Santa Clara, Calif. -- Sept. 28, 2001 - DSP Group (NASDAQ: DSPG), the
leading company in the development of high-performance, low-power,
licensable Digital Signal Processors (DSPs), today unveiled its 200MHz,
fully synthesizable TeakLite®-based chip. The chip is integrated into an
enhanced tool kit, thereby providing a 200 MHz development environment for
a highly integrated, low-power System-on-a-Chip (SoC).

The speed of the new TeakLite core represents a breakthrough for
synthesizable cores, believes Erez Barniv, Vice President of Research and
Development at DSP Group's technology licensing division.

"Historically, synthesizable cores provided system engineers with a
quick design, but they decreased the speed and increased the power
consumption of an application," Mr. Barniv said. "However, our new
TeakLite core is designed to offer system engineers high performance along
with design flexibility and a time-to-market edge."

A fully synthesizable core, also known as a "soft core" design, offers
significant flexibility because the design can be smoothly ported to any
foundry, process-geometry and third-party cell library, according to Mr.
Barniv. Moreover, the processes for porting, which are usually lengthy and
involve tailor-made design processes, can be significantly shortened
through the use of off-the-shelf, commercial Electronic Design Automation
tools.

However, a fully synthesizable core places challenges mainly with
respect to speed and power consumption, primarily because automatic
processes have limited capability for controlling performance parameters.
DSP Group believes it has overcome these constraints by modifying the DSP
core and introducing a new design flow and methodology that are designed
to offer full control over performance parameters while still maintaining
design flexibility and a time-to-market edge that a synthesizable core
design offers.

"With this new TeakLite core, we believe our licensees will be able to
compete in the most performance-demanding applications," Mr. Barniv said.
"We believe they will be able to bring to market a higher performance SoC
while still maintaining the flexibility a soft core design can offer."

The TeakLite-based chip is manufactured using a TSMC Artysan library.
The 0.18u physical design, packaged as a hard core, together with the new
design flow, will be offered, along with support and training, to existing
and future TeakLite licensees.

About TeakLite

TeakLite is a 16-bit, fixed-point, general-purpose DSP core designed
for low-power, low-voltage and high-speed, digital-processing
applications. The core is designed as an ideal solution for speech and
audio processing, wireless communication, modems, advanced
telecommunication systems, disk-drive controllers and embedded control
applications. The fully synthesizable, process-independent TeakLite is
easily portable to any ASIC library. TeakLite DSP core is binary code
compatible with the DSP Group's OakDSPCore®.

About DSP Group, Inc.

DSP Group, Inc., is the global leader in the development and marketing
of high-performance, cost-effective, licensable digital signal processing
(DSP) 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 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 integrated circuits (ICs) for full-featured
integrated-telephony products and applications, including spread spectrum
wireless technologies. DSP Group maintains an international presence with
offices located around the globe. Additional information about DSP Group
is available on its Web site at: http://www.dspg.com.

This press release contains statements that may qualify as
"forward-looking statements" under the Private Securities Litigation
Reform Act of 1995, including statements made by Mr. Barniv about the new
TeakLite core and the advantages such core provides to the Company's
existing and potential customers, as well as statements made about the
timing of releases, expectations and strategies for the new TeakLite core.
These forward-looking statements are based on current expectations and the
Company assumes no obligation to update this information. In addition, the
events described in these forward-looking statements may not actually
arise. The Company's expectations and perceptions about the new TeakLite
core and the advantages it presents could differ materially from those
described in this press release as a result of various factors, including,
the market acceptance by the Company's existing and potential customers,
the timing of product deliveries, the Company's ability to further develop
and enhance the TeakLite core to differentiate it from the Companies'
competitors at cost-effective prices and in a timely manner, the
introduction of competing products and technologies and the general market
demand for products that incorporate the Company's DSP technology. For a
further discussion of such factors, see the information provided under the
heading "Factors Affecting Future Operating Results" in our quarterly
report on Form 10-Q for the quarter ended June 30, 2001, which was filed
with the Securities and Exchange Commission on August 14, 2001 and is also
available on our Web site (www.dspg.com) under Investor Relations.

TeakLite, OakDSPCore and SmartCores are registered or non-registered
trademarks of DSP Group, Inc. Other brands and products referenced herein
are the trademarks or registered trademarks of their respective
holders.