San Jose, CA - March 16, 2005 - CEVA, Inc. (NASDAQ: CEVA), the
leading licensor of digital signal processor (DSP) cores and
communications solutions to the semiconductor industry, announced that it
would file tomorrow a Form 12b-25 with the Securities and Exchange
Commission (the "SEC") notifying the SEC that the CEVA Annual Report on
Form 10-K for the fiscal year ended December 31, 2004 could not be filed
within the prescribed time period.

During the quarter ended December 31, 2004, CEVA entered into a license
upgrade agreement with one of its existing customers who is developing
wireless and multimedia software solutions around the licensed CEVA DSP
core. CEVA recognized as revenue under this agreement $846,000 for the
quarter ended December 31, 2004. Separately, in January 2005, CEVA entered
into an engineering services agreement with the same party to develop a
suite of audio software to support the CEVA's multimedia solutions
licensing business.

In preparing CEVA's financial statements for the three months and year
ended December 31, 2004, management reviewed the license upgrade agreement
and services agreement and determined that the agreements were separable
and that each reflected the fair value of each element of these
agreements. CEVA's management also contemporaneously reviewed the facts
and circumstances of these agreements with CEVA's independent auditors.
Subsequently, in January, CEVA's Audit Committee reviewed with management
and with CEVA's independent auditors the revenue recognition treatment of
the license upgrade agreement for the quarter ended December 31, 2004.
Based on this review, CEVA recognized $846,000 of revenue related to this
agreement, which was reflected in the CEVA's operating results for its
fourth fiscal quarter and fiscal year ended December 31, 2004 set forth in
the press release previously furnished by the Registrant on a Form 8-K
dated February 2, 2005.

Subsequently, and in connection with CEVA's independent auditors final
review of the audited financial statements of CEVA to be included in its
Annual Report on Form 10-K for the fiscal year ended December 31, 2004,
CEVA's independent auditors informed CEVA on March 9, 2005 that they are
now further reviewing the revenue recognition treatment of this license
upgrade agreement, and we are currently discussing with our independent
auditors whether a portion or all of the revenue recognized in our 2004
fourth fiscal quarter related to this license upgrade agreement, of which
$775,000 was paid by year end, should be classified as deferred revenue as
at December 31, 2004, and recognized as revenue in future periods.

If all of the revenues are deferred to future periods, CEVA would
expect to report revenues for its fiscal year and fourth fiscal quarter
ended December 31, 2004 of $37.7 million and $9.2 million, respectively,
instead of the $38.5 million and $10.0 million previously set forth in its
press release furnished on CEVA's Form 8-K dated February 2, 2005. In this
instance, CEVA also would expect to report a decrease in net income of
$466,000 from the amounts previously disclosed from $2.1 million to $1.7
million for the full 2004 fiscal year and from $0.7 million to $0.2
million for the 2004 fourth fiscal quarter. This would result in a
decrease in CEVA's net income per share from $0.11 to $0.09 for the full
2004 fiscal year and from $0.03 to $0.01 for 2004 fourth fiscal quarter.

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