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XEMICS and DSP Group Unveil CoolTeakLite, Ultra Low-Power DSP Core Operating At 1.2 Volts

Two Companies' Combination of DSP Core and Low-Power Cell Library Technologies Offers Major Advantages Over All Other Low-Power Application IC Design Solutions

Santa-Clara, California / Neuchatel, Switzerland - February 22, 1999 - Combining their respective, state-of-the art technologies, Xemics and DSP Group, Inc. announced today the availability of their silicon-proven DSP Core operating at 1.2 Volts, with a ultra-low current consumption. The new development chip is based on DSP Group's 16-bit fixed-point TeakLiteÔ Core, which Xemics has licensed. Xemics will now offer the newly named "CoolTeakLiteÔ " as an embedded part in its low-power, low-voltage IC product line, while DSP Group will license CoolTeakLite in order for end-users to implement a full, low-power design solution for developing CoolTeakLite applications. DSP Group will license TeakLite architecture as an IP product in combination with the low-power cell library that will be licensed from Xemics.

The CoolTeakLite core represents a major advance in DSP core technology by reducing power consumption levels more than any other available market solution. According to Remy Pache, vice president of business development at Xemics, "After having successfully tested at 1.2V in a standard 0.25 micron CMOS process, we will now produce low-power, low-voltage audio processing and communications products around CoolTeakLite, as well as license our low-power cell library to equipment manufacturers."

"By combining the core competencies of both companies – DSP Group's low-power cores and Xemics' low-power cell libraries – the global DSP core marketplace is now provided with a superior solution for the development of low-power applications," added Issachar Ohana, Director, DSP Core Licensing at DSP Group.

TeakLite is a 16-bit fixed-point general-purpose DSP core. It is an ideal solution for low-power, speech and audio processing, wireless communication, modems, advanced telecommunication systems, disk drive controllers and various embedded control applications. The TeakLite DSP Core is binary code compatible with the industry standard OakDSPCoreÒ . In order to meet various application requirements, the core has an improved set of digital signal processing and general microprocessor functions. The core is designed in a single edge clocking system which allow the use of full or partial scan testing methodologies. The core supports Emulation, Debugging and Testing via JTAG.

About Xemics

Xemics designs and then delivers in volume mixed analog, digital and radiofrequency integrated circuits, mainly for battery-operated devices. In 1998, its first year of operation, the company had revenues of 19M Swiss francs (approx. 14M USD). Xemics' products are full custom circuits (ASIC) and the company has also begun to propose its own application specific products. Xemics is a fabless semiconductor company, subcontracting wafer manufacturing from major foundries around the world, and offering "One Stop Shop" services to its customers, from design to product delivery. In 1998, 40 different products, representing several million devices have been sold. Xemics markets are those for which high performance, ultra low-power and quite often miniaturization are key elements. These include: Hearing aids, watches, portable devices, utility meters, pressure and acceleration sensing systems, short distance wireless RF communication, GPS, and deeply embedded systems based on RISC and DSP cores. Xemics' web site is http://www.Xemics.ch

About DSP Group, Inc.

DSP Group, Inc. (NASDAQ: DSPG) is a global 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 computers. By combining its DSP core technology with advanced speech compression algorithms – the company also delivers a wide range of enabling application-specific DSPs. DSP Group's is located in Santa Clara, California and the company maintains an affiliate presence around the world. For more information visit DSP Group's website 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 trade mark of DSP Group.

TeakLite is a trademark of DSP Group.

All other trademarks are properties of their respective companies

DSP Group
Issachar Ohana
Director, DSP Core Licensing
Tel: 0972 9 952-9618
e-mail: issachar@dsp.co.il
web site: www.dspg.com XEMICS

Remy Pache
VP Business Development
Tel: +41 32 720 5235
e-mail: remy.pache@Xemics.ch
web site: www.Xemics.ch