which contains two DSP Group OakDSPCores®. The chip was developed, from concept to chip, at Talitys primary SOC design center in Livingston, Scotland. The project utilized Talitys ARM/OakDSPCore SOC integration platform, a modular development vehicle that speeds design. In addition, Tality sourced, developed and ported the requisite embedded software.

About DSP Group, Inc.

DSP Group, Inc. (NASDAQ: DSPG) is a global leader in the development and marketing of high-performance, cost-effective, licensable digital signal processing cores. The company's family of DSP cores provides ideal solutions for low-power speech and audio processing, wireless communication technologies such as 3G, GSM and CDMA, broadband modems, multimedia, advanced telecommunication systems, disk drive controllers and many 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 ICs for full-featured integrated telephony products and applications, including digital spread spectrum wireless technologies. DSP Group, Inc. maintains an international presence with offices located around the globe. For more information visit DSP Groups Web site at www.dspg.com.

About Tality

Tality Corporation, formerly the Electronic Design Services group of Cadence Design Systems, Inc., will soon be launched as a separate company. With more than 1000 engineers located in 14 design sites worldwide, the organization is the world's largest independent provider of engineering services and intellectual property for the design of complex electronic systems and integrated circuits. Tality is headquartered at 555 River Oaks Parkway, Building #3, San Jose, California 95134.

For more information, please contact:

Jim Douglas
Tality Corporation
408-944-7955
jimd@cadence.com

Darryl Lloyd (for Tality)
Darryl Lloyd, Inc.
818-551-7360 ext 11
darry@dlloyd.com

Bat-Sheva Ovadia
VP Marketing and Business Development
Technology Licensing Division
DSP Group, Inc.
972-9-9529616 (Israel)
batsheva@dsp.co.il