CEVA Announces Launch and Licensing of Xpert-Blue Bluetooth Communications IP

San Jose, CA - January 26, 2004 - CEVA, Inc., (NASDAQ: CEVA;
LSE: CVA), the leading licensor of Digital Signal Processor (DSP) cores
and communication solutions to the semiconductor industry, today announced
the launch of Xpert-Blue, a fully-compliant Bluetooth™ Version 1.2
solution. Xpert-Blue has already been licensed by two leading wireless
manufacturers for use in a range of communication and digital multimedia

Bluetooth is one of the semiconductor industries fastest growing
communication technologies with an estimated 100 million Bluetooth enabled
devices forecast to ship in 2004. Version 1.2 of the Bluetooth standard
introduces new features to improve ease-of-use and reliability. Xpert-Blue
delivers the complete Bluetooth v1.2 solution, integrating baseband, DSP
processor, RAM, ROM and complete host controller software stack. New
licensees of Xpert-Blue benefit from rapid time-to-certification and
time-to-market for Bluetooth enabled products. Existing licensees of
CEVA's Bluetooth v1.1 IP can avail of a software upgrade to make their
solutions v1.2 compliant.

Xpert-Blue can be powered by either CEVA-Teak, CEVA-TeakLite or CEVA-X
DSP cores giving licensees the advantage of integrated DSP/Bluetooth
applications - an ideal solution for Bluetooth enabled voice, audio and
video products such as cellphones, wireless headsets, modems, gaming
consoles, digital camera's etc. Additional software solutions for CEVA
DSPs include MP3, AAC, AMR, MPEG4, VoIP, V.90, GPS and GSM/GPRS modems.
Xpert-Blue is also available as an ARM7 based drop-in macro.

"We are pleased to have sustained our leadership in Bluetooth
technology by being one of the first to have launched and licensed a fully
compliant Bluetooth Version 1.2 solution," said Martin Farnan, Wireless
Business Development Director of CEVA. "Xpert-Blue opens up a wealth of
product possibilities for our DSP licensees combining the advantages of
Bluetooth connectivity with digital processing in one complete solution."

Key features of Xpert-Blue include:

Multiple processor support
Multiple radio
Multiple codec support
Low gate
Low RAM usage
Low program code

About Bluetooth v1.2

With the recent adoption of the Bluetooth Specification Version 1.2 by
the Bluetooth Special Interest Group (SIG), the Bluetooth market is
expected to double to 100 million units in 2004, according to IMS
Research. The new specification introduces many new features that will
improve the ease-of-use and reliability of Bluetooth products, increasing
the demand for the technology. Bluetooth 1.2 features include;

Adaptive Frequency Hopping (AFH) designed to reduce
interference between Bluetooth devices and other wireless technologies,
such as 802.11b and 802.11g.
Enhanced Voice
Processing, providing an improved quality for voice transmissions over
Bluetooth in frequency noisy environments.
interoperability between Bluetooth devices, allowing for faster
compatibility with Bluetooth v1.1

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

*Bluetooth is a trademark owned by Bluetooth SIG, Inc. and
is used by CEVA under license.


Safe Harbor Statement

Various statements in this press release
concerning CEVA'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 third quarter of 2003, filed with
    the U.S. Securities and Exchange Commission on November 13, 2003.