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DSP Group Launches 200 MHz Fully Synthesizable, Low-Power, TeakLite-Based Chip

High speed in a fully synthesizable core

Santa Clara, Calif. -- Sept. 28, 2001 - DSP Group (NASDAQ: DSPG), the leading company in the development of high-performance, low-power, licensable Digital Signal Processors (DSPs), today unveiled its 200MHz, fully synthesizable TeakLite®-based chip. The chip is integrated into an enhanced tool kit, thereby providing a 200 MHz development environment for a highly integrated, low-power System-on-a-Chip (SoC).

The speed of the new TeakLite core represents a breakthrough for synthesizable cores, believes Erez Barniv, Vice President of Research and Development at DSP Group's technology licensing division.

"Historically, synthesizable cores provided system engineers with a quick design, but they decreased the speed and increased the power consumption of an application," Mr. Barniv said. "However, our new TeakLite core is designed to offer system engineers high performance along with design flexibility and a time-to-market edge."

A fully synthesizable core, also known as a "soft core" design, offers significant flexibility because the design can be smoothly ported to any foundry, process-geometry and third-party cell library, according to Mr. Barniv. Moreover, the processes for porting, which are usually lengthy and involve tailor-made design processes, can be significantly shortened through the use of off-the-shelf, commercial Electronic Design Automation tools.

However, a fully synthesizable core places challenges mainly with respect to speed and power consumption, primarily because automatic processes have limited capability for controlling performance parameters. DSP Group believes it has overcome these constraints by modifying the DSP core and introducing a new design flow and methodology that are designed to offer full control over performance parameters while still maintaining design flexibility and a time-to-market edge that a synthesizable core design offers.

"With this new TeakLite core, we believe our licensees will be able to compete in the most performance-demanding applications," Mr. Barniv said. "We believe they will be able to bring to market a higher performance SoC while still maintaining the flexibility a soft core design can offer."

The TeakLite-based chip is manufactured using a TSMC Artysan library. The 0.18u physical design, packaged as a hard core, together with the new design flow, will be offered, along with support and training, to existing and future TeakLite licensees.

About TeakLite

TeakLite is a 16-bit, fixed-point, general-purpose DSP core designed for low-power, low-voltage and high-speed, digital-processing applications. The core is designed as an ideal solution for speech and audio processing, wireless communication, modems, advanced telecommunication systems, disk-drive controllers and embedded control applications. The fully synthesizable, process-independent TeakLite is easily portable to any ASIC library. TeakLite DSP core is binary code compatible with the DSP Group's OakDSPCore®.

About DSP Group, Inc.

DSP Group, Inc., is the 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-driven applications, such as cellular, broadband communication, VoIP, multimedia, advanced telecommunication 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. Additional information about DSP Group is available on its Web site at: http://www.dspg.com.

This press release contains statements that may qualify as "forward-looking statements" under the Private Securities Litigation Reform Act of 1995, including statements made by Mr. Barniv about the new TeakLite core and the advantages such core provides to the Company's existing and potential customers, as well as statements made about the timing of releases, expectations and strategies for the new TeakLite core. These forward-looking 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 new TeakLite core and the advantages it presents could differ materially from those described in this press release as a result of various factors, including, the market acceptance by the Company's existing and potential customers, the timing of product deliveries, the Company's ability to further develop and enhance the TeakLite core to differentiate it from the Companies' competitors at cost-effective prices and in a timely manner, the introduction of competing products and technologies and the general market demand for products that incorporate the Company's DSP technology. For a further discussion of such factors, see the information provided under the heading "Factors Affecting Future Operating Results" in our quarterly report on Form 10-Q for the quarter ended June 30, 2001, which was filed with the Securities and Exchange Commission on August 14, 2001 and is also available on our Web site (www.dspg.com) under Investor Relations.

TeakLite, OakDSPCore 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