DSP Group Inc Licenses ARM Core for Use in Wireless Residential Market Products

SANTA CLARA, Calif., and Cambridge, UK -- Jan. 6, 2003 -- DSP Group Inc., (Nasdaq: DSPG), a worldwide leader in developing and providing Total Telephony Solutions™ and short range wireless products, and ARM, [(LSE:ARM) (Nasdaq: ARMHY)], the industry's leading provider of 16/32-bit embedded RISC microprocessor solutions, today announced that DSP Group has licensed the ARM7TDMI® microprocessor core for use in its short range wireless residential line of products.

"In applying the ARM® technology to residential wireless market products, DSP Group has opted to use the industry-leading ARM7TDMI core and TeakLite DSP cores which bring together excellent power efficiency and operating performance to advanced telephony equipment," said Shlomo Rosenberg, Israeli country manager, ARM. "The ARM7TDMI core is the most widely licensed of all the ARM cores and provides system designers with the flexibility necessary to build embedded devices requiring small size, low power and high performance capabilities."

"Having an integrated system-on-a-chip solution using the low power and high-performance characteristics of the ARM7TDMI core and DSP Group's TeakLite DSP core make it a compelling product for our short range residential wireless products, including cordless telephony, PBX systems, Bluetooth products, IP phones, hands free car kits for the automotive, multimedia handheld devices and others," said Ofer Shneyour, CTO of DSP Group. "ARM has established itself as the leading designer for 32-bit RISC cores over a number of years and our customers will appreciate the benefits of its performance in our ARM Powered® end-products."

About DSPG
DSP Group, Inc. is a semiconductor fabless company that is a leader in the wireless residential market. By combining its DSP cores technology with advanced RF, communication technology and speech-processing algorithms, DSP Group is a worldwide leader in developing and providing Total Telephony Solutions™. These applications include digital 900MHz, 2.4GHz, DECT (1.9GHz), 5.8GHz and Bluetooth for residential 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™ 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

About ARM
ARM is the industry's leading provider of 16/32-bit embedded RISC microprocessor solutions. The company licenses its high-performance, low-cost, power-efficient RISC processors, peripherals and system-on-chip (SoC) designs to leading international electronics companies. ARM also provides comprehensive support required in developing a complete system. ARM's microprocessor cores are rapidly becoming a volume RISC standard in such markets as portable communications, hand-held computing, multimedia digital consumer and embedded solutions. More information on ARM is available at http://www.arm.com

ARM, ARM Powered and ARM7TDMI are registered trademarks of ARM Limited. All other brands or product names are the property of their respective holders. "ARM" is used to represent ARM Holdings plc (LSE: ARM and Nasdaq: ARMHY); its operating company ARM Limited; and the regional subsidiaries ARM INC.; ARM KK; ARM Korea Ltd.; ARM Taiwan; ARM France SAS; and ARM China

Total Telephony Solutions and Phone-on-a-Chip are trademarks of DSP Group, Inc.