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DSP Group Ranked 71st Among this Year's Best Small Companies By Forbes Magazine

SANTA CLARA, Calif. – November 6, 2000 – DSP Group, Inc. (NASDAQ: DSPG) announced that it has been named to Forbes Magazine's list of the 200 Best Small Companies in America.

DSP Group, a global leader in the development and marketing of high-performance, cost-effective, licensable digital signal processing cores ranked 71st overall and 4th in the telecom equipment industry.

"Our position on the Forbes 200 reflects our leading technology in a competitive market and demonstrates what we have achieved through the right combination of outstanding talent fostered by an innovative corporate culture," commented Eli Ayalon, DSP Group's Chairman and CEO.

DSP Group ranking highlights from the Forbes Magazine:

  • 12-month sales growth: 68% #31
  • Market value: $1,009 million #43*
  • 12-month return on equity: 30% #53
  • 12-month EPS growth: 69% #58

    *As of 9/27/00

To make the list Forbes considers companies with sales between $5 million and $350 million, which includes over 5,000 names. Companies also need to show five-year sales and earnings-per-share growth rates of at least 5% and net income of over $1 million during the past for quarters. But that's just the beginning.

Forbes also combed through more than 300 annual reports and 10-Qs, and tossed out dozens of companies that cleared their growth hurdles-but buried bad news in the footnotes to their consolidated financial statements.

About DSP Group, Inc.

DSP Group, Inc. is a global leader in the development and licensing of high-performance, cost-effective, digital signal processing cores used in a wide range of 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 offers a wide range of enabling, application specific ICs for full-featured integrated digital telephony, 900 MHz and 2.4 GHz wireless telephony and Voice Over broadband networks. DSP Group, Inc. maintains an international presence with offices located around the globe. Additional information is available on the World Wide Web at: http://www.dspg.com.

For more information, please contact Yaniv Arieli at (408) 986-4423