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OKI LICENSES DSP GROUP’S OakDSPCore®

Agreement will speed the production of LSI solutions for use in multimedia, communications and embedded – control applications

June 9, 1998, Tokyo, Japan and Santa Clara, CA, USA ---- Oki Electric Industry Co., Ltd. (Oki) and DSP Group, Inc. (NASDAQ: DSPG) today announced that Oki has acquired a license to use DSP Group's OakDSPCoreÒ digital signal processor (DSP) technology. By utilizing OakDSPCore, Oki will substantially reduce the time it takes to manufacture "System LSI" solutions for cellular applications, multimedia projects and embedded control applications. The company's plans are to make the new DSP technology available to its entire library of ASIC products.

Oki is a world leader in providing System LSI solutions with proven success in the marketplace. Together with Oki's mixed signal capability, the licensing of the OakDSPCore further enhances Oki'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.

"We believe OakDSPCore, with its low power and high performance capabilities, will become a key ingredient in the design of many Oki Silicon Platform Architecture (SPA) LSI solutions." said Yasuaki Ozawa, senior General Manager of LSI Division, Oki Electric Industry Co., Ltd.

"We welcome Oki as the newest member to our family of DSP core licensees," said Irving Gold, DSP's Vice President of Marketing and Sales, core technologies division. "We are pleased that Oki is making OakDSPCore available to help extend its digital signal processing capabilities and support customer needs."

Oki will market the product in the U.S. through Oki Semiconductor, which is a division of Oki America Inc., a U.S. subsidiary of Oki Electric. Founded in 1977, Oki Semiconductor provides a board line of communication-based integrated circuits for products in the networking, wired and wireless communications, telecommunications, graphics and multimedia, memory and consumer markets, as well as voice recognition, speech synthesis, microcontrollers and advanced communication devices for wired, wireless and fiber optic communications solutions.

Founded in 1881 as Japan's first telecommunications manufacture, Oki Electric Industry Co., Ltd. is a leader in the global marketplace. With more than 21,000 employees worldwide, Oki Electric manufactures and markets telecommunications systems, information systems, and electric devices. Oki's semiconductor manufacturing facilities are located in Japan, Thailand, and Portland, Oregon, and are all ISO9001 certified.

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. 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. Other company or product names mentioned may be trademarks or registered trademarks of their respective owners.

Andy Mans
GCI Group
Tel: +1-212-546-2059
Fax: +1-212-546-2550
Amaas@gcigroup.com

Tomiko Akiyama
Oki Electric Industry Co., LTD.
Tel: +81-3-3580-8950
Fax: +81-3-3581-5522
Akiyama886@ainet.oki.co.jp

Holly Burkhart/Dean Rodgers Walt & Co. Communications
Tel: +1-408-496-0900
Fax: +1-408-496-2978
hburkhart@walt.com
drodgers@walt.com

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

Irving Gold
Vice President Marketing & Sales
Core Technology Div.
DSP Group, Inc.
Tel: +1-408-986-4300
igold@dspg.com