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Prairiecomm Licenses Dsp Group's High-Performance Digital Signal Processing Core Technology

DSP Group's TeakLite® Technology Provides PrairieComm with a Platform for Next-Generation UMTS Baseband Processors

ROLLING MEADOWS, Ill. and SANTA CLARA, Calif.—October 2, 2001—PrairieComm, Inc., a leading provider of chipsets for wireless handsets from the world's leading consumer electronics manufacturers, and DSP Group Inc., (NASDAQ: DSPG), the leader in the development and licensing of high-performance, cost-effective digital signal processing (DSP) cores, today announced they have entered into a strategic DSP technology licensing agreement. Under the terms of the agreement, PrairieComm has licensed DSP Group's TeakLite technology as a platform for developing its next-generation solutions for wireless communications.

The licensing of TeakLite technology augments PrairieComm's extensive portfolio of wireless solutions, which includes chipsets, embedded software and licensed intellectual property for CDMA, TDMA, GSM and 3G UMTS.

"DSP Group's TeakLite technology gives PrairieComm a solid foundation for building the highly integrated chipsets for today's and tomorrow's 3G baseband architecture," said Ed Roney, PrairieComm's Vice President of Products and Systems. "The power efficiency and performance of TeakLite technology will significantly enhance our product designs for third-generation wireless chipsets."

The PrairieComm PCI5110, an advanced multi-mode integrated baseband processor that supports the UMTS standard for 3G cellular communications, uses TeakLite technology. Incorporating both WCDMA and GSM technologies, the PrairieComm PCI5110 also enables GPRS for high-bandwidth mobile communications. PrairieComm is currently providing samples of this chip to its customers.

"As the newest member of DSP Group's SmartCores™ adopters, PrairieComm will apply our enabling technology to a new generation of baseband solutions which are optimized for high-performance UMTS products," said Bat-Sheva Ovadia, DSP Group's Vice President of Marketing and Business Development. "Since our broad, licensable DSP core product line is compatible with PrairieComm's advanced low- power 2G/ 2.5G/3G offerings, PrairieComm will be able to use our cores together with its engineering talent, systems knowledge, and understanding of the market to make groundbreaking contributions to the drive to bring UMTS products to market."

TeakLite, the third generation of the SmartCores family, is a 16-bit fixed-point, general-purpose DSP core designed for low power, low voltage and high-speed digital processing applications. The core is designed as an ideal solution for speech and audio processing, wireless communication (GSM, CDMA, TDMA, EDGE, GPRS, 3G, etc.), modems, advanced telecommunication systems, disk-drive controllers and embedded control applications. Because the TeakLite DSP core is binary code compatible with the DSP Group's OakDSPCore®, it effectively eliminates the need to recompile or rewrite existing software modules during migration to the TeakDSPCore® family. The fully synthesizable, process-independent TeakLite is easily portable to any Application Specific Integrated Circuits (ASIC) library. The core can be used as an engine for DSP-based-ASICs, and is available as a DSP core in a standard-cell library applicable for custom chip design. As a result, the design of the core provides several levels of modularity in RAM, ROM and I/O, which allows efficient DSP-based ASIC development. Further, the core is designed in a single-edge clocking system, which allows the use of full or partial scan testing methodologies. The core also supports emulation, debugging and testing via JTAG.

About PrairieComm, Inc.

PrairieComm, Inc., based in Rolling Meadows, Illinois, develops and markets chipsets, embedded software and licensed intellectual property for CDMA, TDMA, GSM and 3G UMTS wireless technologies that give its customer-partners "The Power To Compete" in the worldwide digital cellular marketplace. PrairieComm is at the heart of wireless personal communications providing chipsets for mobile wireless products from the world's leading consumer electronics manufacturers. For more information about PrairieComm and its solutions, please visit the company's Web site at www.prairiecomm.com or call (847) 871-1800.

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 integrated circuits (ICs) for full-featured integrated-telephony products and applications, including spread spectrum wireless technologies. DSP Group maintains an international presence with offices located around the globe. Additional information about DSP Group is available on its Web site at www.dspg.com.

DSPG Safe-Harbor Statement

This press release contains statements that may qualify as "forward-looking statements" under the Private Securities Litigation Reform Act of 1995, including statements made by Mr. Roney about future design of PrairieComm third-generation chipsets, as well as, statements made by Ms. Ovadia about the Company's high-performance DSP cores and TeakLite technology, the advantages that TeakLite technology provide to the Company's existing and potential customers, and the success of the licensing arrangement with PrairieComm. These forward-looking statements are based on current expectations and the Company assumes no obligation to update this information. In addition, the events described in these forward-looking statements may not actually arise. The Company's expectations and perceptions about the new TeakLite core, the advantages that the TeakLite technology provide and the licensing arrangement with PrairieComm could differ materially from those described in this press release as a result of various factors, including, the ultimate compatibility of TeakLite technology and TeakLite core with the technologies and needs of PrairieComm, market acceptance by the Company's existing and potential customers, the timing of product deliveries, the Company's ability to further develop and enhance the TeakLite core to differentiate it from the Company's competitors at cost-effective prices and in a timely manner, the introduction of competing products and technology and the general market demand for products that incorporate the Company's DSP technology. For a further discussion of such factors, see the information provided under the heading "Factors Affecting Future Operating Results" in the Company's quarterly report on Form 10-Q for the quarter ended June 30, 2001, which was filed with the Securities and Exchange Commission on August 14, 2001 and is also available on the Company's Web site (www.dspg.com) under Investor Relations.

PrairieComm and PCI5110 are trademarks of PrairieComm, Inc.

TeakLite, OakDSPCore, TeakDSPCore are registered trademarks of DSP Group, Inc. SmartCores is a trademark of DSP Group. All other brand and product names are used for identification only and may be trademarks of their respective companies.

Bat-Sheva Ovadia Jeff Bennett
VP of Marketing & Business Development PrairieComm, Inc.
Technology Licensing Division Phone: (847) 871-1881
DSP Group e-mail: jeff.bennett@prairiecomm.com
Phone: +972-9-952-9616
Fax: +972-9-954-1234
e-mail: batsheva@dsp.co.il