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Fujitsu Licenses DSP Group's OakDSPCore

Enhances ability to address system LSI solutions for multimedia, communications and embedded-control applications

Santa Clara and San Jose, Calif., August 26, 1997 – Fujitsu Microelectronics, Inc. (FMI) and DSP Group, Inc. (NASDAQ: DSPG) today announced that Fujitsu Limited (TSE: 6702) has licensed DSP Group's OakDSPCore® digital signal processor (DSP) technology. Fujitsu will first deploy the OakDSPCore in Europe and North America to meet the rapidly growing need for "System LSI" solutions.

Fujitsu is a world leader in providing System LSI solutions with proven success in this market. Together with Fujitsu's mixed signal capability, the licensing of the OakDSPCore further enhances Fujitsu's System LSI offerings in applications where high-performance signal processing is required.

The OakDSPCore is a 16-bit, general-purpose, high-speed DSP core designed for speech and audio-processing, telecommunications, digital-cellular and embedded-control applications. The low-power, low-voltage product is the DSP Group's second-generation DSP core.

"Fujitsu is committed to the success of our customers who utilize our System LSI solutions," said Bami Bastani, executive vice president of FMI's Systems LSI Group. "OakDSPCore, with its well-established architecture and rich set of third-party system-development tools, is a very important part of our efforts to establish a complete library of system-level cores for System LSI applications," he added.

Fujitsu plans to provide the OakDSPCore in the latter part of this year. Fujitsu will emphasize System LSI solutions in multimedia and communication applications.

"It is a pleasure to work with a company with the stature and reputation of Fujitsu," said Irving Gold, vice president of marketing and sales, DSP core technology, DSP Group. "We are pleased that Fujitsu has joined our extensive family of DSP core licensees and that the company will make the core available in order to extend its digital signal processing capabilities," he added.

Fujitsu Microelectronics, Inc. designs, markets and manufactures a comprehensive portfolio of advanced semiconductor and electronic devices. FMI provides customers with sophisticated design capabilities, and access to one of the industry's largest and most experienced R&D and worldwide manufacturing capabilities. FMI is a leading supplier of ASICs, advanced packaging solutions, memory products, embedded and SPARC® processors, 3-D/multimedia products, wireless telecommunications products, networking ICs, high-speed I/O and flat-panel display products. For product information, call 1-800-866-8608 or visit FMI's web site at http://www.fujitsumicro.com .

DSP Group Inc. (NASDAQ:DSPG) 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. For more information, visit DSP Group's web site at http://www.dspg.com . 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.

OakDSPCore is a registered trademark of DSP Group, Inc. SPARC is a registered trademark of SPARC International Inc. Other company or product names mentioned may be trademarks or registered trademarks of their respective owners.

Irving Gold
Vice President
DSP Core Tech.
DSP Group, Inc.
(408) 986-4300

Tony Nelson
Fujitsu Microelectronics Limited
+44.0.161.230.6262
a.nelson@fml.co.uk

Yizhar Ganor
Dir., Investor Relations
DSP Group, Inc.
(408) 986-4424
ir@dspg.com

Emi Igarashi Fujitsu Microelectronics, Inc.
(408) 922-9104
emi.igrashi@fmi.fujitsu.com