San Jose, CA - December 17, 2002 - ParthusCeva, Inc. (NASDAQ:
PCVA; LSE: PCV), the industry's leading provider of licensable Digital
Signal Processor (DSP) cores and solutions, is today providing guidance
regarding anticipated results for the year 2003. This guidance takes into
account the current outlook for ParthusCeva's targeted markets and
reflects the effects of its recent corporate restructuring and product
rationalization program.

ParthusCeva Corporate Restructuring and Product
Rationalization

ParthusCeva has rationalized product lines to enhance strategic focus
and to further reduce costs. Going forward our focus will be on three
complimentary product offerings: (1) DSP cores, (2) application IP built
around those cores and (3) design services to support the design-in of our
IP. In addition, ParthusCeva has also realized considerable merger-related
cost efficiencies since the combination of Parthus and Ceva was completed
at the start of November. We anticipate that this restructuring will
generate annual cost savings of between $14 million and $16 million
(higher than previously anticipated), and will result in a one-time
restructuring charge in the range of $5 million to $7 million to be taken
in the current quarter. The company also notes that in the current quarter
it will incur a one-time, non-cash charge for in-process research and
development expenses arising as a result of the merger of Parthus and Ceva
amounting to approximately $16 million.

2003 Guidance

Reflecting both the rationalization of its product lines and the
ongoing weakness in the semiconductor sector, ParthusCeva anticipates that
year 2003 revenues will be between $40 million and $46 million, with gross
margins of approximately 85% and operating profit of between 10% and 15%.
ParthusCeva further estimates that licensing and royalty revenues will
comprise approximately 85% of total revenues for 2003.

ParthusCeva estimates that its operating expenses for 2003 on a US GAAP
basis, including $1.2 million related to amortization of intangibles
arising as a result of the merger of Parthus and Ceva, will be between $30
million and $32.5 million. These non-cash charges reflect the amortization
of intangibles over 5 years. Excluding amortization of intangibles,
ParthusCeva expects that its operating expenses for 2003 will be between
$29 million and $31 million. The company estimates that its effective tax
rate for 2003 will be approximately 25% of profits before tax. ParthusCeva
expects to be cash flow positive in 2003.

Kevin Fielding, CEO of ParthusCeva, commented:

"As the leading licensor of DSP technology, I believe we are uniquely
positioned to capture market share, which we expect will deliver long-term
strong and sustainable growth. Underpinning this strategic strength is an
improved financial position, which I believe will result in profitability
in 2003. Our corporate rationalization program since the completion of the
merger has enabled us to enhance the strategic focus of ParthusCeva and
has at the same time delivered significant cost savings.

We are taking a conservative outlook for 2003, which we believe is
prudent in light of the continuing weakness in the semiconductor market
and limited visibility in our sector. Regardless of the timing of the
industry recovery, we believe we have the technology and financial base in
place to achieve our corporate goals of market leadership in DSP
technology and profitable growth."

About ParthusCeva

Further information about
ParthusCeva

A PDF copy of this press release is also available here

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Safe Harbour Statement

This document contains "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. Important factors that could cause
actual results to differ from those indicated by such forward-looking
statements include uncertainties relating to the ability of management to
successfully integrate the operations of Parthus and Ceva, uncertainties
relating to the acceptance of our DSP cores and semiconductor intellectual
property offerings, continuing or worsening weakness in our markets and
those of our customers, quarterly variations in our results, and other
uncertainties that are discussed in the registration statement on Form S-1
and the most recent quarterly report on Form 10-Q of ParthusCeva, on file
with the U.S. Securities and Exchange Commission.