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DSP Group Ranked No.1 in Worldwide Licensable DSP Core Market by Gartner Dataquest

SANTA CLARA, California, June 11, 2001 –– DSP Group, Inc. (NASDAQ: DSPG), a leading company in the development of high-performance, cost-effective, licensable Digital Signal Processor (DSP) cores, today announced that it has been named the worldwide leader with the largest market share of DSP Core Intellectual Property (IP), in a recent market statistics report published by Gartner Dataquest.

According to the Gartner Dataquest's Worldwide Semiconductor Intellectual Property (SIP) Share Rankings published May 29, 2001, DSP Group Inc. ranked 1st in both 1999 and 2000 in DSP Core IP revenues worldwide, with a market share of 55% of the licensed DSP core market. The SIP market is one of the newest and most talked about sectors of the overall semiconductors market, and is driven by the trend toward highly integrated System-on-a-Chip (SoC) designs. According to Gartner, the SIP market reached $690 million in 2000, up from $492 million in 1999.

"Years of development invested in our SmartCores™ family of DSP cores, combined with extensive support to our licensees have proven successful, as reflected in our position as the number one worldwide DSP core licensor," said Bat-Sheva Ovadia, VP Marketing and Business Development of the DSP Group's Technology Licensing Division. "We are encouraged to see more and more semiconductor companies as well as System OEMs that are adopting our DSP cores for emerging and high-volume applications, such as cellular handsets, xDSL modems, VoIP and consumer audio and video."

"Our analysis shows that licensable DSP cores is one of the fastest growing sectors of the IP market, having grown by 72% in 2000 vs. 1999" said Jim Tully, Chief Analyst at Gartner Dataquest. "DSP Group clearly dominates the market, holding 55% market share of worldwide DSP cores licenses, double that of the next company, and significantly ahead of other companies in the field."

About SmartCores

DSP Group's SmartCores family of low-power, fixed-point licensable DSP cores offer a range of performance, price and power consumption balances, addressing a wide range of applications, from low-end, high-volume applications, such as digital answering machines, hard disk controllers, low speed modems and Voice over IP terminals, to high performance applications such as third generation (3G) cellular communications, broadband modems, consumer multimedia and Voice over IP gateways.

SmartCores licensees can benefit from the technology in the following manners

  • Fully synthesizable soft core which allow porting to any process or foundry
  • Code compatible – allowing re-use of legacy code and significantly shorter time to market
  • Low power consumption
  • High code density - to reduce chip cost Cores offered at various performance levels - starting with single-MAC (OakDSPCore® and TeakLite®) architecture to Dual-MAC (Teak®) and Dual-MAC with Instruction Level Parallelism (PalmDSPCore®).

    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 digital cordless applications. 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

    Statements contained in this release may constitute forward-looking statements. These statements involve certain risks and uncertainties such as acceptance of the company's new products by existing OEM customers, potential customers and the company's ability continue to add licensees and to develop and produce its new products at competitive costs. These factors and other factors which may effect future operating results or our stock price are discussed under "FACTORS AFFECTING FUTURE OPERATING RESULTS' in our report on Form 10-Q for the quarter ended March 31, 2001, which has been filed with the Securities and Exchange Commission and is also available on our website (www.dspg.com) under Investor Relations.

    SmartCores, PalmDSPCore, Teak, TeakLite and OakDSPCore are registered or non-registered trademarks of DSP Group, Inc.

    Bat-Sheva Ovadia
    VP Marketing & Business Development
    Technology Licensing Division
    DSP Group, Inc.
    Tel: +972-9-952-9616
    e-mail: batsheva@dsp.co.il