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VoicePump, A DSP Group Subsidiary, Announces Complete Solution for Cost-Effective Voice over Broadband Applications.

New VP100 Family Permits Four Packet Voice Ports onSingle Chip

PALO ALTO, Calif., October 16, 2000 — VoicePump, Inc., a subsidiary of DSP Group (NASDAQ: DSPG), today announced its first integrated silicon/software product offering: a family of chips for Voice over Digital Subscriber Line (VoDSL) and Voice over Internet Protocol (VoIP) applications.

VoicePump's VP100 series integrates DSP Group's TeakLite™ programmable digital signal processing (DSP) core with all requisite peripherals to perform four packet voice channels on a single processor: program/data memory, host processor interface, analog front end, analog-to-digital and digital-to-analog converters. The VP100 family also integrates the necessary DSP firmware to perform all the important DSP functions, including speech compression and decompression, echo cancellation and associated telephony signaling functions.

The VP100 family is ideally suited for use as the voiceband processing engine of VoDSL Integrated Access Devices (IADs) and VoIP gateways for small and medium enterprises, as well as residences.

"VoicePump's new VP100 family directly addresses the need for a 'black box' approach to DSP for Voice over Broadband applications, " said Will Strauss, president of the Tempe-based research firm Forward Concepts. "With its track record as a VoIP and VoDSL embedded software supplier, VoicePump is in an excellent position to tackle these emerging telecom markets."

Cost-Effectiveness Key to Widespread Deployment of Packet Voice Applications

Unlike general-purpose DSPs that have traditionally driven telecommunication applications, VoicePump's VP100 chips are significantly more efficient and effective for enabling VoDSL applications for multi-tenant offices, apartment buildings, and residential areas.

With VoicePump's VP100 DSPs, manufacturers can create VoDSL and VoIP applications optimized for the size and space constraints of offices, apartments and homes. Compared to general-purpose DSPs, the VP100 family offers a smaller and more cost-effective design, coupled with higher integration and ease of use.

Besides making it possible for service providers to deliver true "toll"-quality voice over DSL or IP, the VP100 also makes it easy to add incremental Custom Local Area Signaling Service (CLASS) features – such as call waiting – without the cumbersome compromises imposed by general-purpose DSPs. As a result, VoicePump expects that the VP100 will help service providers introduce high-quality VoDSL and VoIP services that can be differentiated and delivered to users for whom such services were prohibitively costly or difficult to deploy.

"Our VP100 family will provide DSL router manufacturers with a rapid migration path to the IAD marketplace by providing a cost-effective means of voice-enabling DSL routers with a true single-chip solution," said Cole Erskine, founder and chief technical officer of VoicePump. "By providing a complete DSP hardware/software solution for VoDSL and VoIP applications, we are eliminating the development time normally associated with a DSP-based solution and reducing manufacturers' time-to-market. Our strategic relationship with DSP Group provides access to their broad range of DSP core and mixed signal technology, permitting us to announce our first chip-level product only six months after our acquisition."

The initial members of the VP100 family are the VP120 and VP140, devices with pre-programmed Broadband Loop Emulation Services (BLES) IAD functionality suitable for two- and four-port applications, respectively. Another firmware release this year for the VP120/140 will perform Cable Modem IP Telephony. The product family will be expanded in the future to include an eight-port product, as well as a more highly integrated and enhanced processor core.

Price and Availability

Samples of the VP100 family devices are available now—in 100-pin plastic, quad-flat packages—directly from VoicePump or from its representatives. Production quantities will be available in the first quarter of 2001.

In volumes of 10,000, the VP140 is priced at $20 and the VP120 at $14. For more information, customers may contact Hugh MacPherson, (650) 323-3232, ext. 11; or hugh@voicepump.com.

About VoicePump

VoicePump, Inc., develops integrated silicon solutions for VoIP, VoDSL and other voice over packet applications that incorporate DSP Group's DSP cores and mixed-signal technology. VoicePump's products embed optimized, field-proven speech coding and telecom algorithms developed over their seven year history as a DSP software developer, Analogical Systems. These complete hardware/software solutions for packet voice processing are ideal for voice-gateway and customer-premise-equipment manufacturers in need of 'black-box' solutions to DSP. In March 2000, DSP Group, Inc., a developer and marketer of high-performance, cost-effective, licensable DSP cores, acquired 70 percent of VoicePump. The company is headquartered at 299 S. California Ave., Palo Alto, CA, 94306. Web site: www.voicepump.com.

About DSP Group

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 communications, 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 applications, including 900MHz/2.4GHz wireless technologies. DSP Group, Inc. maintains an international presence with offices located around the globe. Additional information about DSP Group, Inc. is available on the World Wide Web at: http://www.dspg.com