Stepmind Licenses Ceva-Palm DSP Core for Cellular Handsets

GSM/GPRS/EDGE Baseband Chips For Next Generation Cellular Handsets Launched At Cannes 3GSM Show

San Jose, CA & Boulogne-Billancourt, France - February 18, 2004 - CEVA, Inc. (NASDAQ: CEVA, LSE: CVA), the leading licensor of Digital Signal Processor (DSP) cores and communication solutions to the semiconductor industry, and STEPMIND, a fabless solutions and components supplier, today announced that STEPMIND has licensed the CEVA-Palm DSP core to power their 2.5G (GSM/GPRS/EDGE) wireless baseband solution. STEPMIND's baseband processor is now available to customers and will be showcased at the 3GSM World Congress in Cannes.

STEPMIND's baseband processor chip delivers full Class 12 GSM/GPRS/EDGE connectivity, which enables high-speed multi-media services (MMS) including advanced speech and audio processing. The four-timeslot processor maximizes reception and transmission capabilities to reach data rates of up to 240 kbit/s, making the loading of MMS applications faster and easier to use. The programmable open architecture of the CEVA-Palm DSP ensures easy migration to new protocol standards and applications. When combined with STEPMIND's GSM/GPRS/EDGE RF Transceiver, STEPMIND is positioned to offer a complete reference design for EDGE based multimedia handsets.

STEPMIND's licensing of CEVA-Palm represents another success for CEVA's leading DSP cores in the wireless communications sector. CEVA is the number one licensor of DSP technology to the semiconductor industry.

"Our GSM/GPRS/EDGE baseband chip gives us a leading role in the EDGE market. Harnessing the power of the CEVA-Palm DSP, our chip enables handset manufacturers to integrate multimedia applications onto the baseband," commented Alain Jolivet, Chairman and CEO of STEPMIND. "As demand grows for next generation applications, STEPMIND and its solutions are well positioned to capture an increased share of the market."

"The high performance CEVA-Palm DSP enables STEPMIND to be one of the first in the market to offer combined EDGE and multimedia in a single chip," said Gideon Wertheizer, EVP of CEVA. "STEPMIND is now clearly well positioned to offer a full reference design for EDGE multimedia handsets and are another important design win for CEVA DSP cores."

About CEVA-Palm DSP

CEVA-Palm DSP is a family of fixed-point Digital Signal Processor cores whose members possess different data widths (16, 20, and 24 bits). Designed for applications requiring high throughput and flexibility, they are optimized for complex high-end telecommunications, wireless communications (GSM, CDMA, TDMA, EDGE, GPRS, 3G, etc.), multimedia (AAC, AC3, MPEG2, etc.), hi-fi audio implementations, consumer electronics, low-power, and high-speed digital signal processing applications.

CEVA-Palm DSP Cores possess a dual MAC and several operation units working in parallel. It is able to execute up to 18 operations per cycle and cross MAC signal paths allow a wide range of non-FIR oriented algorithms to be executed efficiently (e.g. Radix-2 Complex FFT Butterfly in two cycles).

About Stepmind

Founded in July 2000, STEPMIND is a fables solutions and components supplier, developing applications which require high performance and secured data links. STEPMIND develops and designs integrated circuits in the filed of RF transceivers and baseband according to the GSM/GPRS/EDGE, IEEE 802.11a,b,g and HiperLAN2 standards. This expanding design house will also market complete solutions, including software, for RF data link modules complying with IEEE 802.11a,b,g and HiperLAN2 wireless standards. www.stepmind.com

About CEVA, Inc.

For more information about CEVA, Inc, visit the about section of our website.

• 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 second quarter of 2003, filed with the U.S. Securities and Exchange Commission on August 12, 2003.