SAN JOSE, Calif. - October 19, 2004 - CEVA, Inc. (NASDAQ: CEVA;
LSE: CVA), the leading licensor of digital signal processors (DSP) cores
and communications solutions to the semiconductor industry, and Atmel
Corporation (NASDAQ: ATML), a leading provider of system-level integration
semiconductor solutions, today announced that Atmel has licensed the
industry-leading CEVA-X1620™ DSP and CEVA-X System1100 Platform™ to power
its range of next-generation storage applications. This latest licensing
agreement extends Atmel's portfolio of CEVA intellectual property (IP),
with Atmel having licensed previous generations of CEVA DSPs that are
currently shipping in high volume.

Next generation storage applications demand high-performance processing
to deliver maximum throughput data rates. Atmel's Storage System-on-Chip
(SoC) products provide a broad and scaleable solution for customers
designing storage products. Utilizing Atmel's solutions allows customers
to focus on developing differentiated, value-added features for their
storage products while reducing costs and time-to-market associated with
developing the complete system in-house.

The CEVA-X System1100 provides Atmel with the ideal platform to develop
high-performance, power-efficient storage solutions. Additionally, the
CEVA-X1620's scalable DSP architecture offers Atmel a seamless migration
path, reducing time-to-market and design costs for Atmel's future CEVA-X
powered applications.

"Atmel's Storage Business Unit leverages the performance and
programmability of CEVA-X to develop a range of storage products across
multiple markets, including networking and consumer multimedia, on a
single architecture. The programmability of CEVA-X also gives us an
upgrade path to high-level storage designs for High Definition DVD/TV,
H.263 and other applications," said Mehdi Bathaee, General Manager and
Managing Director of Atmel's Network Storage Business Unit. "Our HPLC
(High Performance Low Cost) architecture, based on the CEVA-X System
Platform, allows us more flexibility in our designs at best in class
performance, enabling us to offer differentiated solutions to our
customers."

"Atmel's choice of CEVA-X for its storage applications program further
extends our reach into the storage market and represents another important
design win for CEVA-X DSP," said Chet Silvestri, President and CEO of
CEVA. "We are very pleased to continue our partnership with Atmel and look
forward to working together on new and innovative storage solutions."

About CEVA-X DSP Cores

CEVA-X delivers best-in-class performance, scalability and the lowest
cost-of-development for DSP processor cores. CEVA-X1620 is the first
implementation of the CEVA-X DSP family consisting of 16-bit data width
and two MAC units. The CEVA-X1620's target markets include 3G cellular
handsets and software radio, smart phones and PDAs, video and audio
processing for mobile devices, VoIP gateways and broadband modems and
storage and home entertainment (Digital TV, HDTV, PVR, DVD).

About CEVA-X System1100

CEVA-X System1100 is a low-cost platform optimized for wireless,
storage and general purpose DSP solutions and includes the following main
features:

Sophisticated power management unit for dynamic low-power consumption


Complete set of hardware peripherals extendible through Advanced
Peripheral Bus (APB)
Host controller
connectivity through Advanced High Performance Bus (AHB) compliant
bridges
Two level memory architecture enabling shared memory between
CEVA DSP and ARM cores, reducing
system
complexity and power consumption
Code replacement
unit enabling on-the-fly firmware program bypasses

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.

About Atmel

Atmel is a worldwide leader in the design and manufacture of
microcontrollers, advanced logic, mixed-signal, nonvolatile memory and
radio frequency (RF) components. Leveraging one of the industry's broadest
intellectual property (IP) portfolios, Atmel is able to provide the
electronics industry with complete system solutions. Focused on consumer,
industrial, security, communications, computing and automotive markets,
Atmel ICs can be found Everywhere You Are(SM).

A PDF copy of this press release is also available here