SANTA CLARA, Calif., Dec. 16 /PRNewswire-FirstCall/ -- DSP Group Inc. (Nasdaq: DSPG), a worldwide leader in developing and providing Total Telephony Solutions(TM) and short range wireless products, today announced that, in an effort to increase its European focus, it has opened a new sales and marketing office in Scotland.

Victor Koretsky, Vice President of Sales and Marketing, DSP Group stated, "I'm very pleased to welcome on board Ruth Wilson, as the European Sales and Marketing Director for DSP Group, and her experienced team. With the addition of Ms. Wilson and her team, DSP Group has acquired an important intellectual asset to enable the expansion of DSP Group's sales and marketing efforts in the European market, which will initially target DECT and emerging Bluetooth(TM) applications. I'm looking forward to seeing a proliferation of DSP Group's excellent product portfolio in Europe, which will be locally supported and led by Ms. Wilson's team."

The establishment of the Scotland office as a pan-European customer training and support center will enable DSP Group to present its product offerings to local European ODMs. DSP Group's short-range residential wireless products include Cordless telephony, PBX and Key Systems, various Bluetooth(TM) products, IP phones, Handsfree Car Kits and Multimedia Handheld devices.

Prior to joining DSPG, Ms. Wilson led the Bluetooth Business team within the Systems Group of Tality. Having an embedded software engineering and product realization background in a number of different market sectors, Ms. Wilson and her team will bring invaluable experience and expertise in realizing the DECT technology and Bluetooth products for both of DSP Group's European and US product markets.

About DSPG

DSP Group, Inc. is a semiconductor fabless company that is a leader in the short-range wireless market. By combining its DSP cores technology with advanced RF, communication technology and speech-processing algorithms, DSP Group is a world-wide leader in developing and providing Total Telephony Solutions(TM). These applications include digital 900MHz, 2.4GHz, DECT and Bluetooth for voice and data communication in residential, SOHO, SME, enterprise and automotive applications. DSP Group's advanced RF CMOS and communications technology provides the company with a clear path to a Phone-on-a-Chip(TM) solution. DSP Group also develops and markets embedded, integrated silicon/software solution for Voice-over-Digital-Subscriber Line (VoDSL), Voice-over-Internet-Protocol (VoIP) applications, and other Voice over Packet applications for Integrated Access Device (IAD) and IP Phone. More information on DSP Group is available at www.dspg.com.

This press release may contains statements that qualify as "forward-looking statements" under the Private Securities Litigation Reform Act of 1995, including statements made by Mr. Koretsky about the rapid proliferation of DSP Group's product portfolio in Europe, as well as DSP Group's long-term strategy and sales and marketing efforts with respect to the European market. 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, the acceptance by customers in the European market of DSP Group's products, DSP Group's ability to differentiate its products from those of its competitors in the European market and the general market demand for products that incorporate DSP Group's technology in the European market. These factors and other factors which may effect future operating results or DSP Group's stock price are discussed under "RISK FACTORS" in the Form 10-K for the year ended December 31, 2001 as well as other report, including Form 10-Qs, 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.

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SOURCE DSP Group Inc.

-0- 12/16/2002

/CONTACT: Yaniv Arieli, of DSP Group Inc., +1-408-986-4423, or yarieli@dspg.com/

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