Santa Clara, California, February 20, 2001 – DSP
Group, Inc. (NASDAQ: DSPG), a leading developer and marketer of
high-performance, cost-effective, programmable digital signal processing
cores, today announced that Oki Electric Industry Co., Ltd. (OKI) has licensed the Teak® DSP Core from DSP Group's
line of cores for use in the design of high-performance DSP
Systems-on-a-Chip (SoCs), in the areas of audio and wireless applications.
OKI had previously licensed, and is currently developing applications with
DSP Group's SmartCores™ family, OakDSPCore® and TeakLite®. The two
companies are continuing their close cooperation in the development of
advanced DSP applications.

OKI is a world leader in providing system LSI solutions
with proven success in the marketplace. In addition to basing production
of logic and system LSIs around its Silicon Platform Architecture (SPA)
strategy, OKI developed the timesaving µPLAT® integrated platform for
system LSI devices. These platforms provide a total system development
environment for voice and telecommunications applications. Combined with
OKI's mixed signal capability, the licensing of the Teak DSP core, in
addition to the previously licensed OakDSPCore and TeakLite, further
enhances OKI's system LSI offerings in applications where high-performance
signal processing is required.

"We decided to adopt the Teak core because of its unique
combination of high performance, for example its dual-MAC architecture,
low-power and backward software compatibility," said Mr. Tetsuzo
Taniguchi, VP Silicon Solutions Company, OKI Electric Industry Co., Ltd.
"The Teak core can also be easily implemented and used with our existing
software and hardware," he added.

The Teak DSP Core is a high-performance, 16-bit,
fixed-point DSP core using a Dual-MAC (multiply-accumulate) architecture
that enables a peak performance of 420 MIPS. The Teak core has a parallel
instruction capability and performs high-speed interrupts and fast context
switching. It also includes an extended program addressing space and new
instructions that accelerate the performance of various DSP algorithms.
Teak is known for its code compactness, and has an excellent program
memory utilization that reduces the die cost.

"We are very pleased with OKI's decision to continue to
adopt our technology for its products," said Ms. Bat-Sheva Ovadia, DSP
Group's VP of Marketing and Business Development of the Technology
Licensing Division. She added, "We are confident that this long-term
relationship will strengthen the competitive edge of both companies."

The Teak core is a "soft core," a fully
synthesizable core that easily ports into any library or process
technology. Teak core is fully code-compatible with DSP Group's OakDSPCore
and TeakLite, previously licensed by OKI. It offers a natural migration
path for designs done using previous generation cores, but which require a
higher performance.

About OKI Electric Industry
Co.

Founded more than a century ago in 1881, OKI Electric
Industry Co., Ltd. is Japan's first telecommunications manufacturer
headquartered in Tokyo, Japan. With more than 20,000 employees worldwide,
OKI Electric provides customers with top-notch products and technologies
for telecommunication systems, information systems and electronic devices
through its corporate slogan "OKI, Network Solutions for Global Society."
All of OKI's manufacturing facilities are ISO9001- and ISO14001-
certified.
< pclass="header">
About DSP Group,
Inc.

DSP Group, Inc., is a global leader in the development
and marketing of high-performance, cost-effective, licensable digital
signal processing cores. The Company's family of DSP cores provides ideal
solutions for low-power cost-driven applications such as cellular,
broadband communication, VoIP, multimedia, advanced telecommunication
systems, disk drive controllers and many other types of embedded control
applications. By combining its DSP core technologies with its proprietary
advanced speech-processing algorithms, DSP Group also delivers a wide
range of enabling, application-specific ICs for full-featured integrated
telephony products and digital cordless applications. DSP Group, Inc.,
maintains an international presence with offices located around the globe.
Additional information is available on the World Wide Web at: http://www.dspg.com.

Statements contained in this release may constitute
forward-looking statements. These statements involve certain risks and
uncertainties such as acceptance of the company's new products by existing
OEM customers, potential customers and the company's ability continue to
add licensees and to develop and produce its new products at competitive
costs. These factors and other factors which
may effect future operating results or our stock price are discussed under
"FACTORS AFFECTING FUTURE OPERATING RESULTS' in our report on Form 10-Q
for the quarter ended September 30, 2000, which has been filed with the
Securities and Exchange Commission and is also available on our website
(www.dspg.com) under Investor Relations.

Teak®,TeakDSPCore®,
OakDSPCore® are registered trademarks of DSP Group, Inc. SmartCores™ is a
trademark of DSP Group, Inc. µPLAT® is a registered trademark of Oki
Electric Industry Co., Ltd. All other trademarks are the property of their
respective holders.