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DSP Group, Inc. Third Quarter Earnings

SANTA CLARA, Calif., October 13, 2000 -- In response to the recent fluctuations in the market price of the common stock of DSP Group, Inc.(Nasdaq: DSPG), the company has indicated that it is not aware of any company specific factors that have resulted in such price fluctuations. The company believes that the market price of its common stock has been affected by market wide factors. The company announced that its management has full confidence in meeting its projected revenues and in meeting or exceeding its projected earnings per share (EPS) for the third quarter of the year 2000.

The company will conduct its quarterly conference call, as planned, following the third quarter's earnings release on October 24, 2000.

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 DSP cores provides ideal solutions for low-power, cost-driven applications, such as cellular, broadband communication, VoIP, 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 900 MHz and 2.4 GHz wireless technologies. DSP Group, Inc. maintains an international presence with offices located around the globe. Additional information about DSP Group, Inc. is available on the World Wide Web at: http://www.dspg.com.

Yaniv Arieli
Director, Investor Relations
Tel: (408) 986-4423
e-mail: yarieli@dspg.com