CEVA Announces Foundry Program Partnership With Tower Semiconductor

San Jose, CA - May 10, 2004 - CEVA, Inc., (NASDAQ: CVA; LSE:
CVA), the leading licensor of Digital Signal Processing (DSP) cores and
communications solutions to the semiconductor industry, today announced
that Tower Semiconductor Ltd. (NASDAQ: TSEM; TASE: TSEM), has joined
CEVA's foundry program and will offer CEVA's Xpert-Teak DSP platform to
its customers.

CEVA-X is a scalable VLIW-SIMD DSP architecture delivering breakthrough
performance, at low power consumption and at lowest cost-of-development
for DSP deployment. The CEVA-X1620, licensed to EoNex, is a dual
MAC 16-bit fixed point, fully synthesizable DSP core and the best
performing DSP on the market today. Independent benchmarks by Berkeley
Design Technology (BDTI) confirmed CEVA-X1620 as the industry's fastest
licensable DSP core. CEVA-X enables licensees to efficiently develop
software using high-level languages such C and C++ allowing re-usability
and fast time to market.

Xpert-Teak is a complete DSP system-on-chip (SoC) framework built
around CEVA's low-power, high-performance Teak DSP core and integrates the
complete range of system peripherals including memory, DMA and system
interfaces. Delivered as a pre-integrated DSP platform and proven on Tower
semiconductor's 0.18um process, Xpert-Teak provides Tower's customers with
significant cost and time-to-market advantages over the more traditional
approach of licensing a core without the associated sub-system peripherals
already integrated.

Tower's participation in CEVA's foundry program reflects the DSP
market's rapid growth. Analyst research firm Forward Concepts, forecast
that DSP market will grow 25% in 2004 over semiconductor revenues of $6.1
billion achieved in 2003. Tower's specialized processes for digital
imaging, audio/video, mixed signal and wireless communications along with
CEVA Xpert-Teak's proven performance in these market segments, provides
customers with a silicon proven DSP core and platform enabling rapid-ramp
to market for their products.

"With the exponential growth in DSP based solutions, we are pleased to
partner with CEVA, a world leader in licensable DSP technology," said
Doron Simon, Vice President Marketing and President of Tower Semiconductor
USA. "This relationship will allow Tower to expand our 0.18um, inherently
low leakage exhibiting process, with this addition of Xpert-Teak DSP
platform from CEVA."

"Our partnership with Tower enables both companies to broaden our
market by enabling us to offer best-in-class silicon proven DSP solutions
to the broad base of Tower's customers," said Chet Silvestri, president
and CEO of CEVA. "Teaming with a semiconductor foundry like Tower will
deepen our DSP penetration in cellular markets and expand into the rapidly
growing arena of digital multimedia applications."

About Tower Semiconductor Ltd. `

Tower Semiconductor Ltd. is a pure-play independent wafer foundry
established in 1993. The company manufactures integrated circuits with
geometries ranging from 1.0 to 0.18 microns; it also provides
complementary manufacturing services and design support. In addition to
digital CMOS process technology, Tower offers advanced non-volatile memory
solutions, mixed-signal and CMOS image-sensor technologies. To provide
world-class customer service, the company maintains two manufacturing
facilities: Fab 1 has process technologies from 1.0 to 0.35 microns and
can produce up to 16,000 150mm wafers per month. Fab 2 features
0.18-micron and below process technologies, including foundry-standard
technology, and will offer full production capacity of 33,000 200mm wafers
per month. The Tower Web site is located at http://www.towersemi.com/.

About CEVA, Inc.

Headquartered in San Jose, Calif., CEVA is the leading licensor of digital signal processor (DSP) cores, multimedia, GPS and storage platforms to the semiconductor industry. CEVA licenses a family of programmable DSP cores, associated SoC system platforms and a portfolio of application platforms including multimedia, audio, Voice over Packet (VoP), GPS location, Bluetooth, Serial Attached SCSI and Serial ATA (SATA). In 2005 CEVA's IP was shipped in over 115 million devices. CEVA was created through the merger of the DSP licensing division of DSP Group and Parthus Technologies. For more information, visit ceva-dsp.com.

A PDF copy of this press release is also available here