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DSP Group Repurchases 1 Million Shares

SANTA CLARA, Calif., June 13, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- DSP Group, Inc. (Nasdaq: DSPG), a worldwide leader in developing and providing chip-set solutions for residential wireless connectivity, announced today that it had repurchased 976,000 shares of its Common Stock during the period between April 1, 2006 and June 12, 2006, at an average price of $25.58 per share, for an aggregate price of approximately $25 million.

After giving effect to the most recent repurchases, approximately 2.0 million shares of the Company's Common Stock remain authorized for repurchase under the current repurchase program approved by the Company's board of directors.

Moshe Zelnik, CFO of DSP Group, stated, "We have strong confidence in our future business prospects and in our ability to capitalize on new market opportunities. We believe that the buyback program that we have in place is a wise use of our cash and a good return on investment to our shareholders."

About DSP Group

DSP Group, Inc. is a fabless semiconductor company, offering advanced chip-set solutions for a variety of applications. DSP Group is a worldwide leader in the short-range wireless communication market, enabling home networking convergence for voice, video & data. By combining its in-house technologies of Digital Signal Processors (DSPs), portfolio of wireless communication protocols, including DECT, Bluetooth and Wi-Fi, most advanced Radio Frequency CMOS and SiGe, as well as VoIP ICs, DSP Group is a worldwide leader and a one-stop-shop for a wide range of applications. These applications include ISM band digital 900MHz, 2.4GHz and 5.8GHz telephony, European DECT (1.9GHz) telephony, Bluetooth systems for voice, data and video communication and deployment in residential, SOHO, SME, enterprise and automotive applications. DSP Group ICs provide solutions for MP3 players, VoIP Phones, Gateways, and Integrated Access Devices and are widely used in Digital Voice Recorders. More information about DSP Group is available at www.dspg.com.

Forward-Looking Statements

This press release may contain statements that qualify as "forward-looking statements" under the Private Securities Litigation Reform Act of 1995, including statements made by Mr. Zelnik about DSP Group's "strong confidence in DSP Group's future business prospects and its ability to capitalize on new market opportunities." These forward-looking statements are based on current expectations and DSP Group assumes no obligation to update this information. In addition, the events described in these forward-looking statements may not actually arise. DSP Group's actual results could differ materially from those described in this press release as a result of various factors, including slower than expected change in the nature of the home communications domain, unexpected delays in the introduction of new products, especially DECT products; failure to achieve broad market acceptance of existing and new products by existing and potential OEM customers; DSP Group's inability to add new customers and develop and produce new products at competitive costs and in a timely manner; decline or fluctuations in gross margins and the effect on revenues and profitability; and general market demand for products that incorporate DSP Group's technology in the market. These factors and other factors which may affect future operating results or DSP Group's stock price are discussed under "RISK FACTORS" in the Form 10-K for fiscal 2005 as well as other reports DSP Group has filed with the Securities and Exchange Commission and which are available on DSP Group's Web site (www.dspg.com) under Investor Relations.

For more information, please contact Ofer Elyakim, Director of Investor Relations, DSP Group Inc. at (408) 986-4421; or e-mail: ofere@dsp.co.il

SOURCE DSP Group, Inc.

Ofer Elyakim,
Director of Investor Relations of DSP Group Inc.,
1-408-986-4421, or ofere@dsp.co.il

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