ParthusCeva, Mentor Graphics and Accelerated Technology Announce Nucleus RTOS Support for Teak DSP Core

Nucleus RTOS Support for ParthusCeva's Teak Addresses Multi Media Processing Applications

San Jose, Calif - September 29, 2003 - ParthusCeva, Inc., [(Nasdaq: PCVA); (LSE: PCV)], the industry's leading licensor of Digital Signal Processor (DSP) cores and solutions, and Accelerated Technology®, the Embedded Systems Division of Mentor Graphics Corporation (Nasdaq: MENT), today announced a version of the Nucleus™ Real-Time Operating System (RTOS) for embedded developers using ParthusCeva's Teak® DSP processor. The combination of the Nucleus RTOS for the Teak DSP core addresses the high-performance, high-volume needs of the multimedia and cellular markets by providing developers with a scalable and robust software solution on which to build embedded applications.

The announcement between ParthusCeva and Accelerated Technology coincides with today's announcement of the release of a joint specification by ARM and ParthusCeva for an architecture covering the integration of ARM cores together with ParthusCeva DSP cores. This specification defines a standard method for connecting DSPs with an ARM core. The Nucleus RTOS supports both the ParthusCeva and ARM processor cores.

With the rapid development of digital media-processing, developers require a platform that can accommodate new technology yet maintain a small memory footprint. Accelerated Technology's Nucleus RTOS, a leading solution in the media-processing market, addresses these needs by allowing multiple applications running at differing frame rates to co-exist on a single DSP. By leveraging these benefits, Teak developers can quickly build their multi-processing application, enabling rapid time-to-market deployment.

"The availability of Nucleus software for ParthusCeva's DSP cores greatly adds to our Media and Communications algorithm portfolio by providing a robust multi-tasking RTOS platform on which ParthusCeva licensees' can develop full application solutions supporting video, audio and voice codecs (MPEG-4, H.263, AAC, MP3, WMA, FR, EFR, AMR) on a single DSP," said Eyal Ben-Avraham, vice president of applications and support, ParthusCeva, Inc.

"Nucleus software has been hugely successful in ARM-based devices like mobile handsets in the wireless market. The integration of the Nucleus RTOS with ParthusCeva's Teak DSP core enables us to provide the same RTOS API on both the ARM and the DSP in the same design," said Robert Day, director of marketing, Mentor Graphics Embedded Systems Division.

To address the needs of high-volume products, Accelerated Technology's source-code, no-royalty business model will allow developers to save money by not passing the costs of royalty fees on to their customers. A limited version (LV) of the Nucleus PLUS kernel for Teak is available for download from the Web site at www.acceleratedtechnology.com.

Pricing and Availability

Available now, licenses for the Nucleus RTOS start at U.S. $12,495. For more information, please contact Accelerated Technology at 800-468-6853. There are many hardware and software IP components integrated with Teak and Nucleus software that are available to greatly simplify integration effort of Teak licensees. Please contact ParthusCeva for more information at 408-514-2900.

About Teak

Teak is a 16-bit fixed-point general-purpose licensable DSP core. Teak is a dual MAC architecture with parallelism capabilities. Designed as a fully synthesizable soft core, it enables fast process and foundry migration. The low power Teak DSP design as well as its high performance makes it suitable to a wide variety of battery-powered portable applications, including speech and audio processing, multimedia and wireless communications (2/2.5 and 3G), high-speed modems, and various embedded control applications.

About Mentor Graphics

Mentor Graphics Corporation (Nasdaq: MENT) is a world leader in electronic hardware and software design solutions, providing products, consulting services and award-winning support for the world's most successful electronics and semiconductor companies. Established in 1981, the company reported revenues over the last 12 months of about $650 million and employs approximately 3,500 people worldwide. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777; Silicon Valley headquarters are located at 1001 Ridder Park Drive, San Jose, California 95131-2314. World Wide Web site: www.mentor.com.

Accelerated Technology, Embedded Systems Division of Mentor Graphics Corporation, is located in Mobile, Alabama with sales offices and distributors worldwide. By providing embedded systems developers with a focus on service, well-documented source code and industry-leading non-royalty-based Real-Time Operating Systems (RTOS) software, AT's RTOS software shortens time-to-market and provides a complete solution for engineers. For more information, please visit www.acceleratedtechnology.com or email us at info@acceleratedtechnology.com.

About ParthusCeva, Inc.

Further information about ParthusCeva

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Mentor Graphics and Accelerated Technology are registered trademarks and Nucleus is a trademark of Mentor Graphics Corporation. Teak is a registered trademark of ParthusCeva, Inc., XpertTeak and SmartCores are trademarks of ParthusCeva, Inc. All other company or product names are the registered trademarks or trademarks of their respective owners.

ParthusCeva Safe Harbor Statement

Various statements in this press release concerning ParthusCeva's future expectations, plans and prospects are "forward-looking statements", which are subject to certain risks and uncertainties that could cause actual results to differ materially from those stated. Any statements that are not statements of historical fact (including, without limitation, statements to the effect that the company or its management "believes", "expects", "anticipates", "plans" and similar expressions) should be considered forward-looking statements. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described, including the following:

• the industries in which we license our technology are experiencing a challenging period of slow growth that has negatively impacted and could continue to negatively impact our business and operating results;
• the markets in which we operate are highly competitive, and as a result we could experience a loss of sales, lower prices and lower revenue;
• our operating results fluctuate from quarter to quarter due to a variety of factors including our lengthy sales cycle, and are not a meaningful indicator for future performance
• we rely significantly on revenue derived from a limited number of licensees; and
• other risks discussed in "Management's Discussion and Analysis of Financial Condition and Results of Operations--Factors that Could Affect Our Operating Results," in our quarterly report on Form 10-Q for the first quarter of 2003, filed with the U.S. Securities and Exchange Commission on May 14, 2003.