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DSP Group Licenses the TeakDSPCore™ Family to Sony Corporation

SANTA CLARA, Calif., July 7 -- DSP Group, Inc. (Nasdaq: DSPG) today announced that it has licensed its TeakDSPCore Digital Signal Processor Core family to Sony Corporation [NYSE:SNE]. Sony plans to use the TeakDSPCore technology in highly integrated wireless communication solutions for consumer applications.

``DSP Group's TeakDSPCore, with its proven algorithms and software support, is a perfect complement to our wireless IC portfolio,'' said Yukio Fukuju, Vice President of Sony Corporation's Divisional Semiconductor Company. ``The Core will expand our ability to provide highly-integrated LSIs that offer greater performance and lower power consumption for a wide variety of next generation cellular phone applications.''

``We are proud to welcome Sony as the newest member to our family of DSP core licensees,'' said Zeev Bikowsky, Vice President of Core Technology at DSP Group. ``The TeakDSPCore brand name will reinforce the Sony Semiconductor Company's leadership role in producing highly integrated digital signal processing solutions.''

The licensing agreement includes two members of the TeakDSPCore family: The TeakLite(TM) and the Teak(TM). Each version is designed to provide effective solutions for different segments of the DSP market. TeakLite is a fully synthesizable, ASIC ``friendly,'' soft DSP core. It has an improved execution pipeline capable of up to 130 MIPS when implemented in a 0.25u CMOS process. Teak is an enhanced version of the TeakLite. It has superior architecture enhancements including dual multiply accumulate (MAC) units, double word memory read/write instructions and new instructions to improve DSP algorithms. The Teak delivers a maximum of 260 MIPS when implemented in a 0.25u CMOS process. The TeakDSPCore family is binary code compatible with the OakDSPCore. This eliminates the need to recompile or rewrite existing software modules for easy migration to the TeakDSPCore family.

DSP Group, Inc. is a leader in the development and marketing of high-performance, cost-effective digital signal processing cores, used in a wide range of applications for industries such as wireless communications, telephony and personal computer. By combining its DSP core technology with its advanced speech processing algorithms, DSP group also delivers a wide range of enabling application-specific DSPs. DSP Group is located in Santa Clara, California. 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.

NOTE: OakDSPCore is a registered trademark of DSP Group, Inc. TeakDSPCore, Teak and TeakLite are trademarks of DSP Group, Inc. All trademarks are the property of their respective owners.

Michael Cohen
Director of Investor Relations
ph: 408-986-4424
email: ir@dspg.com